Boards responsible for performance of listed companies: BSEC

The Bangladesh Securities and Exchange Commission (BSEC) has said that the primary responsibility for the performance of companies listed on the stock market lies with the respective company's board of directors. 

The regulatory body said its approval of Initial Public Offerings (IPOs) is based solely on the verification of company disclosures and information provided at the time of listing. Consequently, the subsequent performance of a listed entity, whether positive or negative, is the sole purview of its own board.

The BSEC clarified this during a meeting in Dhaka today, attended by Anisuzzaman Chowdhury, special assistant to the chief adviser, and senior officials from the stock market regulator.

The discussion focused on the development of the capital market and the strengthening of the BSEC. Various stakeholders in the market presented proposals for the improvement of the market. The government also assured its full support for the development of the capital market.

Anisuzzaman Chowdhury, after assuming his role as special assistant to the chief adviser, visited the BSEC headquarters for the first time.

Members of the BSEC Strengthening and Capital Market Development Committee, under the Ministry of Finance's Financial Institutions Division, also participated in the meeting. Among them were Professor Sadequl Islam from the Finance Department of Dhaka University and Mohammad Saeed Kutub, additional secretary of the Insurance and Capital Market Subdivision of the Financial Institutions Division.

BSEC Chairman Khondoker Rashed Maqsood and other commissioners were also present at the meeting. Additionally, members of the BSEC Strengthening and Capital Market Development Committee under the Ministry of Finance's Financial Institutions Division participated.

During the meeting, members of the Capital Market Development Committee questioned why the listed companies are not performing well. In response, the BSEC said that companies with poor performance are the ones that can explain why they are performing badly. The BSEC cannot do anything in this regard. 

However, the BSEC mentioned that reforms are being carried out through task forces. Reforms regarding IPO rules, margin loans, mutual funds, and other necessary areas are ongoing, it said.

The BSEC also mentioned a staffing shortage and informed the committee about plans to recruit new personnel. It was revealed that there are still nearly 90 vacant positions at the commission.

To revive the stock market, several proposals were put forward by the Dhaka Stock Exchange Brokers Association during the event. These included reform of the IPO process, Margin Lending Law, and Mutual Fund and CIP, and the establishment of a self-regulatory organisation similar to FINRA.