Written by The Banking Post
The securities regulator is moving to bring large, fundamentally strong companies directly into the stock market, aiming to strengthen market depth and restore investor confidence.
Bangladesh Securities and Exchange Commission (BSEC) Chairman Khondoker Rashed Maqsood said the initiative would help raise market capitalisation and improve the quality of listed firms. He called for coordinated support from the government and market participants to attract major public interest companies to the bourse.
The move comes alongside a series of regulatory reforms. The commission has already finalised key rules on margin trading, mutual funds and public equity offerings, while new corporate governance regulations are in the pipeline to enhance transparency and accountability.
Market stakeholders, however, stressed that broader reforms are needed to modernise the sector and upgrade Bangladesh from a frontier to an emerging market. They proposed launching a commodity exchange, expanding investor education, simplifying account opening through electronic KYC, and introducing a wider range of financial instruments.
Participants also highlighted the need to diversify beyond equities by promoting bonds, derivatives and exchange-traded products, which could reduce market concentration and improve resilience.
Governance and oversight remained central concerns. Stakeholders called for stricter enforcement of disclosure requirements, particularly for price-sensitive information, along with stronger surveillance to curb manipulation and insider trading.
Investor protection also featured prominently in discussions. Market players urged more effective use of the Investor Protection Fund and measures to address negative equity and unrealised losses faced by retail investors. Expanding financial literacy programmes was seen as essential to building a more stable investor base.
They expressed cautious optimism that ongoing coordination between the regulator and stakeholders could stabilise the market and support long-term growth. However, they warned that timely implementation and consistent policy support will be critical to turning reform plans into tangible results.
