Dhaka bourse seeks EOIs to update panel of brokerage auditors
Under the guidelines, brokerage firms must appoint statutory auditors from the DSE-approved panel.
The Dhaka Stock Exchange (DSE) has sought expressions of interest (EOIs) from qualified audit firms to update its panel of auditors eligible to audit brokerage houses' financial statements.
In a notice, the bourse asked interested firms to submit their EOIs by 16 August to be considered for enlistment on its auditor panel.
The move follows auditor enlistment guidelines approved by the DSE last year to strengthen oversight of brokerage firms and improve transparency in line with the Securities and Exchange Rules, 2020.
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Under the guidelines, brokerage firms must appoint statutory auditors from the DSE-approved panel.
DSE Managing Director Nuzhat Anwar said the bourse plans to update its existing panel of auditors for brokerage firms.
"International best practice involves updating audit panels regularly, as some auditors may join the list while others may be excluded in alignment with the regulator's panel," she said.
She said the DSE was also considering a more compact auditor panel under the Bangladesh Securities and Exchange Commission (BSEC).
"Once this pool of auditors is established, market intermediaries and companies will select auditors from the approved list," she added.
The DSE guidelines require the bourse to seek EOIs from qualified audit firms through its website within the first month of each financial year to update its panel.
Under the guidelines, brokerage firms may appoint an auditor from the panel for up to three consecutive years, subject to approval at their annual general meetings.
Auditors already enlisted with Bangladesh Bank and the BSEC may be included in the DSE panel.
BB and BSEC currently maintain separate auditor panels for banks and non-bank financial institutions, and listed companies, respectively.
The DSE first formed its auditor panel in June 2021 with 61 audit firms, including auditors enlisted by BB and BSEC and six additional firms.
Under the updated guidelines, an auditor will be barred from the panel if it is delisted by BB or BSEC, fails to secure enlistment with the Financial Reporting Council, or is found involved in unethical practices.
An auditor may also be barred if the financial statements of a stockbroker or dealer are found to have been prepared in violation of laws or securities regulations or fail to present a true and fair view of the firm's financial position.
