Written by The Banking Post
The Bangladesh Securities and Exchange Commission (BSEC) is moving to facilitate direct listing of large, fundamentally strong public interest companies in a bid to raise market capitalisation, improve listing quality and rebuild investor confidence, chairman Khondoker Rashed Maqsood said on Sunday.
Speaking at the sixth monthly coordination meeting with market stakeholders in Dhaka, he said the capital market needs support from the government and all relevant parties to attract strong companies into the bourse.
He also pointed to a series of regulatory reforms already completed, including the Margin Rules 2025, Mutual Fund Rules 2025 and Public Offer of Equity Securities Rules 2025. New corporate governance rules are also being prepared to improve accountability and transparency among listed companies.
Stakeholders at the meeting called for a broader reform drive to modernise the market and help move Bangladesh from frontier to emerging market status. Their proposals included launching a commodity exchange, expanding investor education, introducing electronic KYC for easier account opening, broadening financial products and strengthening surveillance to curb market manipulation.
Representatives from the Dhaka and Chittagong stock exchanges, Central Counterparty Bangladesh Limited and the Investment Corporation of Bangladesh took part in the discussion. They said coordinated reforms could help stabilise the market and support sustainable growth, but only if implementation is timely and policy support remains consistent.
Participants also stressed the need for more diversified instruments such as bonds, derivatives and exchange-traded products, saying the market remains too dependent on equities alone.
Corporate governance and regulatory oversight emerged as key concerns. Stakeholders urged stricter disclosure rules, especially for price-sensitive information, to reduce misinformation and protect investors. They also called for tougher action against manipulation and insider trading, warning that failure to do so could further weaken trust in the market.
The role of Central Counterparty Bangladesh Limited in settlement and risk management was also discussed, with participants calling for stronger operational capacity.
Investor protection was another major focus. Stakeholders discussed ways to address negative equity and unrealised losses that have affected many retail investors in recent years. They also pressed for a more effective Investor Protection Fund and wider investor education programmes, saying informed investors are essential for a stable market.
The meeting ended on a note of cautious optimism, with participants saying sustained coordination between the regulator and market players could restore discipline and confidence, provided reforms are carried out without delay.
