Phased implementation stressed for proposed BSEC governance framework
Panellists also highlighted the need to tailor governance requirements to the realities of individual companies.
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 must remain realistic while strengthening investor confidence in Bangladesh's capital market.
They made the call at a roundtable titled "Strengthening Corporate Governance in Bangladesh", organised by SMAC Advisory Services Limited at a city hotel on Tuesday. Bangladesh Securities and Exchange Commission (BSEC) Commissioner Hossain Sadat attended as the guest of honour and discussed the draft Corporate Governance Framework 2026.
Opening the session, Snehasish Barua, managing director of SMAC Advisory Services, highlighted the importance of independent directors, accountability and transparency in creating long-term corporate value.
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Presenting a comparison of regional governance frameworks, Zareen Mahmud Hosein, director of SMAC Advisory, recommended a phased rollout, 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.
Panellists also highlighted the need to tailor governance requirements to the realities of individual companies.
Corporate governance expert Lopa Rahman said leadership effectiveness should be assessed against clearly defined expectations, while Melita Mehjabeen, chairman of National Bank PLC, stressed that boards need to balance oversight responsibilities with each company's specific structure.
Syed A Mamun, council member of ICMAB, called for a flexible framework that recognises differences among listed companies without weakening 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 said protecting investor rights and ensuring transparency would remain priorities despite resource constraints, as these are essential to attracting both domestic and foreign investment.
