Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan has unveiled a sweeping reform agenda to reposition the capital market from a frontier structure towards an emerging market through deregulation, digitalisation, stronger enforcement, deeper institutional participation and an expanded base of quality listed securities.
Speaking at his inaugural press briefing on Thursday, Khan said the commission assumes office at a “critical juncture” marked by earlier growth phases alongside structural weaknesses that have eroded investor confidence, discouraged quality listings, reduced foreign participation, weakened mutual funds and constrained the capital market’s role in the broader economy.
He said investors have incurred losses, strong corporates remain outside the market, foreign investors have turned cautious and the mutual fund industry has failed to sustain trust, despite two decades of macroeconomic expansion without matching capital market depth.
The objective, Khan said, is to build a “credible, transparent and institutional investment-driven” market capable of mobilising long-term domestic and foreign capital for sustainable growth.
Regulation will shift to a principles-based and risk-based framework, he said, with a comprehensive review of reporting obligations, approvals, filings and compliance requirements to cut costs and complexity while maintaining investor protection.
Interim financial reporting and quarterly disclosures will be reassessed under IAS 34 to reduce excessive compliance burden without diluting transparency.
“We will regulate where necessary and simplify where possible,” he said.
Digitalisation, Khan said, will anchor reforms across the entire ecosystem, covering regulatory reporting, corporate disclosures, licensing, approvals, surveillance, enforcement and investor services.
IPOs, rights issues, bond and sukuk issuance and all filings will progressively move to integrated digital platforms to improve speed, efficiency and transparency.
On market structure, he said Bangladesh faces a persistent shortage of quality listed securities as multinational companies, large domestic corporates, state-owned enterprises and high-growth firms remain outside the market.
The commission will engage these entities to expand listings and introduce a transparent direct listing framework to broaden the investable universe.
Listing must become more attractive than staying private, Khan said, adding that BSEC will work with the government and National Board of Revenue to introduce a “Listed Company Advantage Programme” featuring differentiated tax treatment, simplified tax administration, reduced compliance duplication, faster approvals, streamlined dispute resolution and easier capital raising.
“A good company should find listing more attractive than remaining privately held,” he said.
Institutional participation will be strengthened to reduce reliance on retail investors, he said, with reforms targeting pension funds, provident funds, insurers and mutual funds.
Governance, transparency, valuation practices and oversight in the mutual fund industry will be tightened to rebuild investor confidence.
On foreign investment, Khan said capital inflows bring not only financing but also governance discipline and global credibility. Concerns over disclosure standards, profit repatriation and market practices will be addressed through structured reforms and sustained engagement with global investors and regulators.
Surveillance and enforcement will be significantly strengthened through a coordinated system involving BSEC, Dhaka Stock Exchange, Chittagong Stock Exchange and Central Depository Bangladesh Ltd, supported by real-time monitoring tools.
Enforcement will initially focus on Z category securities, while insider trading, manipulation, wash trading, pump-and-dump schemes and other violations will face faster detection and tougher penalties.
He said enforcement will be guided by fair price discovery and equal access to information, not price control. “We are not here to control the market. We are here to ensure fairness,” he said.
Investor protection will remain central, with stronger disclosure standards, improved grievance redress mechanisms and expanded investor education. Floor prices, he said, will never come back.
Khan said success will be measured by outcomes rather than announcements, stressing that trust must be rebuilt through fairness, transparency and accountability.
“Our goal is not only regulation. Our goal is trust,” he said, adding that without trust there can be no investment and no sustainable capital market.
Reforms will follow a clear sequencing: smarter regulation, digital transformation, expansion of quality listings, stronger institutional participation, increased foreign investment, enhanced surveillance and enforcement and continuous governance improvement, aimed at a market that is fair, attractive, credible and globally respected, he added.
