B Mirror Report: The Bangladesh Securities and Exchange Commission (BSEC) has given policy approval to allow the Dhaka Stock Exchange (DSE) to conduct immediate inspections of listed companies, aiming to quickly detect irregularities in the capital market.

The decision was made at a recent meeting following a proposal from the DSE. Under existing rules, the exchange must obtain prior approval from the commission before carrying out inspections, which often delays timely action.

DSE Managing Director Nuzhat Amin said the commission has agreed in principle to remove this requirement, enabling the exchange to inspect listed companies whenever necessary.

Currently, Section 54(1) of the DSE Listing Regulations allows inspections only with prior approval from the commission, with a requirement to submit a report within 15 days. This provision has limited the exchange’s ability to act swiftly on its own judgment.

If implemented, the new decision will remove this restriction. Initially, the commission will fast-track approvals for urgent inspection requests, and eventually, the rule will be fully withdrawn to grant the DSE independent authority.

The DSE has already begun preparations for the new system, developing a framework to conduct inspections at any time after amendments to the listing regulations. The commission will be informed about each inspection.

Currently, the DSE can inspect brokerage houses without prior approval. However, it faces challenges in verifying clients’ bank accounts. There have been allegations that some dishonest brokers submitted fake bank statements after misappropriating client funds.

Nuzhat Amin said the exchange should also have the authority to verify clients’ bank accounts, which would require approval from Bangladesh Bank. A request will be made in this regard.

He also emphasized the need for a secure and controlled system to prevent misuse of such access.

Market insiders believe that once implemented, the initiative will enhance transparency and accountability in the stock market and better protect investors’ interests.