The regulatory framework of the capital market of Bangladesh comprises Parliament, the Ministry of Finance, the Securities and Exchange Commission (SEC), the Dhaka Stock Exchange Ltd. (SEC) and the Chittagong Stock Exchange (CSE). The Bangladesh Securities and Exchange Commission (BSEC) is the authority to monitor and control the activities of the stock exchanges of Bangladesh. The BSEC is controlled by the Ministry of Finance which is obviously empowered by the Parliament. In spite of the presence of structured and strong regulatory authorities, surveillant activities of BSEC and DSE and electronic settlement of shares, it is to be emphatically noted that the capital market had the bitter experience of a nightmarish economic explosion in the late 2010 and the early 2011 and the... regulatory bodies are still in the failure doldrum zone to regulate the capital market of Bangladesh though a good number of laws are in force to regulate the functioning of the stock market mechanisms. The research will explore the loopholes existing in the statutes, ordinances and rules specifically regarding the efficacy of the regulation of the capital market. The critical investigation and analyses of the regulatory framework are also the prime concern of this research. At the end of the research, several recommendations have been categorily made to improve the regulation of the capital market for a more genuinely effective overall performance.