No quarterly reporting needed for listed firms: BSEC chairman

In a major policy shift aimed at rebuilding investor confidence and lowering compliance costs, Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan announced that listed companies will no longer be required to submit quarterly financial reports.

Speaking at an event organised by the DSE Brokers Association  of Bangladesh (DBA), he outlined a transition towards smart regulation designed to ease operational burdens across the capital market.

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“I am declaring openly that we will no longer require three-monthly reporting. We want six-monthly reporting instead,” Khan said.

He questioned the necessity of the current exhaustive filing process, pointing to discrepancies with international standards.

Local reporting requirements exceed international standards, where interim reports are typically condensed, he said.

To address this, the BSEC will introduce six-monthly reporting while gradually aligning local reporting requirements with international standards to reduce unnecessary compliance costs for listed companies.

Emphasising his deep understanding of the challenges faced by market participants, Khan said the commission’s regulatory approach would focus on solving problems rather than creating new ones.

Khan urged brokers to shift all order placements to digital apps to eliminate forged signatures and improve accountability.

Pointing to international practices where stock trading is conducted through verified applications, he urged the Dhaka Stock Exchange (DSE) and brokers to shift order placement to digital apps. This, he said, would ensure accountability by preventing investors from disputing unauthorised trades.

He also said the commission was considering specialised courts to expedite the resolution of legal disputes.

Former BSEC commissioner Arif Khan called for stronger market surveillance, a simplified IPO process and greater authority for the DSE to curb manipulation and attract quality listings.

DSE Chairman Mominul Islam said all stakeholders should move away from the culture of patronage and forbearance.

DBA President Saiful Islam called for a review of the demutualisation scheme to make the stock exchange more vibrant and empowered. He also urged the fast-track direct listing of state-owned companies.

Riad Mahmud, president of the Bangladesh Association of Publicly Listed Companies, called for shortening the IPO process. He also opposed categorising companies based on dividend payouts.

He further suggested withdrawing the requirement for directors and sponsors to collectively hold at least 30 percent of a company’s shares.

All three BSEC commissioners -- Tanwir Habib Rahman, Nahid Mahtab and Md Nafeez Al Tarik -- were also present at the event.