B Mirror Report: The Bangladesh Securities and Exchange Commission (BSEC) today held a high-level strategic dialogue at its multipurpose hall in the capital to discuss the use of Initial Public Offering (IPO) proceeds for loan repayment and issuer investments.

The meeting, chaired by BSEC Chairman Khondoker Rashed Maqsood, brought together commission members and senior representatives from key capital market stakeholders to explore ways to develop a more vibrant and dynamic capital market, according to a press release.

Stakeholders urged the regulator to adopt a more flexible approach regarding the use of IPO proceeds for debt repayment, including regularized and rescheduled loans.

Apex Footwear Managing Director Syed Nasim Manzur said that many global and regional markets allow greater flexibility in using IPO funds for debt servicing compared to Bangladesh. He suggested that aligning local regulations with international practices could improve market competitiveness.

BSEC Chairman Maqsood said the commission is working to encourage new listings and market development while maintaining its core responsibility of protecting investor interests. He assured that all stakeholder proposals would be reviewed, ensuring market integrity and investor safety remain priorities.

He also highlighted ongoing efforts to bring public-interest companies under a stronger governance framework and attract fundamentally strong firms to the stock exchange.

CDBL Chairman and Square Group Managing Director Tapan Chowdhury stressed that IPO fund utilization should be evaluated based on whether it adds real value and profitability to a company, cautioning against weak justification for large-scale projects.

Association of Bankers, Bangladesh (ABB) Chairman Mashrur Arefin called for capital restructuring flexibility, proposing that IPO proceeds could be used for repayment of production or expansion-related loans. He also suggested allowing repayment of rescheduled loans up to two times under controlled conditions.

MCCI President Kamran Tanvirur Rahman noted that the economy’s reliance on short-term deposits for long-term financing should be reduced, emphasizing the need for consistent policies to strengthen the capital market as a long-term funding source.

The meeting concluded with the BSEC reaffirming its commitment to improving coordination among market institutions to ensure a transparent and sustainable capital market governance framework.

Representatives from the Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), Bangladesh Association of Banks (BAB), and Bangladesh Association of Publicly Listed Companies (BAPLC), among others, also attended the discussion.