BSEC plans direct listings to bring big, strong companies to market

The Bangladesh Securities and Exchange Commission (BSEC) plans to expand the scope of direct listings to bring more financially sound and reputed large companies into the country’s capital market.

BSEC Chairman Masud Khan said the initiative would help deepen and broaden the market by increasing the participation of fundamentally strong companies and could also attract greater interest from domestic and foreign investors.

He made the remarks at a consultation meeting with stakeholders on the draft rules for direct listings at the BSEC office in the capital's Agargaon on Thursday (September 3).

Masud said listing on the stock market can enhance a company’s credibility and reputation while offering benefits such as tax advantages, higher valuation and improved share liquidity. It can also provide companies with access to additional capital for future business expansion.

He said listing can also create opportunities for existing owners and their successors to monetise their holdings, making direct listing an attractive option for large and established businesses.

The BSEC is also reviewing the existing initial public offering (IPO) framework to make it more practical and effective, the chairman said.

The commission is considering a combined listing model that would allow companies to sell existing shares while issuing new shares when entering the capital market.

The proposed Bangladesh Securities and Exchange Commission (Direct Listing of Securities on Stock Exchanges) Rules have been drafted to establish a modern, transparent and effective regulatory framework for bringing strong companies directly to the market.

The draft has already been published for public consultation.

The consultation meeting discussed proposed eligibility criteria, application procedures, regulatory conditions and pricing mechanisms for direct listings.

Stakeholders shared their views, recommendations and practical experiences on the proposed framework.