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.