BSEC, DSE Hold Seminar
More independent directors in listed firms needed for transparency
More independent directors in listed companies in the capital market can assure transparency and stop manipulation of financial statements in the portfolio market.
Due to the dire situation in the banking sector, it would be almost impossible in the next ten years for businessmen to get fund to run business except from the capital market, which would be the only source of funding.
So great care need to be taken to develop the capital market ensuring all discipline and proper governance for which the presence of independent director is all the more important, they said.
These observations were made at a seminar on Tuesday titles 'The Role of Independent Directors to Protect the Interest of Minority Shareholders' held in a city hotel jointly by Dhaka Stock Exchange (DSE) and Bangladesh Securities and Exchange Commission (BSEC) celebrating World Investors Day 2019.
In the inaugural session Professor Md Helal Uddin Nizami, Commissioner of the BSEC spoke as the chief guest while Professor Dr Abul Hashem, Chairman of the DSE chaired the session.
Helal uddin said presence of independent directors at listed companies in the USA is 66 per cent, it is 33 in India while in Bangladesh it is not more than 15 per cent. But as per existing law the number could be increased here to ensure maintaining accountability and create more confidence in share holders for putting more money in the bourse.
The BSEC commissioner said, "We try to provide day to day data to share holders and we have plan to increase it. By this time we have also taken several projects to educate small and big investors."
He said, "We see few trouble in listed banks and as they are under Bangladesh Bank rules and have to discuss problems with the central bank to solve them. Such practice will be helpful for capital market," he said.
Abul Hashem said independent directors can play a significant role in a company and as per global standard it is time to increase their presence on our listed companies.
He said it is not clear why people are depending more on banks than capital market for sourcing capital despite given a lot of facilities to the capital market for souring business capital. He said the loopholes should be identified.
The DSE acting managing director Abdul Matin Patwary in his opening remarks said both DSE and BSEC have jointly taken few projects to educate share holders which may help them to understand the portfolio market and let them decide the real company they would make investment.
A technical session was also held in the seminar moderated by Md Saifur Rahman, executive director of BSEC while the key note paper was presented by AKM Ziauln Hassn Khan, CRO of the DSE. A panel discussion was also held at the end.