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The country's capital market watchdog is unhappy over the government's apathy to reforms necessary to ensure sound corporate governance and healthy capital market.
"Despite repeated attempts by the Securities and Exchange Commission (SEC) and appeal to the authorities concerned the government high-ups have not paid heed to our appeals for reforms," SEC Chairman Mirza Azizul Islam told the FE Tuesday.
He said the reform proposals like amendment to the existing Companies Act, establishment of a board or authority to examine audited company accounts and empowering the SEC with the administrative authority to watch the companies, are pending with the government for implementation for long.
Pointing to the need for amending the existing Companies Act the SEC top brass said due to complex regulations in the Act a good number of financial disputes involving a number of companies are pending for settlements with different courts.
Unscrupulous businessmen are exploiting the loopholes in the existing Act, it was alleged.
He said though the government initiated a drive to amend the Companies Act about one year back it has now been shelved for unknown reasons.
Establishment of particular authority to examine financial reports prepared by audit firms is of utmost need in the country as many financial anomalies are being done taking advantage of loopholes in company auditing, he said.
He also said that the administrative authority to monitor company activities should be shouldered by the SEC to ensure transparency and accountability of the companies to the shareholders.
The Registrar of Joint Stock Companies (RJSC), which is now responsible to monitor company activities, lacks skilled and inadequate manpower to handle the job, he said.
Commenting on the existing stock markets situation the SEC Chairman, however, expressed his guarded optimism.
"The stock markets are behaving normally," he said.
It seems the stock markets are active now then ever before, he said.
It became possible due to continuous screening, monitoring and enforcement of rules of the commission, he added.
He also said that the proper initiative from the government can place it on sound footing.
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