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Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan has said multinational companies (MNCs) operating in Bangladesh will eventually have to list on the country’s stock market.
He said the regulator would initially encourage such companies to voluntarily seek listing, but it also has legal powers to require them to do so in the public interest if they refuse.
“Many large domestic and multinational companies operate in Bangladesh. The capital market cannot develop as desired unless these good companies are brought to the market quickly,” Masud said at the opening of a two-day workshop on “Capital Market Products and Rules” organised by BSEC for members of the Capital Market Journalists Forum (CMJF) at Subarna Gram in Narayanganj on Friday.
He said BSEC would seek to bring several major and flagship companies to the market within the next six months to one year.
According to the BSEC chairman, securities laws allow the regulator to direct certain companies to list in the public interest. The commission also plans to define “Public Interest Company” (PIC) in law to facilitate the process.
Direct listing and hybrid system
Masud said listing would enhance a company’s corporate image and establish a market value for its shares. This valuation could help companies finance acquisitions and mergers, while shareholders wishing to exit a business could sell their shares more easily.
He also said listing could help address succession-related disputes in family-owned businesses by allowing shareholders who do not wish to remain involved to sell their stakes.
To bring large companies to the market faster, BSEC is working on introducing direct listing and a hybrid listing system. Under the proposed hybrid model, a company could raise new capital through one portion of the offering while directly listing existing shares through another.
IPO process to be simplified
Masud said BSEC plans to introduce an “extended audit” system to speed up 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 assets, machinery, inventories, receivables and supplier information.
He said such verification would help accelerate the Dhaka Stock Exchange’s IPO review process.
Focus on institutional investors
Masud said Bangladesh’s capital market remains heavily dependent on retail investors and stressed the need to increase institutional participation.
He said BSEC would seek to expand opportunities for provident funds and other institutional funds to invest in stocks as well as 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.
Floor price removal
Referring to the removal of the floor price after he assumed office, Masud said the move had helped Bangladesh move towards the withdrawal of special measures imposed by global index provider MSCI.
He said MSCI had indicated that regular reviews of Bangladesh’s index and implementation of corporate events would resume from November 2026.
Masud also said BSEC was working to strengthen the Dhaka Stock Exchange, modernise market surveillance and introduce an artificial intelligence-based surveillance system.
He added that initiatives were underway to develop the corporate bond market, including reducing listing fees on the main board to encourage banks and other institutions to raise funds through the capital market.
