BSEC seeks bank investment scheme extension, unveils major IPO overhauls

The Bangladesh Securities and Exchange Commission (BSEC) has formally urged Bangladesh Bank to extend the duration and expand the size of the special capital market investment fund scheme for commercial banks, proposing to elevate the individual allocation ceiling from Tk200 crore to Tk300 crore per bank to inject sustained liquidity and stabilise market volatility.

Speaking as the chief guest at a seminar, "Digital Deception and Scam Alert" at the Dhaka Stock Exchange (DSE) auditorium, BSEC Chairman Masud Khan emphasised that navigating economic challenges requires comprehensive structural reforms rather than short-term fixes.

Masud Khan said the scheme is set to end on 30 November, and it is a serious issue for the capital market, as we heard that some banks are feeling concerned about the extension. If the scheme tenure is not extended, then the market will suffer.

Detailing the commission's sweeping reform agenda, he announced that the BSEC is finalising comprehensive amendments to Initial Public Offering (IPO) rules to ensure absolute transparency.

The revised framework introduces stringent audit verification mandates, requiring independent external auditors to verify financial statements rigorously to eliminate false reporting, he said.

Acknowledging the extended gestation periods inherent to heavy capital-intensive sectors, the BSEC chairman said the amended rules will accommodate large-scale infrastructure projects, power plants, and mega industrial units by allowing them to apply for IPOs despite accumulated initial losses.

Besides, the commission is raising the loan repayment ceiling for IPO proceeds, enabling fundamentally sound, over-leveraged enterprises to restructure their balance sheets effectively, Masud said.

The BSEC chairman further said the regulatory overhaul extends deeply into the mutual fund sector, shifting away from rigid closed-end structures to champion open-ended funds in line with global standards.

To broaden retail market penetration, the commission is introducing certified mutual fund agents modelled on international insurance broker frameworks, he said.

The discussions also confronted the rising menace of cyber deception and digital scams. DSE Chairman Mominul Islam warned that although seamless information flow drives capitalist markets, social media exploitation and Ponzi-style double-money traps severely undermine public trust and exploit investor vulnerabilities.

Echoing these concerns, DSE IT General Manager Abu Nur Mohammad Hasanul Karim detailed how scammers leverage artificial intelligence, deepfakes, and cloned brokerage platforms to execute cyber fraud, urging market participants to practice rigorous verification, multi-factor authentication, and institutional reporting.

BSEC Commissioners Nafeez Al Tarik and Nahid Mahtab further cautioned investors against unrealistic high-return schemes.

Mahtab noted that cyber fraudsters routinely impersonate regulatory bodies and licensed brokerages using AI-generated media across social networks, necessitating advanced market surveillance that looks beyond isolated transactions to detect coordinated manipulative intent.

Concluding the seminar, market leaders stressed that combining progressive regulatory measures, enhanced digital vigilance, and extended banking liquidity support will successfully fortify investor confidence and cultivate a resilient, transparent capital market in Bangladesh.