United News of Bangladesh

The Bangladesh Securities and Exchange Commission (BSEC) has taken an initiative to introduce licensed agents to promote mutual funds, aiming to expand investment opportunities and increase participation of retail investors in the capital market, its Chairman Masud Khan said on Monday. "Initiatives have also been taken to reform the initial public offering (IPO) policy, frame rules for direct listing and introduce new investment products," he said at a seminar held at the multipurpose hall of the Dhaka Stock Exchange (DSE) Tower in Nikunja marking "World Investor Week 2026." The BSEC chairman said the draft of the reformed IPO policy will be published within a couple of days to seek public opinion. The DSE and the DSE Brokers Association of Bangladesh (DBA) jointly organised the event. Masud said work is underway on several important initiatives, including IPO policy reform, to develop and deepen the capital market. "Rules for direct listing are also being framed, along with steps to promote open-end mutual funds and launch new investment products." Once implemented, these initiatives will expand capital market operations and widen investment opportunities, he said. Disclosing the plan to introduce licensed agents for the mutual fund sector, the BSEC chairman said arrangements are being made to provide short-term training and certification through the Bangladesh Institute of Capital Market (BICM). "Those who receive the training and certificates will be able to work as mutual fund agents." He said opportunities must be increased for general investors to invest in professionally managed mutual funds instead of buying shares directly. "For this, emphasis is being given to expanding the institutional capacity and activities of the sector." Citing India as an example, Masud said licensed mutual fund agents there play an important role in delivering fund services to investors. "The commission believes that introducing a similar system in Bangladesh could increase public participation in mutual funds." On the IPO policy reform, he said the initiative aims to make the listing process for new companies more effective and investor-friendly. "Views of stakeholders will be sought after the draft of the proposed policy is published." The BSEC chairman said investors must review a company's financial statements, cash flow from operations and actual financial strength before investing in an IPO. To protect investors' interests, emphasis must be given to verifying financial information and analysing fundamentals, he added. Masud also urged investors to refrain from making investment decisions based on promises of abnormal profits or unverified information. He said regulators, stock exchanges, the media and investors must work together to ensure transparency, accountability and investor confidence in the market. According to the BSEC chairman, to make the country's capital market more effective and sustainable, it is necessary to increase alternative investment avenues and deepen the market.  Development of mutual funds, introduction of new investment products and reforms in the listing process can play an important role in this regard, he said. The introduction of mutual fund agents will make it possible to deliver professional investment management to investors, while the IPO policy reform and framing of direct listing rules are aimed at making the entry of new companies into the market more effective, Masud added.

Dhaka Stock Exchange (DSE) Chairman Mominul Islam on Monday warned that investors are being defrauded through fake investment offers, misinformation and promises of doubling their money in a short time on social media. "Investors are suffering financial losses due to these scams, which are run using the logos of stock exchanges and financial institutions," he said at a seminar titled "Digital Deception and Scam Alert" held at the DSE Tower in the capital's Nikunja area. Mominul said public confidence in the capital market is also being eroded, stressing the need for modern surveillance, enforcement of laws, greater investor awareness and stronger communication to tackle the situation. The DSE and the DSE Brokers Association of Bangladesh (DBA) jointly organised the seminar as part of "World Investor Week 2026." The DSE chairman said a key condition for ensuring effective information flow in the capital market is delivering timely, accurate and complete information to investors. “However, with the spread of social media, digital fraud has emerged as a new challenge.” Using the logos of stock exchanges and various financial institutions, many people are posing as registered or licensed financial analysts, he said, adding that such moves are aimed at misleading and influencing investors. Unrealistic promises, such as turning Tk 1 lakh into Tk 2 lakh within two weeks, are being used to lure people into traps, Mominul said. Fraudsters are running various scams, including Ponzi schemes, by exploiting people's desire to get rich quickly, he said, noting that social media has spread such frauds far more widely than before. The DSE chairman further said a huge volume of information unrelated to market fundamentals is circulating on social media. “Some individuals, in the name of technical analysis, are making remarks about the market that have no connection to its fundamentals.” "Vested quarters may be behind such activities," he said, adding that investors are being confused and there is a risk of disruption to the normal functioning of the market. Mominul said the DSE has taken steps to modernise its surveillance and monitoring systems. It is also moving to make investor awareness programmes more effective in coordination with the Bangladesh Securities and Exchange Commission (BSEC), he said. Preventive measures alone cannot stop digital fraud, the DSE chairman said, adding that credible information and positive messages must also be presented to counter misleading campaigns. For this, he stressed building strong brokerage houses, merchant banks and asset management companies in the capital market, saying their institutional capacity and governance must be improved while also focusing on earning public trust. Mominul underlined the need for collective efforts to develop the capital market as a strong and effective pillar of the economy. Effective surveillance, greater awareness and a robust communication system must be built to combat digital fraud and restore investor confidence, he added.

