BSEC seeks access to company registration database to verify information of firms

The Bangladesh Securities and Exchange Commission (BSEC) has asked for access to the database of the Registrar of Joint Stock Companies and Firms (RJSC) so that it can easily verify information of companies which want to raise funds from the capital market.

The BSEC has recently sent a letter to the RJSC to this end, in which it also expressed interest to provide technical support if necessary.

"We would like to propose an online verification portal with you by which the authorised officers of the commission can verify the documents from your server in real-time reducing job-work for both the institutions," reads the letter, a copy of which was obtained by The Business Standard.

"We need frequent verification of basic registration documents, ownership information, and particulars of directors. Currently, there is no easy way to verify those with RJSC except manual letter-based communications, which reduces the ease of doing business," it adds.

The commission officials said they often struggle to verify the authenticity of information submitted by companies aspiring for enlistment due to the lengthy process of cross-checking work in correspondence with the RJSC, among others.

Currently, a company, after applying to the BSEC, has to wait for one year to raise funds from the capital market.  The commission is now keen to bring it down to the shortest possible time.

Access to the proposed online system will facilitate verification of the BSEC, the officials said, adding that even if a fake certificate is submitted, it can be verified quickly.

"As the RJSC is the authority and keeps all the documents, we have no alternative to going to the RJSC to cross-check company information," BSEC Executive Director Rezaul Karim told The Business Standard. 

"Sometimes companies file fake documents. Sometimes, they have to wait a long time to get their registration certificates from the RJSC. If we have access to the module [online system], we will be able to verify data, which will reduce complexity," he added.

The BSEC is currently using such a verification system to cross-check data with the Institute of Chartered Accountants of Bangladesh, the national body of professional accountants. 

It can easily find out the authentic income and expenditure accounts of any company through this system.

The RJSC is the sole authority which facilitates the formation of companies and keeps track of all ownership.