Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan has said multinational companies operating in Bangladesh must eventually be brought to the capital market, with the regulator considering legal measures if they do not come voluntarily.

He made the remarks on Friday (September 4) while inaugurating a two-day workshop titled “Capital Market Products and Rules” for members of the Capital Market Journalists Forum (CMJF) at Subarna Gram in Narayanganj.

Masud Khan said BSEC would initially encourage large domestic and multinational companies to voluntarily list on the stock market. However, he said the commission also has the legal authority to require certain companies to list in the public interest.

“We will ask you to come voluntarily. But if you do not come voluntarily, we also have the weapon in our hands,” he said.

The BSEC chairman said the regulator aims to bring several large and flagship companies to the capital market within the next six months to one year, stressing that the market cannot achieve its desired development without attracting strong companies.

He said listing would enhance a company’s corporate image and establish a market value for it. Such valuation could help companies pursue mergers and acquisitions, while shareholders wishing to exit a business could sell their shares more easily.

He also highlighted the role of listed companies in addressing succession-related disputes in family-owned businesses, saying shareholders who do not want to remain involved could exit by selling their shares.

To bring large companies to the market more quickly, BSEC is working on introducing direct listing and a hybrid listing system. Under the proposed hybrid system, a company could raise new capital through one portion while directly listing existing shares through another.

Masud Khan said BSEC plans to introduce an “extended audit” system to simplify the initial public offering (IPO) process.

Under the proposed system, auditors would verify not only financial statements but also the actual existence and accuracy of a company’s land, machinery, inventories, receivables and supplier information.

He said such verification would help speed up the Dhaka Stock Exchange’s IPO review process.

The BSEC chairman said Bangladesh’s capital market remains largely dependent on retail investors and stressed the need to increase institutional participation.

He said the regulator would work to expand investment opportunities for provident funds and other institutional funds in both equities and corporate bonds.

He noted that pension funds and insurance companies are major investors in developed capital markets and said similar institutional participation should be encouraged in Bangladesh.

Referring to the removal of the floor price after he assumed office, Masud Khan said the move had helped Bangladesh move toward the withdrawal of special measures imposed by global index provider MSCI.

According to him, MSCI has indicated that regular reviews of Bangladesh’s index and implementation of corporate events will resume from November 2026.

He also said BSEC was working to empower the DSE further, modernise market surveillance and introduce an artificial intelligence-based surveillance system.

Regarding the corporate bond market, Masud Khan said initiatives were underway to reduce main-board listing fees. He expressed hope that the move would encourage banks and other institutions to list on the main board and gradually help expand Bangladesh’s bond market.