Dhaka Stock Exchange Brokers Association of Bangladesh (DBA) has urged Bangladesh Bank to raise the ceiling of its special fund facility for the capital market from Tk 200 crore to Tk 300 crore per scheduled bank and extend its tenure by another five years, until November 30, 2031. The brokers' body said the move is needed to tackle the prevailing liquidity crisis in the stock market, boost institutional investment and strengthen investor confidence. In a statement issued Wednesday, the DBA said it submitted a formal letter on Tuesday to Bangladesh Bank Governor Mostaqur Rahman. A copy of the letter was also sent to Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan. According to the DBA, the special fund facility introduced by Bangladesh Bank for investment in and development of the capital market has played a positive role in enhancing institutional investment capacity, improving market liquidity and stability, and restoring investor confidence. At present, each scheduled bank can create a special fund of up to Tk 200 crore. However, the current tenure of the facility is set to expire on November 30, 2026. The DBA said that, given the existing liquidity crisis in the capital market and global uncertainty stemming from ongoing tensions in the Middle East, the facility should be strengthened rather than withdrawn. The DBA said raising the limit and extending the tenure would increase institutional investment, improve market liquidity and depth, and bolster investor confidence. It would also play an important role in the long-term and sustainable development of the capital market, the association added. The DBA expressed hope that Bangladesh Bank would take the necessary steps to raise the ceiling to Tk 300 crore and extend the tenure until November 30, 2031, considering the current market situation and broader national economic interests. The association also reaffirmed its commitment to work in coordination with Bangladesh Bank and other relevant regulators, as it has in the past, to implement the government's capital market development initiatives and to extend necessary cooperation. 

Bangladesh Securities and Exchange Commission (BSEC) has decided to give no objection to the reconstitution of the boards of Bangladesh Export Import Company PLC (Beximco) and Shinepukur Ceramics PLC, subject to the withdrawal of a related case. The decision came at the commission's 1032nd meeting held at its Agargaon office in Dhaka and chaired by BSEC Chairman Masud Khan, according to a press release issued Wednesday. The commission said it took the decision after being informed, through a letter from its panel lawyer of the High Court's verbal directive, and after considering the interests of investors and other relevant issues. Beximco On the company's application, the commission also approved a seven-member board, comprising: ASF Rahman as chairman (sponsor), OK Chowdhury as managing director, Iqbal Ahmed, Ajmal Kabir and Quamrun Nahar Ahmed as directors, all nominated by the sponsor group, Shah Monjurul Hoque as independent director. One more independent director will be appointed in line with the Corporate Governance Code, 2018. Shinepukur Ceramics Responding to the company's application, the BSEC agreed to a seven-member board. The proposed structure includes: ASF Rahman as chairman (sponsor), OK Chowdhury, Iqbal Ahmed, Ajmal Kabir and Quamrun Nahar Ahmed as directors, all nominated by the sponsor group. Two independent directors will appointed in compliance with the Corporate Governance Code, 2018 For both companies, the commission also decided that its earlier orders, dated December 31, 2024 and January 15, 2026 will be withdrawn once the companies withdraw the case.

