Bourses allowed to quiz auditors, valuers of cos willing to go public

Stock exchanges have been allowed to quiz the auditors and valuers of the companies willing to go public for preparing realistic recommendation required for regulatory approval to IPO proposals, officials said.
The Bangladesh Securities and Exchange Commission (BSEC) has included the provision in the recent amendment brought to 'Exchanges Listing Regulations, 2015' following the demand of the premier bourse.
The securities regulator approved the revised listing regulation on May 28 last setting a mandatory provision of submitting recommendation regarding IPO (initial public offering) proposal placed by the exchanges.
As per revised regulation, the exchange will submit its recommendation on the basis of principle of disclosure-based public issue.
The securities regulator will start the job of approving IPO proposal only after getting recommendations from the exchanges.
As per previous listing regulator, the exchanges were allowed to seek information only from the company which had submitted IPO proposal.
The exchanges' IPO recommendation was not mandatory for the consent given by the regulator.
"Disclosure-based public issue rule does not allow us to visit the companies willing to public physically. As a result, our recommendation regarding IPO proposal will be realistic if we are empowered to quiz the auditors and valuers," said a senior official of the premier bourse.
He said the auditors and valuers play an important role in depicting the companies' position.
"By questioning the auditors and valuers, we will be able to justify whether the companies' disclosures are true or not," the DSE official said.
He said the revised listing regulation will create awareness among the auditors and valuers and IPO-seekers.
In its draft regulation, the premier bourse also sought the authority of inspecting the companies physically to prepare IPO recommendation.
But the BSEC has not considered the DSE's demand of conducting visit as it violates the disclosure-based public issue.
In that case, the DSE urged the regulator to include the term 'on the basis of principle of disclosure-based public issue' in revised listing regulation.
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