Bourse regulators not doing their job

The Daily Star has found that of the 310 listed companies that have floated shares in the country's stock market, only 131 firms are disclosing all the information they are required to do so as per rules of the corporate governance code. Sadly, withholding of information like details of business, shareholding, profile of directors, quarterly financial statements and annual audited statements, price-sensitive information, etc. goes against regulations, but regulators (Dhaka Stock Exchange and Bangladesh Securities and Exchange Commission) do not enforce these. Rules also stipulate that all listed companies must have a functioning official website, but as our reporting reveals, many companies do not maintain this. Indeed, we have even found companies that lack websites altogether!

Now the problem with this gap in information is that prospective investors, both domestic and foreign, are dealing in the market quite blindly. They cannot make informed decisions unless the information is made public. This of course opens up the door to speculation and often with disastrous results for small investors. It is incomprehensible why the regulators have not taken note of this gross violation. If we are really serious about instilling good corporate governance, then the first order of business will be to make it mandatory for listed companies to furnish all requisite information in the nine categories on their respective websites—something they are supposedly bound to do under existing rules. This has become more imperative than ever as we have had to endure share scams year after year and now that the two stock markets in the country have international strategic partners, this major deficiency must be addressed as soon as possible.
Source: https://www.thedailystar.net

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