DSE-DBA seminar highlights market reforms, investor protection and need for policy support
Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan has urged investors to scrutinise companies’ financial statements, particularly cash flows from operating activities, before making investment decisions, warning against unrealistic profit promises and unverified information.
“Investors should not make decisions based solely on reported profits. They need to assess a company’s actual financial strength and fundamentals,” he said at a seminar marking the conclusion of World Investor Week 2026 on Monday.
The seminar, titled “Digital Deception and Scam Alert”, was jointly organised by the Dhaka Stock Exchange (DSE) and the DSE Brokers Association of Bangladesh (DBA) at DSE Tower in Nikunja, Dhaka.
Khan said investor awareness and protection must continue throughout the year, even after the week-long campaign ends.
The regulator is working on several initiatives to deepen the capital market, including the development of open-ended mutual funds, licensing of mutual fund agents and financial advisers, reforms to initial public offering (IPO) rules, direct listing regulations and the introduction of new investment products, he said.
Discussions are also underway with relevant stakeholders on introducing T+1 settlement and script netting, which could expand investment opportunities and improve market operations, he added.
Khan also stressed the importance of responsible media reporting, saying accurate information, proper context and responsible journalism were essential to protecting investors and maintaining market confidence.
In his welcome address, DSE Chairman Mominul Islam said the spread of social media had created opportunities for fraudsters to exploit investors through fake identities, misleading investment advice and promises of quick profits.
Such schemes not only cause financial losses for individual investors but also undermine confidence in the capital market, he said.
Islam called for coordinated action by regulators, stock exchanges, brokerage firms, the media and investors to prevent digital fraud and misinformation.
The DSE is working to modernise and strengthen its surveillance and monitoring systems, while initiatives are being taken in coordination with the BSEC to improve investor awareness, he said.
He also stressed the need to improve the institutional capacity, governance and professional competence of brokerage houses, merchant banks and asset management companies.
A transparent, strong and sustainable capital market is essential for Bangladesh’s industrialisation and economic development, he added.
Presenting the keynote paper, Abu Nur Mohammad Hasanul Karim, general manager of the DSE’s ICT division, outlined common digital fraud techniques, including fake investment groups on social media, fraudulent trading platforms, identity theft, phishing and the misuse of artificial intelligence.
He urged investors to verify information before investing and protect their personal and financial data.
BSEC Commissioner Md Nafiz Al Tarik cited the Ponzi scheme operated by Bernie Madoff to illustrate how fraudsters can attract investors by presenting apparently consistent returns.
Fraudulent schemes do not always promise exceptionally high profits; some use a record of seemingly stable returns to build credibility, he said.
Investors should be cautious when an investment consistently generates positive returns despite market fluctuations and should verify the source and credibility of those returns, he added.
Quick-profit offers can exploit greed and emotional decision-making, Al Tarik said, urging investors to rely on evidence, analysis and reason rather than promises of easy money.
BSEC Commissioner Nahid Mahtab said the growing use of digital technology had increased the risks of financial fraud.
Investors should verify the identities and claims of unfamiliar individuals or institutions before engaging in financial transactions, she said.
She also emphasised that reported profits alone could not provide a complete picture of a company's financial health. Investors should examine operating cash flows, investment activities and financing information to assess its underlying financial position.
BSEC Commissioner Hossain Sadat said World Investor Week should serve as a reminder that investor education and protection require year-round efforts.
Awareness campaigns alone would not be enough unless investors, regulators, financial intermediaries and professionals consistently acquired knowledge and acted responsibly, he said.
In his concluding remarks, DBA President Saiful Islam called for policy support to help the capital market withstand excessive selling pressure amid concerns over its current condition.
He said a request had been made to increase an earlier approved allocation of Tk 200 crore for capital market support to Tk 300 crore.
Islam urged the BSEC chairman to discuss the proposal with the Bangladesh Bank governor and other relevant authorities.
He also proposed extending the validity of financial statements used in IPO applications from 120 days to 180 days.
Companies awaiting the new IPO rules need additional time to complete special audits and other necessary procedures, he said, calling for a temporary relaxation of the requirements.
The seminar was chaired by Islam and attended by BSEC Commissioners Tanbir Habib Rahman, Nahid Mahtab, Nafiz Al Tarik and Hossain Sadat, alongside DSE Chairman Mominul Islam.
The panel discussion featured Asifur Rahman
