After a long hiatus of 16 years, the Bangladesh Securities and Exchange Commission (BSEC) has officially reopened the "Direct Listing" pathway for private sector companies to encourage large domestic and foreign enterprises to enter the capital market. The gazette was published last Sunday under the leadership of BSEC Chairman Masud Khan.
Previously restricted solely to government entities following controversial listings in 2010—and subsequent unsuccessful attempts by Aman Cement and Best Holdings—the revised regulations introduce strict compliance criteria. Under the new rules, eligible entities include companies with at least 10% government ownership, 51% foreign ownership, scheduled banks, financial institutions, and insurance companies with a net asset of BDT 500 crore, or enterprises with an annual turnover of BDT 1,000 crore. Furthermore, companies must have a minimum of five consecutive years of commercial production, profitability in the last two financial years, no accumulated losses, and clean credit histories for promoters.
Promoters and directors are also required to collectively hold at least 30% of the shares post-listing, while selling at least 10% of their paid-up capital during the process based on a rationally determined reference price.
— Daily Best News Desk • Fearless in the search for truth
Reported by Financial Correspondent • Edited by the Daily Best News desk. Send corrections to [email protected].
