BSEC Allows Subsidiaries of NBFIs to Operate Despite Liquidation Orders

The Bangladesh Securities and Exchange Commission permitted twelve subsidiaries of nine Non-Bank Financial Institutions to continue operating, even though Bangladesh Bank is processing the cancellation of these institutions' licenses. Eight of the subsidiaries were given deadlines to resolve capital shortfalls, with deadlines ranging from December to April next year. The BSEC also allowed Aviva Equity Management to operate because it possesses sufficient net assets, despite Bangladesh Bank declaring Aviva Finance non-viable.

The decision involves nine NBFIs whose parent companies were targeted for liquidation by Bangladesh Bank. Bangladesh Bank had previously reversed an earlier decision to liquidate these institutions, but later decided to liquidate four and appoint administrators. This action affects the financial stability of the non-bank sector in Bangladesh.