BSEC pushes for direct listing of large companies to boost market confidence

The Bangladesh Securities and Exchange Commission (BSEC) is working to facilitate the direct listing of large public interest companies, aiming to enhance market capitalisation, improve listing quality, and restore investor confidence, BSEC Chairman Khondoker Rashed Maqsood said on Sunday.

Speaking at the sixth monthly coordination meeting with market stakeholders in Dhaka, he called for active support from the government and all participants to bring fundamentally strong companies into the capital market.

The chairman highlighted recent regulatory reforms, including the finalisation of the Margin Rules 2025, Mutual Fund Rules 2025, and Public Offer of Equity Securities Rules 2025, and announced that new corporate governance regulations are on the way to strengthen accountability and transparency among listed companies.

Stakeholders urged a comprehensive reform drive to modernise the market, citing the need to upgrade Bangladesh from a frontier to an emerging market. Key proposals included launching a commodity exchange, expanding investor education programs, implementing electronic KYC for easier account opening, introducing diversified financial products, and enhancing surveillance to curb market manipulation.

Participants, including leaders from the Dhaka and Chittagong stock exchanges, Central Counterparty Bangladesh Limited (CCBL), and the Investment Corporation of Bangladesh, expressed cautious optimism that coordinated reforms could stabilise the market and lay the foundation for sustainable long-term growth, while emphasising that timely implementation and consistent policy support are crucial for success.

Stakeholders also underscored the need to introduce new financial products, including bonds, derivatives, and exchange-traded instruments, to reduce the market’s heavy reliance on equities and provide diversified investment avenues.

Ensuring corporate governance and strengthening regulatory oversight emerged as key priorities. Participants called for stricter enforcement of disclosure requirements, particularly regarding price-sensitive information, to prevent misinformation and protect investors.

They also urged enhanced surveillance to curb market manipulation and insider trading, cautioning that failure to address these issues could further undermine investor trust.

The role of Central Counterparty Bangladesh Limited (CCBL) in ensuring efficient settlement and risk management was discussed, with calls to further strengthen its operational capacity.

Investor protection remained a central theme of the meeting. Participants discussed measures to reduce negative equity and unrealised losses that have affected a significant number of retail investors in recent years.

They also emphasised the need to make the Investor Protection Fund more effective and responsive, ensuring timely compensation for affected investors. Expanding investor education programmes was identified as another critical priority, with stakeholders noting that informed investors are essential for a stable and mature market.

Participants expressed cautious optimism that sustained coordination between the regulator and stakeholders would help restore order in the market, rebuild investor confidence, and lay the foundation for sustainable long-term growth.

However, they warned that the timely implementation of reforms and consistent policy support would be critical to translating these initiatives into tangible outcomes.

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