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Speeding up e-data submission

No visible headway yet in BSEC move

Mohammad Mufazzal | August 28, 2018 00:00:00

The proposed Electronic Data Gathering, Analysis and Retrieval (EDGAR) system of the securities regulator has not made any visible progress yet, though the move was initiated two years ago.

The Bangladesh Securities and Exchange Commission (BSEC) had earlier taken the initiative to introduce the EDGAR system aimed at speeding up the data and information submission by market intermediaries and listed companies.

The commission officials, however, said they have not started the work for EDGAR system fully yet owing to different reasons, including the delay in appointing the consultant for the project.

For example, Mohammad Saifur Rahman, a BSEC executive director and spokesperson, said the project proposal for the EDGAR system requires approval from different ministries, including the planning ministry.

"The whole process was stuck up for not getting ministries' approval to the project proposal in time," Mr Rahman said.

It took much time to hire the consultant as well.

Still, he hoped the work for the system will start from September this year as the authorities has appointed consultant for the project.

"We hope necessary work will start fully from September," Mr Rahman added.

The Asian Development Bank (ADB) had also tagged a condition for introducing e-data gathering system with its third phase of the Capital Market Development Project (CMDP-III).

After the introduction of the e-data gathering system, all intermediaries and listed companies will have to submit data and information through a format to the securities regulator.

A delegation of the commission led by its chairman Professor M Khairul Hossain had a meeting with the US Securities and Exchange Commission in August, 2016.

The other representatives of the securities regulator's delegation were the BSEC commissioner Dr. Swapan Kumar Bala and BSEC executive director Mohammad Saifur Rahman.

The EDGAR system performs automated collection, validation, indexing, acceptance, and forwarding of submissions by companies and other stakeholders.

The BSEC delegation had held meeting with the US Securities and Exchange Commission to get ideas, which would be helpful for introducing the system.

According to the BSEC official, after introduction of e-data gathering system, the regulator will fix the areas of information, which should be available for investors.

They said the BSEC wants to come out of the system of paper-based information submission by the listed companies and other stakeholders of the capital market.

If the EDGAR system is introduced, the listed companies and other stakeholders will have to submit data and information to the regulator through a formatted set.

BSEC's Mr Rahman had earlier said considering the nature of confidential information, the securities regulator is thinking about security for the proposed system.


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