A common platform is being created through the Financial Reporting Council (FRC) so that listed companies cannot manipulate their accounts, said Bangladesh Securities and Exchange Commission (BSEC) Professor Shibli Rubaiyat-ul-Islam.
He was speaking as the chief guest at a webinar on the impact of the budget on the digital platform hosted by Citibank Capital on Saturday.
“Aarrangements are being made to prevent companies from producing different financial statements. A common platform is being created through the Financial Reporting Council (FRC) where only one financial report of each institution will be given,” Prof Shibli Rubaiyat said.
The same report can be collected by everyone including Bangladesh Bank, NBR and BSEC as required, he said adding that this will stop the preparation of different types of financial reports of the institutions , the professor said.
He also pointed out that some issues related to capital market have been missed in the budget. There are some proposals that are not conducive to the capital market.
Such as imposing 3-year lock-in on black money investments in the capital market, reducing the corporate tax rate gap between listed and unlisted companies from 10 per cent to 8.5 per cent, lifting the tax benefit of zero coupon bonds.
Besides, in the interest of the capital market, it would be better to consider some other issues in the budget including reduction of corporate tax of merchant banks, reduction of source tax on brokerage transactions.
He said it was important to restore confidence in the market. However, it is not just the BSEC alone, there are many parties here, they also have to fulfill their respective responsibilities properly.
“BSEC is just a regulator, our main job is to make laws. To establish good governance in the market from within the jurisdiction.” he said.
We listen to everyone concerned, try to solve any problem, if there is a need to amend the law for the welfare of the market, it is also done.
“We are ready to provide you with the necessary assistance, including simplifying your business, enhancing information technology capabilities, paperless reporting, and reducing deadlines for approving or deciding on various issues,” he said. Even if the existing law needs to be amended, there is no objection to do so. But we have very little opportunity to do anything about market transactions.
Faruk Moinuddin, Managing Director and CEO of Trust Bank Limited and Ershad Hossain, Managing Director and CEO of City Bank Capital Resources took part in the discussion.