BSEC plans major IPO reforms to boost capital market

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BSEC plans major IPO reforms to boost capital market

B Mirror Report: The Bangladesh Securities and Exchange Commission (BSEC) plans to introduce major reforms to simplify the initial public offering (IPO) process and encourage more companies to raise funds through the capital market, BSEC Chairman Masud Khan said on Thursday.

Speaking as the chief guest at an event organized by the DSE Brokers Association (DBA) in Dhaka, Khan said the current IPO process is unnecessarily complex and burdensome for companies.

He noted that although international accounting standards allow condensed financial reporting, companies in Bangladesh are required to submit full reports, often followed by multiple rounds of regulatory queries. To reduce this burden, the BSEC plans to require financial reporting every six months instead of every three months.

The chairman said many companies currently prefer bank financing over public listings because it is relatively easier to obtain, making procedural reforms essential to make IPOs more attractive.

As part of the reform package, BSEC will reduce listing fees, introduce an IPO application tracking system that allows applicants to monitor the status of their submissions, and enable companies to submit IPO applications directly to the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE).

Khan also announced plans to revamp delisting regulations, further automate the capital market, remove barriers to foreign investment, and redesign financial literacy programs.

“We want the capital market to grow vibrantly, and we want to work together with all stakeholders to achieve that,” he said.

At the event, DBA President Saiful Islam said the stock market is nearing a turnaround after more than a decade of sluggish performance, adding that investor confidence has improved over the past three months following the current commission’s policy measures.

 

 

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