The securities regulator has initiated a move to amend a set of norms related to post-demutualisation of different securities rules, public issues and private placement of debt securities.
According to a Bangladesh Securities and Exchange Commission (BSEC) statement issued yesterday, a three-member panel has been formed to bring amendment to different rules and regulations in line with the post- demutualisation period.
In late 2013, Dhaka and Chittagong stock exchanges had turned into demutualised exchanges. “Many rules need to be aligned with the post-demutualisation period for making the market more efficient and transparent,” said an official.
For bringing amendment to public issue rules, another four-member body was formed to ensure more accountability and transparency of issuer companies and relevant stakeholders.
One of the new provisions might be included in the amended rules is that a company might require to get their financial statements mandatorily audited by any of auditors from the panel formed by the securities regulator before going public, sources said.
The amendment was brought to stop window dressing of financial statements allegedly presented by some of the companies before going public. The securities regulator has also been criticised several times for giving IPO approval to some fundamentally weak companies.
Another new provision under the proposed amendment might suggest an IPO quota for foreign institutional investors, sources said.
The BSEC has formed another three-member body in a move to promote financial literacy among retail investors.
“People lack adequate financial literacy and products. Under the programme, the market watchdog might train various target groups such as young investors, retired people, school children, executives and middle income group for free,” said an official.