Multinational companies (MNCs) doing business in Bangladesh will have to come to the capital market, Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan said on Friday.
The securities regulator will initially encourage large local and multinational companies to list voluntarily, but it also has the legal authority to compel them to do so in the public interest, he said.
“We will encourage them to come voluntarily. But if they do not, we also have the weapon in our hands,” Mr Khan said.
He was speaking at the opening of a two-day workshop on ‘Capital Market Products and Rules’ organised by the BSEC for members of the Capital Market Journalists Forum (CMJF) at Subarna Gram in Narayanganj.
Mr Khan said Bangladesh has many large local and multinational companies, and bringing such companies to the market is essential for the development of the capital market.
The commission will seek to bring several large and flagship companies to the market within the next six months to one year, he said.
The BSEC chairman said securities laws provide scope for directing certain companies to list in the public interest. The definition of Public Interest Company (PIC) will also be incorporated into the law to facilitate such measures.
Mr Khan urged large companies to consider listing, saying it would strengthen their corporate image and establish a market-based valuation.
Such valuation could help companies in acquisitions and mergers, while existing shareholders could exit their businesses more easily by selling shares through the stock market, he said.
He also highlighted succession-related problems faced by family-owned businesses.
With generational changes, disputes among owners often lead to the fragmentation of private businesses. Listing can provide an exit route for shareholders who no longer want to remain involved in the business, he said.
The BSEC is also working to introduce direct listing and a hybrid listing mechanism to bring large companies to the market more quickly.
The conventional IPO process often takes a long time, Mr Khan said, adding that direct listing would allow quality companies to enter the market faster.
Under the proposed hybrid mechanism, a company would be able to raise fresh capital through an IPO while listing some portion directly listing existing shares through another.
The BSEC chairman said the commission is planning to introduce an ‘extended audit’ mechanism to streamline the IPO process.
Under the proposed system, auditors would not only verify the accuracy of financial statements but also physically verify a company's land, machinery, inventories, receivables and supplier information.
Auditors would certify the authenticity of assets and financial information submitted by IPO applicants, which would help speed up the IPO scrutiny process at the Dhaka Stock Exchange (DSE), he said.
Mr Khan said Bangladesh's capital market remained heavily dependent on retail investors, making increased institutional participation essential for a more sustainable market.
The BSEC plans to expand investment opportunities for provident funds and other institutional funds in equities as well as corporate bonds.
In developed markets, pension funds and insurance companies are major institutional investors. Similar participation needs to be developed in Bangladesh, he said.
Referring to the withdrawal of the floor price after he assumed office, Mr Khan said the move had helped Bangladesh's market move towards normalisation in the treatment of global index provider MSCI.
MSCI has indicated that regular index reviews and implementation of corporate events for Bangladesh are expected to resume from November 2026, he said.
The BSEC is also working to further empower the DSE, modernise market surveillance and introduce an artificial intelligence-based surveillance system, according to the chairman.
On the development of the corporate bond market, Mr Khan said the commission was working to reduce listing fees for the main board.
