In an effort to revitalise the capital market, the Bangladesh Securities and Exchange Commission (BSEC) held a meeting with the Ministry of Power, Energy and Mineral Resources to explore the direct listing of profitable state-owned enterprises (SOEs) from the power and energy sector.
The meeting, held on Monday at Rail Bhaban in Dhaka, was part of implementing directives given by the chief adviser during a high-level meeting earlier in May this year aimed at strengthening the market, according to the BSEC press release.
Present at the meeting were Fouzul Kabir Khan, adviser to the Ministry of Power, Energy and Mineral Resources; Rezaul Karim, chairman of the Bangladesh Power Development Board (BPDB); Khondoker Rashed Maqsood, chairman of BSEC; and BSEC Commissioner Mohsin Chowdhury.
The BSEC said discussions focused on bringing financially sound and profitable government-owned entities from the energy sector directly to the capital market through the direct listing method – bypassing the traditional IPO route.
BSEC emphasised that listing fundamentally strong SOEs would inject fresh dynamism into the market, broaden investment opportunities, and enhance investor confidence. The regulator also noted that it is working proactively with relevant agencies to ease the procedural bottlenecks for such listings.
The high-level meeting, held on 11 May at the official residence of the chief adviser, reviewed the state of the market and identified strategic interventions. Following the session, the chief adviser issued a set of directives to accelerate market reforms and improve liquidity.
In response, BSEC has undertaken a number of initiatives, including engaging with ministries and regulators, to implement those instructions effectively.
Officials at the meeting expressed optimism that listing top-performing state-run power and energy companies would pave the way for greater transparency, improved corporate governance, and long-term investor participation in the capital market.
Source: The Business Standard
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