The Bangladesh Securities and Exchange Commission (BSEC) is moving to introduce direct listing alongside initial public offerings (IPOs) for companies seeking to list on the country’s capital market.

Under the proposed framework, companies that need fresh capital would continue to raise funds through IPOs under existing regulations. In contrast, established companies that do not require new capital but want to list by allowing existing shareholders to offload their shares would be eligible for the proposed direct listing route.

The information was disclosed in a notice issued by the BSEC on Wednesday, September 16, signed by its Executive Director and spokesperson, Abul Kalam.

According to the notice, companies seeking to raise capital through an IPO must apply under the Bangladesh Securities and Exchange Commission (Public Offer of Equity Securities) Rules, 2025.

The commission said companies that have already applied for an IPO, as well as those planning to apply, do not need to suspend their applications or delay the process because of possible future changes to the IPO regulations.

If reforms, amendments or relaxations are introduced to the IPO rules in the future, companies that have already applied will also be able to benefit from the changes, where applicable, the BSEC said.

The proposed direct listing mechanism is intended for established companies that do not need additional capital for business operations or expansion but whose existing shareholders want to offload shares through a stock market listing.

Under the proposed system, companies would not issue new shares to raise capital from the public. Instead, existing shareholders would sell part of their holdings, allowing the company to become listed on a stock exchange.

The BSEC has already prepared a draft of the Bangladesh Securities and Exchange Commission (Public Offer of Equity Securities) Rules, 2026, which has been published for public consultation. Companies meeting the prescribed eligibility criteria would be able to apply for direct listing under the proposed rules.

The commission said the proposed framework could create opportunities for more new and financially capable companies to participate in the capital market. It could also provide existing shareholders with an avenue to offload their shares while potentially broadening the depth and scope of the market.

The BSEC said the 2026 rules would be published in the official gazette and brought into effect soon. Companies that may qualify under the proposed direct listing framework have therefore been advised to make the necessary preparations.

The commission also said it would continue policy and regulatory reforms to expand listing opportunities based on companies’ characteristics and capital requirements and to encourage greater participation of capable companies in Bangladesh’s capital market.