Capital market stakeholders have criticised the draft Bangladesh Securities and Exchange Commission (Public Offer of Equity Securities) Rules 2025, saying the proposed framework is too restrictive and would discourage good companies from listing.
They called for simpler and more transparent rules that reflect market realities, remain stable for a long period and support a steady flow of quality IPOs.
The concerns were raised at an event jointly organised by the Dhaka Stock Exchange and the DSE Brokers Association of Bangladesh at the DSE Tower in the capital.
聽Representatives from the Bangladesh Merchant Bankers Association, the Bangladesh Association of Publicly Listed Companies, BGMEA and DCCI took part.
DSE chairman Mominul Islam said the market鈥檚 problems must be resolved before the rules are finalised.
He warned that rigid regulations could shut out strong companies and close the doors and windows of the market.
He noted that Pakistan and Sri Lanka now have more consolidated markets than Bangladesh and said Bangladesh should aim to reach their level within five years.
DBA president Saiful Islam said that reforms should come through discussion with stakeholders.
He added that foreign investors have complained to him about complex and frequently changing regulations, which they see as a barrier to investing.
He urged BSEC to hold further consultations before finalising the rules.
Former DBA president Richard D鈥橰ozario said the requirement for investors to hold Tk 50,000 in secondary market shares before applying for an IPO is unfair and excludes students and small investors.
Speakers pointed out that no company has listed since the political shift of August 5, 2024, and said the draft rules could deepen the slowdown.
They argued that several provisions would restrict price discovery and discourage companies from seeking listings.
Stakeholders opposed capping valuation using industry or market PE ratios.
They said pricing should be based on company-specific factors like growth, margins, competitive position and management strength.
They rejected the requirement for indicative prices from 75 eligible investors and instead proposed an auction method where bids determine price and allocation.
They recommended allowing companies to use up to 50 per cent of IPO proceeds to repay bank loans, arguing that many firms borrow long before reaching the IPO stage.
They asked the regulator to scrap the two-year bar on ownership or paid-up capital changes before an IPO, saying it limits strategic investment.
The Tk 100 crore post-IPO paid-up capital ceiling under the fixed price method was also criticised as a barrier for large companies.
