Stakeholders push BSEC for fast-track listing of state firms to revive market

Market stakeholders have urged the Bangladesh Securities and Exchange Commission (BSEC) to expedite the listing of profitable state-owned enterprises, calling on the regulator to present the issue to the newly elected government as a priority to help revive the struggling capital market.

The call came during a monthly coordination meeting held at the commission's headquarters today (5 April), where senior officials, including Chairman Khondoker Rashed Maqsood and other commissioners, met with representatives from various market institutions and stakeholder groups. 

The meeting focused on a wide range of pressing issues affecting the country's capital market, with particular emphasis on increasing the supply of quality stocks.

Participants stressed that the prolonged absence of new listings has significantly weakened investor confidence and reduced market depth. 

Although new initial public offering (IPO) regulations have already been introduced, they noted that the pipeline of fresh listings remains thin. In this context, the listing of profitable government-owned companies was identified as one of the most effective ways to inject momentum into the market.

Saiful Islam, president of the DSE Brokers Association of Bangladesh, told The Business Standard that the market has been in decline for an extended period and requires immediate intervention.

He said initiatives to list state-owned enterprises had been taken during the interim government's tenure, with some preparatory work already completed. With a new government now in place, he urged the regulator to act swiftly to move the process forward.

Highlighting a specific case, he pointed to Central Depository Bangladesh Limited as a profitable institution that continues to generate strong earnings from its core operations but remains unlisted.

He called for expedited steps to bring the company to the market, saying such a move would enhance transparency and offer investors access to a fundamentally strong entity.

Governance reforms, market development

Another key issue raised at the meeting was the long-pending review of the demutualisation scheme of the Dhaka Stock Exchange. 

Stakeholders expressed concern over the lack of visible progress in revisiting the framework, which they said is essential for improving governance and operational efficiency at the bourse. 

In response, the BSEC chairman assured participants that the commission would take necessary steps in this regard.

The discussion also covered broader reform initiatives, including efforts to upgrade the market from frontier to emerging status, implementation of electronic know-your-customer (e-KYC) systems, and plans to launch a commodity exchange.

Participants stressed the need for stronger coordination among market institutions, improved corporate governance, and stricter measures to prevent manipulation and irregularities.

They also discussed expanding investor education programmes, introducing new financial products, and ensuring the accuracy of price-sensitive information disclosures.

Addressing investor protection, stakeholders highlighted the importance of compensating affected investors through dedicated protection funds, as well as resolving issues related to negative equity and unrealised losses.

During the meeting, the BSEC Chairman Maqsood reiterated the commission's commitment to ongoing reforms, noting that major regulatory frameworks – including new margin rules, mutual fund regulations, and public offering rules – have already been introduced.

He added that corporate governance regulations are in the pipeline and will be finalised soon.

The chairman said bringing large public-interest companies into the capital market remains a top priority for the regulator, but achieving this would require strong government support and cooperation from all relevant stakeholders.