Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan has announced a significant policy change to enhance investor trust and reduce compliance burdens. Listed companies will no longer need to submit quarterly financial reports, with a shift towards biannual reporting. This move aims to streamline operations in the capital market and align local reporting standards with international norms to cut down on unnecessary expenses for companies.
During an event organized by the DSE Brokers Association of Bangladesh (DBA), Khan emphasized the need for smarter regulations that address market challenges. He highlighted the discrepancy between local reporting requirements and global standards, stating that interim reports in international practices are more concise.
Khan urged brokers to transition to digital apps for order placements to enhance accountability and reduce fraud risks associated with forged signatures. He proposed the implementation of specialized courts to expedite legal dispute resolutions.
Former BSEC commissioner Arif Khan emphasized the importance of robust market surveillance, a simplified IPO process, and empowering the Dhaka Stock Exchange (DSE) to prevent manipulation and attract quality listings. DSE Chairman Mominul Islam called for a departure from patronage practices among stakeholders.
DBA President Saiful Islam advocated for a review of the demutualization scheme to invigorate the stock exchange and proposed expediting the direct listing of state-owned companies. Riad Mahmud, president of the Bangladesh Association of Publicly Listed Companies, suggested streamlining the IPO process and opposed the categorization of companies based on dividend payouts. He also recommended eliminating the requirement for directors and sponsors to collectively own a minimum of 30 percent of a company’s shares.
The event was attended by all three BSEC commissioners — Tanwir Habib Rahman, Nahid Mahtab, and Md Nafeez Al Tarik.
