BSEC urges firms to prepare for direct listing

The regulator is urging eligible companies to prepare for listing under its proposed direct-listing rules, which have been published for public consultation.

The Bangladesh Securities and Exchange Commission (BSEC) has urged eligible companies interested in entering the stock market under a proposed direct listing framework to begin preparations for listing.

The initiative is aimed at established companies that do not require fresh capital for business expansion or operations but want to access the capital market.

Under the proposed framework, these companies would not issue new shares to raise funds from general investors. Instead, their existing shareholders would be allowed to sell shares through the stock exchange.

The BSEC has already drafted the Bangladesh Securities and Exchange Commission (Direct Listing of Securities on the Stock Exchange) Rules, 2026 and published the draft for public consultation.

The proposed rules are intended to provide an alternative route for established companies to list on the stock market without raising fresh capital through an initial public offering.

According to the proposed rules, companies meeting the prescribed eligibility criteria would be able to apply for direct listing.

The regulator is encouraging companies that fall within the proposed framework and are interested in listing to take the necessary preparations in advance. This would enable eligible companies to move forward with the listing process once the proposed rules come into effect.

Under the proposed mechanism, a company itself would not raise fresh funds through the listing process. Rather, existing shareholders would get an opportunity to sell or offload their holdings through the stock exchange.

At present, companies seeking to raise funds from the capital market can enter through an initial public offering (IPO). However, established companies that do not require fresh capital but want to become publicly traded would have an alternative route under the proposed direct-listing framework.

The BSEC expects the proposed system to increase the participation of new and capable companies in the capital market. It would also create an opportunity for existing shareholders to offload their shares and help expand the depth and breadth of the market.

The proposed framework could therefore allow companies with different capital requirements to choose different routes to the stock market. Companies requiring fresh capital could use the IPO process, while established companies that do not need additional funds could potentially opt for direct listing.

The BSEC said the draft ‘Bangladesh Securities and Exchange Commission Rules, 2026’ would be made effective soon through gazette notification.

The regulator said it is continuing policy and regulatory reforms to expand listing opportunities and encourage more capable companies to participate in the capital market, with the aim of developing a deeper, more diversified, transparent and efficient market.

Source: The Business Standard