The Bangladesh Securities and Exchange Commission (BSEC) has proposed expanding the definition of “family” in its draft corporate governance regulations in an effort to enhance transparency, accountability, and protect investors’ interests in the stock market.

Under the proposed rules, individuals considered “insiders” or beneficiaries would include not only entrepreneurs, directors, and key persons involved in a company’s core management, but also their step-parents, step-siblings, and adopted children as family members.

The draft institutional governance guideline also broadens the definition of “family relationship.” While existing regulations define family as including only a spouse, children, parents, siblings, and in-laws, the new proposal extends it further to include uncles, aunts, cousins, nephews, nieces, and dependent individuals.

According to the proposal, the objective is to prevent any unethical transactions or insider trading conducted through board members and their extended family networks. Officials involved in the process said the revision has been made considering practical experiences over the past decade.

In addition to the expanded family definition, the draft regulations also propose strengthening the role of independent directors within the corporate governance framework to further improve oversight and accountability in listed companies.