The Dhaka Stock Exchange (DSE) plans to bring at least 10 quality blue-chip companies, including state-owned, multinational and domestic firms, to the capital market through direct listing by 2027 as the exchange seeks to address a prolonged shortage of new listings.
DSE Chairman Mominul Islam announced the target at a press conference at the exchange’s Nikunja office in Dhaka on Tuesday, saying a draft regulation for direct listing had already been prepared.
“Good IPOs have not entered the market for more than two years and no new companies have been listed,” Mominul said, adding that the proposed regulation would create opportunities for government-owned, multinational and local companies to enter the capital market.
The DSE is also working on a new regulation to simplify the initial public offering (IPO) process, which could be published for public consultation within the next two to three weeks.
Companies applying for direct listing or IPO by March 2027 will receive a 50 per cent waiver on listing fees, Mominul said. Listing fees for bonds have also been reduced significantly.
The DSE is also taking steps to attract more foreign investment to the capital market. Mominul said the government had already taken initiatives to bring foreign institutions and internationally recognised investment banks to Bangladesh.
The entry of global investment banks could make it easier for domestic corporations to access the capital market, he said.
Although the country’s macroeconomic situation remains under pressure, it is gradually stabilising, Mominul said. He added that progress in bringing new securities to the market and attracting foreign investment would be important for sustaining the market’s short- and long-term momentum.
DSE to compensate affected investors
Meanwhile, the DSE will begin distributing Tk37.60 crore from its Investor Protection Fund to 17,332 investors affected by five defaulting brokerage firms from 28 September.
The firms are Moshihor Securities, Tamha Securities, Crest Securities, Shah Mohammad Sagir & Co Ltd and Banco Securities. According to DSE data, the firms allegedly misappropriated more than Tk250 crore.
Each affected investor will receive a maximum of Tk5 lakh against verified claims, Mominul said.
“It will take a little more than two months to complete the entire distribution process,” he said.
Four cases involving misappropriation of investors’ funds are under investigation by the Anti-Corruption Commission, while another case is pending before a court.
Mominul said regulatory supervision and monitoring had been strengthened to prevent brokerage firms from defaulting in the future.
Exchange plans market upgrades
DSE Managing Director Nuzhat Anwar said the exchange had started work on script netting and a T+1 settlement system, targeting their introduction by December 2026.
“We have started working on script netting and T+1. We are receiving sufficient support and good guidelines from the BSEC. We will try to introduce both by December 2026,” Nuzhat said.
The DSE is also working to introduce financial derivatives by January 2028. Before launching the products, it will focus on investor awareness, financial literacy and upgrading the necessary systems, Nuzhat said.
Work on industrial-sector classification and categorisation is nearing completion, with the proposal to be shared with the Bangladesh Securities and Exchange Commission (BSEC) after approval by the DSE board.
The exchange is also developing a separate platform for open-ended mutual funds, expected to be launched by mid-November. The platform would allow investors to buy and redeem different mutual funds while improving market discipline, investor confidence and ease of transactions.
The DSE has reduced various charges related to bond issuance by around 80 per cent as part of efforts to develop the bond market, Nuzhat said.
She said the BSEC was encouraging future bond issues to be listed on the main board, while the DSE was encouraging institutional investors to become more active in bond trading, particularly in the secondary market.
On technology development, the DSE has started a project to introduce Nasdaq’s new software-based matching engine, targeting a January 2028 launch.
The project is progressing according to plan. The exchange is also working to update its disaster recovery system by December, Nuzhat said.
The DSE is prioritising software improvements to make the capital market’s IT infrastructure more accountable and transparent.
Mominul said the DSE, Central Depository Bangladesh, Central Counterparty Bangladesh and other relevant institutions need to work together to make the capital market more efficient and transparent. Several meetings have already been held at the DSE to accelerate the process.
