BSEC Chairman Announces Capital Market Reforms at DBA Open Discussion

On August 31, 2026, in Dhaka, the Bangladesh Securities and Exchange Commission (BSEC) chairman, Masood Khan, announced sweeping capital market reforms during an open discussion hosted by the Dhaka Stock Exchange Brokers Association of Bangladesh (DBA). The event, organized by the DBA, brought together stakeholders to discuss the current state and future actions required for the development of the country's capital market. During the session, the BSEC chairman detailed several regulatory changes aimed at streamlining the listing process for companies.

Addressing the gathering, Masood Khan specifically highlighted upcoming changes to company listings. He stated, "Direct listing regulation will be approved by us in the commission meeting tomorrow (Tuesday). The day after tomorrow, we will send it for public opinion. Its advantage is that a company will no longer have to go through the IPO process. The company can be directly listed by offloading its specific shares." He added that many reputable companies are showing interest in coming under direct listing, expressing high optimism that within the next six to twelve months, several companies that have already announced their intention or are in the process will be seen on the market, a transition expected to take place very quickly within two to three months.

Further elaborating on the regulatory framework, Masood Khan noted that the initial public offering rule is targeted to be released within the next month, alongside the introduction of a hybrid listing system. Explaining the mechanism, he mentioned that a company can combine both an IPO and direct listing if it wishes, and assured that the board will introduce the hybrid system within a week, Inshallah. Furthermore, he pointed out that under Section 20A of the securities laws, the commission possesses the authority to direct any company to enter the stock market in the public interest.

Discussing infrastructural developments and operational timelines, the BSEC chairman remarked that although an institution named Central Counterparty Bangladesh Limited (CCBL) was previously established in Bangladesh, its operations had not been effectively initiated until now. He also stated that efforts will be made to transition to the T+1 settlement system by the end of the year.

Addressing market monitoring and trading practices, Masood Khan clarified that the commission monitors the market every day but does not interfere in any way. He emphasized that up to now, no brokerage house has been called by the BSEC, and no such calls will be made in the future either. Regarding trading behavior, he observed that placing a large order in itself is not an illegal act, but consistently placing large buy and sell orders to engage in series trading constitutes a crime.