Experts call for practical, phased rollout of BSEC governance rules

Market experts, regulators, academics and corporate leaders have called for a phased and practical implementation of the proposed BSEC Corporate Governance Rules 2026, saying board oversight should remain realistic while strengthening investor confidence in Bangladesh’s capital market.

The call came at a roundtable titled “Strengthening Corporate Governance in Bangladesh”, organised by SMAC Advisory Services Limited at Renaissance Dhaka Gulshan Hotel on Tuesday (30 Seotember).

Bangladesh Securities and Exchange Commission (BSEC) Commissioner Hossain Sadat attended the event as the guest of honour and discussed the draft Corporate Governance Framework 2026.

Opening the session, SMAC Advisory Services Managing Director Snehasish Barua highlighted the importance of independent directors, accountability and transparency in creating long-term value.

Presenting a comparison of regional governance frameworks, SMAC Advisory Director Zareen Mahmud Hosein recommended a phased rollout of the rules, along with clearer definitions and valuation guidelines for related-party transactions (RPTs), proportionate risk oversight and a roadmap for ESG reporting aligned with IFRS S1 and S2 standards.

Panelists also discussed several key governance issues. Corporate governance expert Lopa Rahman said leadership effectiveness should be assessed against clear expectations.

Melita Mehjabeen, chairman of National Bank PLC, stressed that boards need to balance oversight responsibilities with the specific structures and circumstances of individual companies.

Syed A Mamun, council member of ICMAB, called for a flexible framework that recognises differences among listed companies without compromising governance standards. Nurul Alam, president of IIAB, emphasised directors’ professional competence and understanding of business operations.

On compliance and related-party transactions, Afseen Baten, additional director at ICAB, called for valuation-based assessments to strengthen audit committee oversight.

In his closing remarks, BSEC Commissioner Hossain Sadat said the commission would carefully consider stakeholders’ feedback while formulating an investment-friendly governance framework within this year.

He stressed that protecting investor rights and ensuring transparency remain priorities despite resource constraints, saying these are essential to attracting both domestic and foreign investment.