Bangladesh is preparing to issue sovereign bonds in the international capital market for the first time, aiming to raise up to US$ 1 billion within the next three months, according to official sources. The government is currently in the process of appointing global financial services firm JPMorgan Chase & C. as the issue manager for the debut bond, which is targeted for release by December this year. A Bangladeshi delegation recently held meetings with institutional investors in several European countries and in New York of the USA. A Bloomberg report noted that around 15 major global investment firms, including BlackRock, Pacific Investment Management Company (PIMCO), Texas Pacific Group (TPG), Macquarie, GoldenTree Asset Management and MetLife, have shown preliminary interest in the country's upcoming sovereign bond. "Investor interest in our sovereign bond is extremely high," Tanvir Shahriar Ghani, special assistant to the Prime Minister on investment and capital market affairs, has recently said. He heads a high-level committee formed by the Ministry of Finance in July to assess the feasibility of the issuance. Tanvir, however, added that further discussions are necessary before finalising the bond's structure, interest rates, and legal aspects. "The government is closely monitoring the rising cost of borrowing in global markets, and the final decision will be made after evaluating investor rate expectations," he said. If successful, the initiative will establish Bangladesh’s sovereign debt pricing benchmark in global capital markets for the first time, opening up direct foreign currency market-based financing in the future. Strategic shift in foreign financing: Historically, Bangladesh has relied heavily on concessional financing from multilateral development partners, including World Bank, Asian Development Bank (ADB), Japan International Cooperation Agency (JICA) and International Monetary Fund (IMF), as well as bilateral loans. However, changing global interest rate conditions have altered borrowing terms, while Bangladesh faces rising development expenditure, debt repayment obligations, and dollar demand. With the national budget for the current fiscal year set at Tk 9,38,000 crore, a significant deficit must be covered through financing. Entering international debt markets aims to diversify financing sources and position Bangladesh as a regular participant in global capital markets. US$ bonds first, others under evaluation The initial issuance is most likely to be US Dollar-denominated due to higher market liquidity. However, the government is also exploring the possibility of issuing Samurai bonds in Japanese Yen, Panda bonds in Chinese Yuan, Dim Sum bonds in Hong Kong, and Islamic Shariah-compliant Sukuk bonds in the future. Bangladesh Bank has already held discussions with a delegation from the Export-Import Bank of China regarding potential Panda bond issuances. Government officials emphasised that while the initial target is $500 million, the amount could be expanded up to $1 billion if market conditions remain favourable. Nevertheless, the government remains cautious about its overall credit rating, foreign exchange debt servicing capacity, and borrowing costs to prevent overburdening future foreign debt.  

Dhaka Stock Exchange (DSE) will refund up to Tk 5 lakh in full to 17,332 investors who suffered losses from irregularities and embezzlement by brokerage houses, paying out of its Investors Protection Fund (IPF), DSE Chairman Mominul Islam said Monday. Speaking at the DSE's inauguration ceremony for IPF disbursement, Mominul said investing in the capital market can bring both profit and loss, and share price fluctuations are natural. "But when investors suffer because of irregularities by a market intermediary, it seriously damages their confidence in the market. Such incidents are not acceptable in any way," he said. Mominul said several brokerage houses failed to discharge their responsibilities in the past. "Five of them diverted investors' money or shares into their own accounts and later failed to return them.” According to the DSE, 17,967 investors are currently affected. Of them, 17,332 will get their full money, up to Tk 5 lakh each, from the IPF in this phase. For investors who will not receive their full money at this stage, he said, initiatives will be taken to return it quickly. "The DSE and other market stakeholders will work on this through legal means." Expressing regret to the affected investors, the DSE chairman said they had invested their hard-earned money in the market with great hope. He apologised for the mental and financial hardship they endured because of the irregularities. To prevent such incidents in the future, he urged all market stakeholders, including the Bangladesh Securities and Exchange Commission (BSEC), the two stock exchanges, the Central Depository Bangladesh Limited (CDBL) and brokerage houses, to work together. He expressed hope that collective efforts would fully restore investor confidence. He said verifying the information of 17,967 investors and determining their investment records and final balances was a difficult task, which DSE management completed. He expressed hope that the refund process would also be carried out properly. Regarding the fund's sources, Mominul said the main sources are brokerage houses' trade commissions and 25 percent of the interest earned on Customer Consolidated Accounts (CCA). "This DSE initiative would not have been possible without the contribution of brokerage houses." Expressing hope that the positive trend in the country's capital market would strengthen further, he said building a strong and transparent market is a shared goal. All stakeholders must work together to develop the capital market as a key pillar of the economy, he added.

