In a significant policy change aimed at bolstering investor trust and reducing compliance expenses, Bangladesh Securities and Exchange Commission (BSEC) Chairman, Masud Khan, revealed that listed firms will no longer need to submit quarterly financial reports. Speaking at an event hosted by the DSE Brokers Association of Bangladesh (DBA), Khan introduced a shift towards smarter regulations to ease operational challenges in the capital market. “I am openly stating that we will eliminate the requirement for quarterly reporting and instead transition to reporting every six months,” Khan announced.
Questioning the necessity of the current detailed filing process, Khan highlighted discrepancies with global standards. He noted that local reporting demands surpass international norms, where interim reports are usually more concise. To tackle this, BSEC will introduce biannual reporting while progressively aligning local requirements with global standards to cut unnecessary compliance expenses for listed companies. Stressing his understanding of market participants’ difficulties, Khan emphasized that the commission’s regulatory strategy would concentrate on solving existing issues rather than introducing new ones.
Khan encouraged brokers to switch all order placements to digital applications to prevent falsified signatures and enhance transparency. Citing international practices where stock trading occurs through verified applications, he urged the Dhaka Stock Exchange (DSE) and brokers to transition order placements to digital apps. This move, he stated, would ensure accountability by preventing investors from disputing unauthorized trades. Additionally, he mentioned that the commission was exploring the possibility of establishing specialized courts to expedite the resolution of legal disputes.
Former BSEC commissioner Arif Khan advocated for enhanced market surveillance, a simplified IPO process, and increased authority for the DSE to combat manipulation and attract high-quality listings. DSE Chairman Mominul Islam urged all stakeholders to move away from the culture of favoritism and leniency. DBA President Saiful Islam proposed a review of the demutualization scheme to invigorate and empower the stock exchange. He also called for the expedited direct listing of state-owned companies. Riad Mahmud, president of the Bangladesh Association of Publicly Listed Companies, recommended streamlining the IPO process and opposed categorizing companies based on dividend payouts. He further suggested removing the mandate for directors and sponsors to collectively hold a minimum of 30 percent of a company’s shares.
The three BSEC commissioners — Tanwir Habib Rahman, Nahid Mahtab, and Md Nafeez Al Tarik — also attended the event.