B Mirror Report : To overcome prolonged stagnation, the regulator Bangladesh Securities and Exchange Commission (BSEC) has decided on a major policy change for the Small and Medium Enterprise (SME) Board of the Dhaka Stock Exchange (DSE). Under the new decision, any investor with a minimum investment of Tk 1 million in the secondary market will now be allowed to buy and sell shares on the SME platform. The decision was finalized at the Commission’s 990th meeting held on December 30, 2025. Previously, the minimum investment requirement for trading on the SME Board was Tk 3 million, which was widely considered a major barrier for general investors.

According to the revised decision, both local and foreign investors who hold a portfolio worth at least Tk 1 million in the DSE’s secondary market will be regarded as “qualified investors” for the SME Board. To implement this, BSEC is set to amend the guidelines issued on September 21, 2022.

A senior BSEC official told Media that during the tenure of the previous commission, inconsistencies arose between the core regulations and separate directives, which created confusion among investors. The current commission has taken this decision to remove that confusion and to ensure consistency between the regulations and the guidelines.

Notably, the SME regulations formulated in 2018 set the investment threshold for small-cap stocks at Tk 1 million. However, the commission led by Shibli Rubayat-ul-Islam later increased this limit to Tk 3 million through a separate directive. This created a contradiction between the original intent of the law and the subsequent directive, negatively affecting the trading depth of the SME Board. The new commission has now decided to reinstate the Tk 1 million limit in line with the core regulations.

The SME Board operates primarily as an alternative capital-raising platform for companies with paid-up capital ranging from Tk 50 million to Tk 300 million. Market participants believe the Tk 3 million investment requirement was legally questionable and further exacerbated liquidity constraints on the SME Board. They expect that the new decision will make participation in SME stocks easier for investors and boost trading activity on the long-dormant platform.

It is worth noting that since its launch in 2021, the SME Board has undergone repeated policy changes. Initially, the minimum investment threshold was Tk 5 million, which was later reduced to Tk 2 million and then raised again to Tk 3 million. These frequent changes adversely affected investor confidence and interest. As a result, in 2025 the SME index “DSME Index (DSMEIX)” fell by nearly 21 percent to 855 points, while average daily turnover declined to just Tk 50 million. Market analysts expect the new policy to revive activity on the SME Board in 2026.