The Ministry of Finance has lifted long-standing restrictions on direct listing on national stock exchanges, paving the way for state-owned, private, and individual-owned companies to list securities without undergoing a traditional Initial Public Offering (IPO).
The Financial Institutions Division (FID) under the Ministry of Finance communicated the official decision in a letter signed by Deputy Secretary Md. Mamun Rashid and sent to Bangladesh Securities and Exchange Commission (BSEC) Chairman on Monday (October 5, 2026). The letter stated that in the interest of sustainable capital market development, the restriction previously imposed on direct listing has been revoked with immediate effect. The decision follows a formal request submitted by BSEC on August 19, 2026, which sought to overturn the ban originally implemented via a ministry memorandum on February 9, 2020. Unlike conventional IPOs, direct listing allows established companies to list existing shares directly on stock exchanges. While the ministry letter removes the overarching policy prohibition, detailed regulatory parameters will be governed by BSEC guidelines. BSEC has recently approved the draft "Bangladesh Securities and Exchange Commission (Direct Listing of Securities through Stock Exchange) Rules, 2026," which proposes allowing eligible companies to list by offloading 10 to 20 percent of existing shareholder equity without launching fresh IPO shares. Public feedback on the draft rules concluded on September 15.
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Reported by Staff Reporter • Edited by the Daily Best News desk. Send corrections to [email protected].
