The Bangladesh Securities and Exchange Commission (BSEC) plans to expedite initial public offerings (IPOs), attract institutional investors and bring more large companies to the stock market, its Chairman Masud Khan said on Saturday.
Speaking at the IDLC Capital Market Conclave at a city hotel, he said retail investors account for nearly 90 per cent of market participants in Bangladesh, highlighting the need to boost institutional participation.
The commission is working to bring pension funds, gratuity funds and life insurance companies into the capital market. It is also seeking to expand open-ended mutual funds and simplify their distribution process.
Mr Khan said the regulator was reforming the IPO approval process, which has historically taken 18 to 24 months. The proposed reforms include greater accountability for statutory auditors, simplified valuation requirements and the introduction of a Dutch auction system for public offerings.
The BSEC has raised the eligibility threshold for direct listings from Tk 5 billion to Tk 10 billion in annual turnover or total asset value. It has also approved around Tk 3.5 billion worth of high-grade asset-backed corporate bonds and directed that corporate bonds be traded on the main board.
The regulator is also working to revive Central Counterparty Bangladesh Limited, introduce artificial intelligence-based market surveillance and formulate regulations for derivatives trading and regulated short selling.
Mr Khan said net foreign purchases reached Tk 700 billion in September, stressing that Bangladesh needed to expand its market capitalisation and attract more large companies to the bourse to improve its position in international market indices.
He urged large domestic businesses and multinational companies to list voluntarily, warning that securities laws empower the commission to require certain companies to join the stock market.
Source: The Business Standard
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