Khairul warns against books with 'window dressing'

BSEC Chairman Professor M. Khairul Hossain on Saturday advised the merchant bankers to remain cautious in dealing with IPOs (initial public offerings) so that companies producing balance sheets with 'window dressing' cannot go public.

He stressed on the importance of quality IPOs at a programme arranged to inaugurate the new logo and office of Bangladesh Merchant Bankers Association (BMBA) in the capital.

As chief guest of the programme, the chairman of Bangladesh Securities and Exchange Commission (BSEC) said the responsibilities of merchant banks are very important as the regulator approves disclosure-based IPOs.

"The merchant banks will have to ensure that the companies' disclosures have proper reflection of their performances. Otherwise, the investors will be deceived," he said.

BMBA President Mohammed Nasir Uddin Chowdhury chaired the programme, attended by BSEC commissioners, some directors of Dhaka and Chittagong stock exchanges and other stakeholders of the capital market.

In his speech, Prof Khairul expressed optimism that foreign portfolio investments would be more attractive here than the foreign direct investments.

"Foreign portfolio investments will be increased in the capital market if the companies' disclosures have the reflection of actual performance," Khairul said, mentioning the responsibilities of merchant banks in brining quality IPOs.

The BSEC chairman said the Dhaka Stock Exchange (DSE) has got the strategic partner and the exchange's governance would be enhanced along with getting new funds if all processes of signing the agreement are executed properly.

BSEC commissioners Md. Amzad Hossain and Dr. Swapan Kumar Bala, BSEC executive director Mohammad Saifur Rahman, former DSE president Md. Shakil Rizvi, incumbent DSE director Minhaz Mannan Emon, DBA President Mostaque Ahmed Sadeque and top officials of different merchant banks, among others, were present at the inauguration ceremony of the BMBA office.

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