B Mirror Report: The Bangladesh Securities and Exchange Commission (BSEC) has undertaken a major initiative aimed at listing fundamentally strong companies in the stock market and ensuring sustainable development of the sector.

The move was highlighted at a recent meeting titled “Debt Repayment or Investment through IPO Funds”, held in Agargaon, Dhaka. BSEC Chairman Khondoker Rashed Maqsood led detailed discussions with key stakeholders on revitalizing market dynamics.

Speaking at the meeting, the chairman emphasized that strengthening the capital market in the long term and encouraging new listings remain top priorities. However, he reiterated that safeguarding investors’ interests is the commission’s primary mandate.

He also stressed the need for greater coordination among institutions to restore vibrancy and dynamism in the market.

Business leaders and market experts at the meeting proposed easing existing restrictions on using IPO proceeds to repay company loans.

They suggested allowing repayment of rescheduled but currently regular loans using IPO funds. According to them, aligning with global standards would encourage large corporations to enter the market.

Syed Nasim Manzur, Managing Director of Apex Footwear, noted that neighboring countries do not impose such strict limitations on using IPO funds for debt repayment.

Meanwhile, Tapan Chowdhury of Square Group cautioned that approvals should be based on project viability rather than the reputation of large business groups.

Mashrur Arefin of City Bank emphasized the need for allowing capital restructuring through repayment of productive sector loans.

Kamran T Rahman, President of Metropolitan Chamber of Commerce and Industry (MCCI), pointed out the risks of financing long-term loans with short-term deposits. He called for policy alignment to enable long-term financing through the capital market.

Similarly, Abdul Hai Sarker, Chairman of Bangladesh Association of Banks (BAB), highlighted a strong capital market as a key driver of economic growth.

BSEC spokesperson Md Abul Kalam stated that all stakeholder proposals will be carefully reviewed. Ensuring good governance in the capital market while protecting investor interests remains the commission’s core objective.