Firms to get retrospective benefits from IPO reforms

The Bangladesh Securities and Exchange Commission (BSEC) has asked companies to apply for initial public offerings (IPO) under the existing rules, assuring them that they will receive the benefits of any new rules once regulatory reforms are completed.

In a press release issued yesterday, the capital market regulator advised businesses not to suspend or delay their listing plans while waiting for proposed changes to the rules.

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The commission said that once reforms, modifications or regulatory relaxations to the IPO framework are finalised, the benefits and provisions of the new rules will be extended to existing applicants where applicable.

At present, companies seeking to raise fresh capital are governed by the Bangladesh Securities and Exchange Commission (Public Offer of Equity Securities) Rules, 2025.

The latest assurance is aimed at preventing delays in the pipeline of companies seeking to enter the stock market and keeping the listing process moving while the rules are being revised.

The BSEC also highlighted another route for established companies that do not need fresh capital but want to provide a way for existing shareholders to sell their shares.

For this, the BSEC has published the draft Bangladesh Securities and Exchange Commission (Direct Listing of Securities on the Stock Exchange) Rules, 2026 for public feedback.

Once the rules are gazetted, eligible companies will be able to list on the stock exchanges by selling shares held by existing shareholders. They will not need to issue new shares or raise money from the public.

“Companies needing new capital can enter the market through an IPO, while established firms seeking to offload existing equity can leverage direct listing,” the commission said, adding that it will continue pursuing comprehensive policy and regulatory reforms to foster a deep, transparent, and efficient capital market in Bangladesh.