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The Bangladesh Securities and Exchange Commission (BSEC) is planning to revise its financial reporting requirements by allowing listed companies to submit financial reports every six months instead of every three months, BSEC Chairman Masud Khan has said.
He made the announcement while speaking as the chief guest at a “Meet and Greet” programme organized by the DSE Brokers Association (DBA) in the capital’s Nikunja area on Thursday.
Masud Khan said that although international accounting standards permit condensed financial reporting, companies in Bangladesh are required to prepare full financial reports every quarter, creating significant compliance burdens.
Recalling his own corporate experience, he said companies often received between 10 and 30 query letters from the regulator after submitting quarterly reports, seeking clarifications on various issues. The proposed shift to half-yearly reporting is intended to reduce this administrative burden.
The BSEC chairman also said many companies are reluctant to raise funds through Initial Public Offerings (IPOs) because bank financing is more easily available. To encourage more firms to enter the capital market, the commission plans to simplify the IPO process.
The proposed reforms include reducing listing fees, introducing an IPO tracking system that will allow applicants to monitor the status of their applications within the commission, enabling direct submission of IPO applications to the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE), overhauling delisting regulations, and fully automating the capital market.
Masud Khan also said the commission is working to remove barriers to foreign investment and revamp financial literacy programmes.