The Bangladesh Securities and Exchange Commission (BSEC) has set a target of approving initial public offerings (IPOs) within a maximum of three months of application under the new rules, aiming to cut long delays in the process.
"To resolve the IPO crisis in the capital market, the time taken for IPO approval will be significantly reduced under the new process. We will definitely approve IPOs within three months," BSEC Chairman Masud Khan said Sunday.
He made the remarks at the inaugural ceremony of World Investor Week 2026 at the Krishibid Institution Bangladesh (KIB) auditorium in the capital.
Masud Khan said that after taking charge, the commission identified complexities in the IPO rules and moved to reform them. "The new IPO rules will ensure the entire process, from application to approval, is completed swiftly."
The Dhaka Stock Exchange (DSE), the Chittagong Stock Exchange (CSE) and the BSEC will carry out their related activities in a coordinated manner, which the commission believes will reduce the time spent at different stages after a company applies for an IPO.
"A two-year drought, an IPO drought, cannot be allowed to continue for long," the BSEC chairman said, stressing the need for quick steps to end the prolonged absence of new companies in the market.
He said direct listing will also be allowed for bringing new companies to the market, though eligibility criteria will be stricter than before.
Only highly qualified and strong companies will get the opportunity, he added, which will help bring quality firms to the market while protecting investors' interests.
To attract multinational and large local companies, a new hybrid method will also be introduced alongside direct listing. "Under it, a portion of shares will be offered to the public, while the rest will be floated through the sale of existing owners' shares," Masud said.
Highlighting the commission's reform measures, the BSEC chairman said one of its key decisions after assuming office was scrapping the floor price.
He said Bangladesh's position in the index of global index provider MSCI was hurt after the floor price was introduced in 2023. "The withdrawal was aimed at restoring foreign investors' confidence."
Referring to steps concerning Beximco, he said the board of the company has been reconstituted and other necessary measures taken. "Through these steps, efforts are under way to rebuild investor confidence in the capital market."
Masud Khan said greater emphasis is being placed on digitisation to protect investors and boost confidence in the market. "Initiatives are being taken to bring the back-office software of brokerage houses under an integrated system with real-time connectivity, enabling the regulator to view brokers' accounts and bank balances at any given time."
He said an order management system will be introduced, with a shift from paper slips to automated processes. In his words, digitisation is now the "new currency" in the capital market.
The BSEC chairman said steps are also being taken for quick resolution of investors' complaints and cases. Necessary amendments, harmonising the securities law and the relevant ordinance, have been sent to the ministry for final approval. Once enacted, the commission is expected to be able to file cases directly within its own timeframe.
BSEC is also focusing on developing the bond market. He said bonds worth around Tk 3,000 crore have been approved since he took office, but issuers have been required to be listed on the main board.
He said the bond market needs effective linkage with the stock market, and initiatives are being taken to expand various types of bonds, including green bonds.
Masud Khan said there is ample scope to increase institutional investment in the capital market. "Policy initiatives may be taken in future to allow a portion of pension funds, gratuity funds and insurance company money to be invested in corporate bonds and shares."
He described the insurance sector as full of potential, saying it has long remained largely inactive and needs to be made more active in the market. He also stressed developing the mutual fund sector.
The BSEC chairman said Bangladesh's market capitalisation is still low compared to many countries, and increasing it would naturally boost trading volume.
As part of long-term reforms, work is also under way on a derivatives market, a review of the effectiveness of credit rating agencies, and improvement of the clearing and settlement system, he said.
Masud Khan said the BSEC does not want to confine World Investor Week programmes to a single week.
Work to raise investor awareness, rebuild confidence in the market and improve its structure will continue, he added.