Turnover at the Dhaka Stock Exchange (DSE) crossed the Tk 800 crore mark on Wednesday after 36 days, with shares worth Tk 844 crore changing hands, the highest daily turnover so far this month. The bourse had last seen turnover above Tk 800 crore on August 18, when it stood at Tk 998 crore. Turnover then fell steadily day after day, dropping to the Tk 400 crore range by August 27 in a sharp slide from levels of around Tk 1,000 crore just days earlier. September opened with daily turnover hovering around Tk 500 crore. It touched the Tk 700 crore range on a few occasions but failed to breach Tk 800 crore until this week, rising to Tk 788 crore on Monday and Tk 791 crore on Tuesday before Wednesday's jump. All DSE indices advanced alongside the turnover rebound. The benchmark DSEX rose 55 points, the Shariah index gained 10 points, and the blue-chip DS30 index added 16 points. Prices rose for most listed companies, with 246 advancing against 102 decliners, while 37 remained unchanged. Unique Hotel & Resort PLC topped the gainers' list, with its share price climbing nearly 10 percent, up Tk 4 in a single day, from Tk 40.20 on Tuesday to Tk 44.20 on Wednesday. Mutual funds, however, largely bucked the market's upward trend. Most mutual fund units traded near their lowest levels, with AB Bank 1st Mutual Fund, Reliance One the first scheme of Reliance Insurance Mutual Fund, and ICB AMCL CMSF Golden Jubilee Mutual Fund each losing more than 5 percent to lead the fallers. The Chittagong Stock Exchange (CSE) also posted gains, with its overall index CASPI rising 54 points. A total of 100 companies saw price increases against 71 decliners, while 20 remained unchanged. CSE turnover rose by Tk 5 crore over the previous session, with shares and units worth Tk 24 crore traded on the day, up from Tk 19 crore a day earlier. ICB AMCL Second Mutual Fund, Rupali Insurance Company Ltd and Index Agro Industries Ltd led the gainers on the CSE, each up around 10 percent. On the losing side, Chartered Life Insurance PLC, Continental Insurance PLC and Agni Systems PLC each shed nearly 10 percent.

The Dhaka Stock Exchange (DSE) is planning to launch derivative products in the capital market by January 2028, with regulators stressing that a functional Central Counterparty (CCP) and stronger risk-management infrastructure are prerequisites for the rollout. The plan was discussed on Monday at an event in DSE Tower, introducing financial derivatives in the country's capital market, where officials outlined the roadmap, challenges and preparatory steps needed before trading can begin. Commissioner of the Bangladesh Securities and Exchange Commission (BSEC) Nafeez Al Tarik said it will be difficult to launch derivative operations without an effective CCP in place, adding that the capacity of brokers, traders and other market participants must be enhanced alongside the required technological infrastructure. He noted that international experience shows future markets create opportunities for investors to manage portfolio risks and hedge exposure, with derivatives playing a particularly important role in addressing market liquidity and volatility risks. Nafeez said the commission, exchanges, Central Counterparty Bangladesh Limited (CCBL) and other market stakeholders must work in a coordinated manner to introduce derivatives, adding that the goal would be achieved by ensuring the necessary rules, infrastructure and capacity within the set timeline. DSE Managing Director Nuzhat Anwar said the initiative to introduce new financial products on the exchange-traded platform marks a significant step towards developing the country's capital market. She expressed gratitude to the BSEC for its cooperation and guidance in implementing the initiative, saying a specific roadmap and timeline have been set jointly by the DSE and the commission, and the initiative will move forward in phases based on stakeholders' feedback. Nuzhat added that detailed workshops and awareness programmes on the matter will be organised in the future. BSEC Executive Director Abul Kalam said financial derivatives, particularly index derivatives settled in cash, can be introduced relatively easily, but their successful implementation requires a robust regulatory, technological, clearing, settlement and risk-management framework. He said the existing Exchange Derivatives Rules will be updated to formulate the necessary regulatory framework. Alongside this, a suitable trading platform, CCP, real-time margining, position monitoring and mark-to-market systems will be put in place. Progress on preparations will be monitored regularly against a set action plan and timeline, he said, adding that the derivatives market launch will be expedited to increase the depth and diversity of the capital market. General Manager of the Market Development Division Saied Mahmud Zubayer said the DSE is planning to launch derivatives products in January 2028 to introduce modern financial instruments and deepen the market, a plan that has been approved by the BSEC. He said the DSE has prepared a strategy and action plan covering the regulatory framework, technological infrastructure and stakeholder readiness required for the launch, and has submitted it to the BSEC, with preparations progressing with the commission's cooperation. In the first phase, DSE plans to introduce its own index-based Stock Index Futures, followed by Single Stock Deliverable Futures, with an Options Market planned for the long term. The programme also aimed to raise awareness among market participants about derivatives products while gathering stakeholders' opinions on the potential, challenges and preparations needed for introducing such instruments.

