The Dhaka Stock Exchange on Sunday opened corporate governance and financial reporting department to bring more transparency among listed companies.
Securities and Exchange Commission chairman Khairul Hossain inaugurated the department which will examine mainly financial reports submitted by the listed firms. The listed firms are required to submit financial statements to the bourse every three months.
The DSE department, housed at a building adjacent to the DSE building at Motijheel, will have to report to the commission on their activities and findings on a regular basis.
Khairul said the DSE’s capacity in monitoring activities of listed companies was strengthened with the opening of the new department.
‘It will bring transparency in the financial reporting of the companies and thus will help the investors to take their investment decisions more accurately,’ he said.
DSE president Shakil Rizvi said, ‘The purpose of the department is to provide supports to the regulators and other stakeholders in scrutinising financial reports submitted by the listed companies.’
The corporate governance and financial reporting department will look into every financial disclosure made by the listed companies and report to the SEC in every month, he said.
The board members of the DSE and members of the SEC were present on the occasion.
On July 13, the bourses at a meeting with the SEC agreed to set up separate corporate finance departments within last month after the stock market regulatory body proposed to them that it would launch such departments to check and address the practices of financial manipulations.
There have been allegations that many listed firms inflate financial reports by showing higher earnings and profits, especially when they submit un-audited quarterly reports.
-With New Age input