DSE opens corporate governance wing Sunday

Star (July 28, 2011)

The premier bourse will open a new department on Sunday to ensure corporate governance and bring more transparency among listed companies.
The new division titled “Department of Corporate Governance and Financial Reporting” will be engaged mainly in examining financial reports submitted by the listed firms, which are required to disclose financial statements every three months.
Professor M Khairul Hossain, chairman of Securities and Exchange Commission, is scheduled to launch the newly set up department, which will have to report to the commission on their activities and findings on a regular basis.
After approving the formation of the department at a board meeting recently the Dhaka Stock Exchange management issued an office circular to this effect on Sunday last.
Jiban Chandra Das, general manager (finance and accounts) of the DSE, will head the department, which will also comprise Kishor Kumar Gomasta, senior executive (finance and accounts), Gias Uddin Mollah, executive (research and development), Masud Khan, senior executive (finance and accounts) and Abdul Kader, executive (market operations).
The initiative meant to make the bourses the primary regulator, will also help the investors in getting financial information or corporate disclosures more accurately, said Shakil Rizvi, president of the DSE. “Earlier we had a corporate governance wing. Now, with opening of the department the activities on corporate governance will be strengthened.”
“Through this department we will promote the listed companies' disclosure of financial information, announcement of dividends and holding annual general meetings on time; it will also act as a primary regulator,” he said.
The department will also check whether the listed companies are complying with the corporate governance guidelines set by the SEC, he added.
Earlier on July 13, the twin bourses at a meeting with the stockmarket regulator agreed to set up separate corporate finance departments within this month after the SEC proposed to them that it would launch such divisions to check and address the practices of financial manipulations and increase transparency and accountability.
There have been allegations that many listed companies inflate financial reports by showing higher earnings and profits, especially when they submit un-audited quarterly reports. But, when the reports are annualised and audited, huge anomalies are detected.