BSEC to review quarterly reporting, tighten mkt manipulation

The newly appointed chairman of the Bangladesh Securities and Exchange Commission (BSEC), Masud Khan, on Thursday said that the commission will review interim financial reporting requirements and strengthen enforcement against market manipulation.

At his first press conference as the BSEC chief, held at the commission’s auditorium in Dhaka, he said the current practice of requiring quarterly reports that are more extensive than international standards imposes significant costs on listed companies and often creates unnecessary compliance burdens, reports UNB.

“Therefore, we will reassess quarterly reporting requirements, the structure of interim reports, and disclosure obligations to ensure alignment with international best practices while maintaining transparency and investor protection,” he said.

“We will also review repetitive reporting and filing requirements that increase costs without creating meaningful value. Our philosophy is simple: regulate where necessary, simplify where possible.”

He said the commission aims to restore investor confidence, attract quality companies to the stock market, and transform Bangladesh from a retail-driven frontier market into a transparent, institution-led emerging market. The BSEC chairman said the commission wants to transform Bangladesh’s capital market from a retail investor-driven frontier market into a credible, transparent, and institutionally driven emerging market capable of mobilising long-term domestic and international capital.

Acknowledging that the country’s capital market has failed to keep pace with Bangladesh’s economic growth, he said investor confidence has weakened over the years due to governance failures, limited participation by quality companies, and declining foreign investor interest.

Many investors incurred losses, while several strong local and multinational companies chose to remain outside the market, he noted.

To address these challenges, the commission plans to undertake a comprehensive review of existing regulations, reporting requirements, and approval processes.

The chairman said the regulator would move towards a more principles-based and risk-based regulatory framework to reduce unnecessary compliance costs while maintaining investor protection.

Digitalisation will be another major pillar of the reform programme.

The BSEC plans to shift regulatory reporting, licensing, disclosures, approvals, IPO applications, and other regulatory filings to fully digital platforms in phases.

The chairman also identified the shortage of quality securities as one of the major weaknesses of the stock market.

He said many large local companies, multinational corporations, and state-owned enterprises remain outside the market despite being suitable candidates for listing.

To address the issue, the regulator will actively engage with these companies and introduce a direct listing framework that would allow eligible firms to list without raising fresh capital.

The commission will also work with the government and the National Board of Revenue to design a “Listed Company Advantage Programme”, offering incentives such as a wider tax gap between listed and non-listed firms, faster approvals, and simplified compliance procedures.

The chairman said Bangladesh’s stock market remains heavily dependent on retail investors and lacks a strong institutional investor base.

The commission plans to strengthen the mutual fund industry, encourage professional management of provident and gratuity funds, and increase participation by insurance companies.

“We also recognise that investor confidence in the mutual fund industry needs to be rebuilt,” he said, pledging stronger governance, transparency, and accountability.

The BSEC chief further said that attracting foreign investors will remain a priority.

He acknowledged concerns among foreign investors regarding governance, disclosures, profit repatriation, and market practices and pledged to address them systematically.

On enforcement, the chairman promised significantly stronger surveillance and regulatory action against market manipulation.

He said the BSEC, the Dhaka Stock Exchange, the Chittagong Stock Exchange, and Central Depository Bangladesh Ltd would be brought under an integrated real-time monitoring framework.

Special attention will initially be given to Z-category securities, where governance and disclosure risks are relatively high.

“Insider trading, circular trading, wash trades, pump-and-dump schemes, front-running, and other manipulative activities will be detected more quickly, investigated more thoroughly, and penalised more effectively,” he said.

The regulator may also empower stock exchanges to take immediate action, including temporary trading suspensions, in cases involving suspected insider trading, information leakage, or serious disclosure failures.

The chairman stressed that the regulator’s objective is not to control share prices.
“Our objective is fair price discovery and equal access to information. Prices should be determined by the market, not by manipulation,” he said.

The BSEC intends to engage extensively with investors, listed companies, market intermediaries, stock exchanges, professional organisations, and policymakers.

“We will listen. We will consult. However, consultation does not mean compromising market integrity or discipline.”

He said the success of the commission would ultimately be measured by results rather than announcements.