B Mirror Report : The DSE Brokers Association of Bangladesh (DBA), an organization of stock market brokers, has called for aligning the sector-wise classification of companies listed on the Dhaka Stock Exchange (DSE) with international standards.

According to the association, the existing classification system is outdated, creating limitations in market analysis and investment decision-making.

In this regard, DBA President Saiful Islam sent a letter on Wednesday (January 21) to Bangladesh Securities and Exchange Commission (BSEC) Chairman (Senior Secretary) Khondaker Rashed Maqsood. In the letter, he noted that the DSE currently follows 22 sector-wise classifications, including government and corporate bonds and mutual funds. This structure has remained unchanged for a long time and is no longer in line with the current global stock market framework.

The letter further stated that most stock exchanges around the world now follow either the Global Industry Classification Standard (GICS) or the Industry Classification Benchmark (ICB). These internationally recognized systems make sector-wise analysis more transparent, effective, and comparable, helping investors make better decisions.

The DBA also highlighted several inconsistencies in the current classification. For example, Marico Bangladesh Limited is listed under the “Pharmaceuticals and Chemicals” sector, and British American Tobacco Bangladesh is listed under the “Food and Allied” sector. However, under international standards, both companies would be more appropriately classified under the “Consumer Staples” sector. Similarly, companies such as Walton, Singer, Bata, and Apex would better reflect their business nature and consumer-driven activities if they were classified under the “Consumer Discretionary” sector.

According to the DBA, sector-wise performance analysis plays an important role in understanding economic trends, consumer behavior, and income flows. However, an outdated and inconsistent classification structure is limiting the depth and effectiveness of such analysis. The association believes that adopting internationally accepted classification standards would improve market transparency, enhance comparability with global markets, and strengthen the confidence of foreign investors.

In the concluding part of the letter, the DBA urged the BSEC to initiate reforms of the DSE’s sector-wise classification through consultations with all relevant stakeholders. The association expressed hope that such reforms would strengthen investor confidence both domestic and foreign improve analytical capacity, and enhance the country’s integration with global capital markets.