The Bangladesh Securities and Exchange Commission (BSEC) on Thursday held a stakeholder consultation meeting on its draft "BSEC (Direct Listing of Securities by Stock Exchange) Rules, 2026" at the commission's Agargaon office, as part of efforts to frame a modern, transparent and effective regulatory framework for direct listing of fundamentally strong companies on the capital market. The meeting was chaired by BSEC Chairman Masud Khan and attended by BSEC commissioners, managing directors and senior officials of the Dhaka Stock Exchange and Chittagong Stock Exchange, the president of the Bangladesh Association of Publicly Listed Companies (BAPLC), the president of the Bangladesh Merchant Bankers Association (BMBA), and top representatives of listed and non-listed companies, merchant banks, issue managers, professional bodies and other market stakeholders. Senior representatives from more than two dozen companies took part, including Unilever, Metlife, Nestlé Bangladesh, Banglalink, Karnaphuli Fertilizer Company Ltd (KAFCO), bKash, Incepta Pharmaceuticals, Healthcare Pharmaceuticals, Essential Drugs, Sinovia Pharmaceuticals, Nagad, Meghna Group of Industries (MGI), PRAN-RFL Group, DBL Group, Abul Khair Group, United Group, Kazi Farms Group, Confidence Group, Confidence Infrastructure PLC, BRB Cables, Edison Power, Edison Footwear, Borak Real Estate, Paschimanchal Gas Company, Sylhet Gas Fields Ltd, Impress-Newtex Composite Textiles Ltd, National Polymer, Karnaphuli Gas Distribution Company, Walton, Akij Resources, ACI PLC, North-West Power Generation Company Ltd, and Seiler Ring Cement. A presentation was made on the draft rules, covering eligible companies for direct listing, the application and listing process, listing conditions, and the price discovery mechanism. Participants shared their views, observations, suggestions and practical experience on the proposed provisions, with several emphasising the need to bring genuine and capable companies to the market through direct listing while safeguarding investors' interests and market discipline. Speaking at the meeting, BSEC Chairman Masud Khan said the number of fundamentally strong companies in the country's capital market remains inadequate, and the commission wants to bring good, well-established family-run companies into the market through direct listing to deepen and widen it. This, he said, would boost participation of quality companies while attracting more domestic and foreign investment. He said listing brings companies enhanced reputation and credibility, along with the opportunity to establish themselves as strong corporate brands. Listed companies also enjoy tax benefits, potential share price appreciation and greater share liquidity, he added, noting that sponsors gain an avenue to liquidate their shareholdings, while the arrangement would also help companies raise additional capital for future expansion. The BSEC chairman further said the commission is also working to make its IPO rules more practical and effective alongside the direct listing framework. He noted that a hybrid approach, combining existing share offloading with fresh share issuance, is under consideration, which would further expand listing opportunities for eligible companies and create new investment avenues in the market. Some senior company representatives expressed interest in entering the market through direct listing, while others favoured the hybrid route combining IPO and share offloading. Participants welcomed the commission's initiative on direct listing and pledged their cooperation and continued input on the matter.

The Bangladesh Securities and Exchange Commission (BSEC) has framed draft amendments to the BSEC (Margin) Rules, proposing fundamental relaxations to make margin loans more accessible for investors and to expand lending capacity for market intermediaries. The proposed changes aim to eliminate practical operational complexities, foster an investor-friendly framework, and boost liquidity across the country's capital market. Key Proposals in the Draft Rules Extension to Low-Dividend Companies: Under the draft rules, investors will be eligible for margin loans to purchase shares of B-category companies even if the companies pay less than a 5 percent dividend. Currently, only B-category companies paying a minimum 5 percent dividend qualify for margin finance. Lower Minimum Account Threshold: The required minimum equity value in a Beneficiary Owner (BO) account to qualify for margin loans is set to be reduced to Tk 3 lakh from the current requirement of Tk 5 lakh held for a minimum of one year. Higher Intermediary Lending Cap: Stockbrokers and merchant banks will be allowed to disburse margin loans up to five times their core capital or net worth, up from the existing cap of three times. Removal of Free-Float Cap Requirement: The mandatory requirement for a listed company to maintain a minimum Tk 50 crore in free-float market capitalisation to qualify for margin loans will be scrapped. Single Stock Exposure Limit Raised: The maximum margin exposure limit for a single stock is proposed to be increased to 20 percent from the existing 15 percent. Adjustment to Maintenance Margin: A margin call will be triggered when a portfolio's value falls below 70 percent, down from the existing 75 percent threshold. The compulsory forced-sale trigger remains unchanged at 50 percent. P/B Ratio Limits for Financial Institutions: While non-financial companies will retain the maximum Price-to-Earnings (P/E) ratio limit of 30, financial institutions will be evaluated using the Price-to-Book (P/B) ratio. Banks and financial institutions with a P/B ratio exceeding 3 will be excluded from margin financing, while insurance companies will face a P/B cap of 1. The BSEC noted that the draft amendment was approved in principle during its 913th meeting and has been published to solicit public feedback and opinions from market stakeholders before finalization.