Digital reporting on the cards to ensure transparency in market data

The securities regulator has decided to introduce a new technological framework to enhance transparency in data generation and transmission across the country's stock market.

The adoption of a standardised digital reporting language will allow real-time data processing, enabling machines to interpret financial information instantly and ensuring uniform accounting classifications across all institutions, said Md Saifuddin, commissioner of the Bangladesh Securities and Exchange Commission (BSEC).

He made the remarks as chief guest at a seminar organised by the Bangladesh Institute of Capital Market (BICM) on Sunday to mark World Investor Week 2025.

At present, most financial reports in Bangladesh are submitted in PDF or CSV formats, which are static and not machine-readable. This makes it difficult for regulators to assess investor risks, hinders professionals from conducting effective analysis, and often results in duplication of work across agencies.

Mr Saifuddin noted that globally, this gap has been bridged through the adoption of XBRL (eXtensible Business Reporting Language) and its modern version, iXBRL (Inline XBRL). iXBRL is distinctive because it creates a single report that is both human-readable in any web browser and machine-readable for instant analysis and comparison.

"This reporting standard is already in use in major global markets such as the US SEC's EDGAR system, the EU's ESEF framework, India's MCA/SEBI reporting, and Japan's FSA system," he said. "The global direction is clear - digital and structured reporting is the new norm. We will now adopt this in Bangladesh."

He emphasised that for Bangladesh, adopting this standard is not merely a technical upgrade but a foundational step towards building the digital backbone of financial accountability - ensuring transparency for investors, efficiency for companies, and stronger oversight for regulators.

Speaking to The Financial Express, Mr Saifuddin said the BSEC held a preparatory meeting a few weeks ago to initiate the process and received "very encouraging" feedback.

"We have already formed a committee and reached a consensus," he said.

The committee comprises representatives from the Institute of Chartered Accountants of Bangladesh (ICAB), the Institute of Cost and Management Accountants of Bangladesh (ICMAB), chief financial officers (CFOs) of leading companies, chief technology officers (CTOs) from the Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), and Central Depository Bangladesh Limited (CDBL), as well as officials from the BSEC's Chief Accountants Division and ICT Division.

"The roadmap is very clear," said Mr Saifuddin.

At the same seminar, BICM lecturer Imran Mahmud presented a keynote paper titled "Financial Statement Analysis and Its Relevance in Machine Learning-Based Stock Price Prediction."

This year's World Investor Week, declared by the International Organization of Securities Commissions (IOSCO), focuses on "Technology and Digital Finance, Artificial Intelligence, and Fraud and Scam Prevention." In line with that theme, the BICM seminar highlighted the growing role of Artificial Intelligence (AI) in financial analysis and market prediction.

The event was presided over by Mr Wajed Hassan Shah, executive president of BICM.

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