Stocks
BSEC Launches IT Audit of DSE & CSE
The Bangladesh Securities and Exchange Commission (BSEC) has commenced an audit of the IT operations of the Dhaka and Chittagong stock exchanges. This initiative aims to evaluate the systems’ strengths, weaknesses, and potential threats, ensuring robust and effective services in securities trading.
A six-member inspection committee, formed in May, has begun its work, requesting detailed SWOT (strengths, weaknesses, opportunities, and threats) analyses and mitigation strategies from the stock exchanges. The committee’s focus includes data security, confidentiality, backup procedures, and log management.
Given the critical role of information technology in facilitating securities trading, this audit is particularly timely. The Dhaka Stock Exchange (DSE) has faced multiple technical glitches in recent years, prompting investigations that have yet to be publicly disclosed. Notably, in March, an operational error led to incorrect information being displayed for an entire trading session, leaving investors in the dark.
A BSEC official, speaking anonymously, emphasized that the regulator is committed to resolving these issues permanently. The commission will take appropriate measures if any deficiencies are identified.
Tasks of the Committee
The inspection committee will conduct comprehensive annual IT audits and partial audits focused on critical information handling. In case of any significant incidents that may affect trading or market operations, the committee will submit interim reports to the commission.
Sheikh Mahbub Ur Rahman, Director-General of BSEC, serves as the committee’s convener, with Md Yasin Rahman, Assistant Director of BSEC, acting as the secretary.
The committee’s responsibilities include auditing the IT infrastructure, data servers, and software handling issues of the exchanges. They are required to submit reports within 30 working days of the financial year’s end. Additionally, quarterly audits on critical information handling will be conducted, with reports due within 10 working days of each quarter’s end.
The audit scope encompasses compliance, physical and network security, data backup and recovery, hardware and software inventory, change management, environmental controls, access control, incident response, monitoring logging, vendor management, and other related issues.
This comprehensive IT audit aims to ensure the smooth operation and trading of securities, addressing any potential vulnerabilities in the exchanges’ IT systems.
One of the Listed companies, National Polymer Limited has recommended 10.50% Cash Dividend for the year ended June 30, 2024.
It has reported Consolidated EPS of Tk 2.27 paisa, and Consolidated NAV per share of Tk 30.63 for the year ended March 31, 2024.
The Annual General Meeting (AGM) of the company will be held on December 18, through the digital platform. The record date for this has been fixed at October 22.
The Company also discloses its financial reports for the second quarter, (April – June 24).
As per the company’s consolidated life revenue account for April to June 2024, the excess of total income over total expenses, including claims (surplus), stood at Tk 1,394.24 million. This marks a significant increase from the surplus of Tk 823.68 million during the same period in 2023.
For the first half of 2024, from January to June, the company reported a surplus of Tk 2,177.57 million, compared to Tk 1,290.39 million in the corresponding period of the previous year.
Additionally, the Life Insurance Fund balance as of June 30, 2024, reached Tk 55,188.62 million, showing a net increase of Tk 5,892.25 million from Tk 49,296.37 million on June 30, 2023.
One of the Listed companies, Beacon Pharmaceuticals PLC has recommended 20% Cash dividend and 10% Cash Dividend to Sponsor Shareholder and Directors for the year ended June 30, 2024.
It has reported EPS of Tk 2.26 paisa, and NAV per share of Tk. 26.37 for the year ended June 30, 2024.
The Annual General Meeting (AGM) of the company will be held on December 23, through the digital platform. The record date for this has been fixed at October 27.
The Bangladesh Securities and Exchange Commission (BSEC) has removed three audit firms from its panel for their failure to secure enlistment with the Financial Reporting Council (FRC), according to a notice issued today.
The firms—A Hoque & Company, FAMES & R, and SK Barua & Company Chartered Accountants—were delisted following the FRC’s request. In December last year, the FRC published a list of enlisted audit firms and subsequently, in February, requested the BSEC to remove any firms that were not included on that list.
BSEC regulations mandate that financial statements signed by auditors outside its approved panel will not be accepted. With the removal of these three firms, the total number of audit firms on the BSEC panel has been reduced from 48 to 45.
Sources from the FRC revealed that 15-20 audit firms failed to secure enlistment last year, and approximately 45 chartered accountants are currently under restrictions imposed by the Institute of Chartered Accountants.
Although the delisted firms can no longer audit issuer companies or listed securities, they are allowed to complete audit and assurance services that were initiated before their removal, the BSEC clarified.
