Staff Correspondent

The Bangladesh Securities and Exchange Commission (BSEC) is planning to abolish mandatory quarterly financial reporting for listed companies and replace it with half-yearly reporting in a move aimed at reducing the compliance burden on corporate issuers.

BSEC Chairman Masud Khan announced the plan while addressing a programme organised by the DSE Brokers Association (DBA) in Dhaka on Thursday.

He said listed companies would be required to submit financial reports every six months instead of every three months, noting that the existing reporting framework creates unnecessary difficulties for companies.

Referring to his previous corporate experience, the BSEC chief said companies currently prepare full financial statements every quarter despite international accounting standards generally permitting condensed interim reporting. He added that companies often receive between 10 and 30 clarification letters from the regulator after submitting quarterly reports, increasing compliance costs and administrative burdens.

Masud Khan also said the commission would simplify the initial public offering (IPO) process to encourage more companies to raise funds from the capital market instead of relying on bank loans.

As part of the planned reforms, the regulator intends to reduce listing fees, introduce an online tracking system for IPO applications and allow companies to submit IPO applications directly to the Dhaka and Chittagong stock exchanges. The BSEC also plans to overhaul delisting regulations and further automate market operations.

The chairman said the commission was also working to remove barriers to foreign investment and strengthen financial literacy programmes to support the long-term development of the capital market.

Speaking at the event, DBA President Saiful Islam said the stock market was nearing a turnaround after more than a decade of weakness, adding that investors' confidence had improved over the past three months following a series of reform measures introduced by the current commission.

BSEC Commissioners Tanvir Habib Rahman, Nahid Mahtab and Md Nafiz Al Tariq, along with other senior officials, also attended the programme.