The Bangladesh Securities and Exchange Commission (BSEC) has begun consultations on overhauling the country’s initial public offering (IPO) rules, seeking to streamline disclosures, strengthen accountability and improve investor protection as part of a broader effort to restore confidence in the capital market.
At a high-level meeting chaired by BSEC Chairman Masud Khan on Wednesday, the regulator reviewed proposed amendments to the Bangladesh Securities and Exchange Commission (Public Offer of Equity Securities) Rules, 2022, which govern public share offerings.
The proposed reforms aim to modernise the IPO framework by strengthening disclosure requirements, improving regulatory oversight and streamlining the listing process while maintaining rigorous scrutiny of companies seeking to raise funds from the public, according to the commission.
The discussions focused on improving the quality and reliability of financial statements and audits, clarifying the responsibilities of issuers, issue managers and auditors, refining IPO pricing mechanisms and reviewing provisions relating to direct listings, rights issues and the listing of public interest entities.
The consultation is part of the commission’s wider capital market reform agenda aimed at attracting higher-quality listings, improving market governance and aligning Bangladesh’s public issue framework with international standards.
Stakeholders also shared recommendations on practical challenges under the existing IPO regime, while the commission said their feedback would be considered in future policy and legal reforms.
Stakeholders said the latest versions of the rules, including the one formulated during the interim government, were too tight and these were discouraging deserving companies from going public.
The meeting was attended by BSEC commissioners Tanwir Habib Rahman, Nahid Mahtab and Md Nafiz Al Tarik, alongside senior officials of the regulator.
Representatives from the Financial Reporting Council, the Institute of Chartered Accountants of Bangladesh, the Dhaka Stock Exchange, the Chittagong Stock Exchange, the DSE Brokers Association of Bangladesh, the Bangladesh Merchant Bankers Association, the Bangladesh Association of Publicly Listed Companies, CFA Society Bangladesh and leading investment banks also participated.
