Stocks
BSEC’s New Chairman Vows to Combat Stock Market Corruption, Restore Investor Trust
The newly appointed Chairman of the Bangladesh Securities and Exchange Commission (BSEC), Khondoker Rashed Maqsood, has pledged a rigorous approach to preventing future irregularities and corruption within the stock market. Speaking to the media for the first time since assuming office, Maqsood underscored his commitment to rebuilding investor confidence and addressing the systemic issues that have troubled the market in the past.
Maqsood stated, “We will conduct thorough investigations into the causes of previous market irregularities and take decisive action to eliminate them. It’s not sufficient to merely apply corrective measures; we must address the underlying factors to prevent recurrence.”
With approximately 1.5 million active investors currently in the market, Maqsood stressed the importance of regaining their trust, with an ambitious target to grow the investor base to 2.5 million, and eventually 5 million, within the next four years.
He highlighted the issue of inactive Beneficiary Owner (BO) accounts, emphasizing the need to restore investor confidence to reactivate these accounts and encourage market participation. Maqsood also noted the significant growth potential of the stock market, given Bangladesh’s economic size, and drew comparisons with neighboring Nepal’s advancements in the sector.
“To truly establish the stock market as a hub for long-term investments, we need to develop the necessary infrastructure that allows ordinary citizens to safely invest for 7 to 8 years,” Maqsood remarked.
Regarding the need for reforms, he said, “Reforms are underway nationwide, and BSEC will not be an exception. In international institutions, substantial changes are implemented every three years to achieve better outcomes. Our stock market must also embrace such reforms.”
Maqsood added that while BSEC will collaborate with other capital market regulators, it will strive to operate independently to enhance the stock market’s performance. He plans to work closely with BSEC’s senior officials to formulate short, medium, and long-term strategies.
Khondoker Rashed Maqsood brings over 30 years of banking experience both in Bangladesh and abroad. His previous roles include Managing Director at Citibank NA Bangladesh, Citibank NA Indonesia, NRB Commercial Bank, and Standard Bank. More recently, he served as an advisor for Strategic and Business Development at the International Finance Corporation (IFC), a World Bank Group member. Maqsood holds an MBA in Finance from the Institute of Business Administration (IBA) at Dhaka University.
His appointment follows the resignation of former BSEC Chairman Professor Shibli Rubayat-Ul-Islam on August 10. After a brief interim period with Mohammad Mohsin Chowdhury as acting chairman and M Masrur Reaz as chairman, who declined the role, Maqsood was appointed by the Ministry of Finance.
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.
