Investor protection and criminal liabilities for defective prospectuses: Bangladeshi laws compared with their equivalents in India and Malaysia

Abstract

Purpose

This paper aims to critically examine the applicability of disclosure‐based regulation in a pre‐emerging securities market.

Design/methodology/approach

The paper presents, by using archival data, an analysis of prerequisites for the usefulness of the disclosure philosophy making reference to some Asian securities markets with special reference to the contemporary experiences of the Bangladesh securities market.

Findings

The paper concludes that the disclosure philosophy itself is not a panacea, an effective disclosure regime requires a certain level of structural and infrastructural development of the market, and that a particular securities market should follow a paternalistic merit regulation until the attainment of that progress.

Originality/value

This paper contributes to the understanding of effectiveness of the disclosure philosophy for the regulation of securities markets from the perspective of investor protection.

Citation

Solaiman, S.M. (2006), "Investor protection and criminal liabilities for defective prospectuses: Bangladeshi laws compared with their equivalents in India and Malaysia", Journal of Financial Crime, Vol. 13 No. 4, pp. 467-492. https://doi.org/10.1108/13590790610707582