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The Bangladesh Securities and Exchange Commission (BSEC) is formulating a new regulatory framework titled "Public Interest Company" to mandate the stock market listing of select enterprises operating in sectors critical to public interest.
The announcement was made by BSEC Chairman Masud Khan on Monday during a high-level dialogue on the current state and future roadmap of the capital market, organized by the DSE Brokers Association of Bangladesh (DBA) at the Dhaka Stock Exchange (DSE) premises in Nikunja, Dhaka.
Addressing longstanding concerns regarding the reluctance of fundamentally strong companies to list, the BSEC chief highlighted that securities legislation grants the regulator legal authority to instruct any entity to list in the public interest. The incoming Public Interest Company policy will enforce this authority, requiring designated enterprises to mandatorily apply for stock market listing.
To eliminate bureaucratic hurdles that discourage sound firms from entering the secondary market, the commission is fundamentally overhauling initial public offering (IPO) and direct listing regulations:
Decentralized IPO Scrutiny: To avoid redundant dual documentation and prolonged scrutiny where historical financials spanning decades are repeatedly requested, companies will now submit IPO applications directly to the stock exchanges (DSE or CSE). The exchanges will handle corporate inquiries and assess business models based on verified auditor certifications regarding land, machinery, and balance-sheet liabilities. The finalized IPO regulations will be forwarded for official gazette notification within a month.
Direct and Hybrid Listing Routes: A direct listing and hybrid mechanism is being finalized to allow quality firms to offload a specified portion of shares and achieve market listing within two to three months. The direct listing draft will soon be released for public feedback, with formal implementation expected within two months. Several prominent companies have already shown interest in listing through this expedited window over the next six to twelve months.
To enforce institutional good governance, the regulator will deploy risk-based audits and unannounced surprise inspections on brokerage houses to detect shortfalls in Consolidated Customers' Accounts (CCA) and prevent balance-sheet cosmetic adjustments. Additionally, both BSEC and DSE are implementing artificial intelligence-driven surveillance systems to identify market manipulation and irregular trade patterns.
Reiterating the commission's hands-off philosophy on routine price dynamics, the BSEC Chairman emphasized that regulatory bodies worldwide do not artificially inflate market indices or dictate daily turnover, affirming that the commission will refrain from calling brokerage houses while remaining focused strictly on market integrity and anti-manipulation enforcement.
https://thedailyexpress.news/news/business/1f1a562c-47ea-6c10-aeae-f8eb0202eadd