The Chittagong Stock Exchange is yet to launch its corporate finance department although the deadline for opening the new wing expired over a month ago.

In line with a directive of the Securities and Exchange Commission, the port city bourse was scheduled to set up the corporate finance department within July 31.

The SEC repeatedly contacted the country's second bourse to know why the exchange was delaying the launch of the department and when it would be launched.

Every time the CSE replied that the bourse was working on it and soon the department would be opened.

“We may seek formal explanation from the CSE as to why it failed to launch the corporate finance department within the stipulated time, even a month after its deadline expiry,” said an SEC official.

But the CSE, and also the Dhaka Stock Exchange, at a meeting with the stockmarket regulator on July 13 agreed to set up separate corporate finance departments within July 31 after the SEC proposed that they launch such divisions to check and address the practices of financial manipulations and enhance trans-

parency and accountability.

"The commission’s move was aimed at ensuring corporate governance and more transparency among the listed companies and thus helping investors access financial information or corporate disclosures more accurately,” the SEC official said.

He said the commission often received allegations that many listed companies inflate financial reports by showing higher earnings and profits, especially when they submit un-audited quarterly reports. But, when the reports are annualised and audited, huge anomalies are detected.

"The main objective of launching the department is to check whether the listed companies are complying with the corporate governance guidelines set by the SEC,” he added.

Neither Fakhor Uddin Ali Ahmed, president of the CSE, nor Syed Sajid Hossain, acting chief executive officer, responded to phone calls despite repeated attempts.

The Dhaka Stock Exchange however launched the corporate finance department on July 31. The division titled "Department of Corporate Governance and Financial Reporting” is engaged mainly in examining financial reports submitted by the listed firms which are required to disclose financial statements every three months.