Business leaders, regulators and capital market professionals have discussed the opportunities, challenges and regulatory reforms needed to encourage greater corporate participation in Bangladesh’s capital market.
They made the observations at a thematic dialogue titled “Capital Market Growth Dialogue: Pathway to Listing”, jointly organised by IDLC Investments Limited and the Chittagong Chamber of Commerce and Industry (CCCI) at the CCCI office at the World Trade Center in Agrabad, Chattogram.
Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan attended the programme as the chief guest, while Dhaka Stock Exchange (DSE) Chairman Mominul Islam and Chittagong Stock Exchange (CSE) Chairman AKM Habibur Rahman were present as special guests.
Senior representatives from regulatory authorities, stock exchanges, leading business groups, corporate houses and capital market institutions took part in the discussion.
The participants focused on ways to make the listing process easier and more attractive for established companies, particularly through initial public offerings (IPOs) and direct listings.
They discussed how greater access to the capital market could help companies raise long-term funds, strengthen their capital base, reduce dependence on bank financing and support business expansion.
Prospective issuers from Chattogram also raised concerns about the existing regulatory framework and sought clarification from representatives of BSEC, DSE and CSE.
BSEC Chairman Masud Khan said that due to the lengthy listing process in Bangladesh’s capital market, businesses often raise funds from the money market or other sources. As a result, the capital market does not gain the desired momentum, and businesses also do not achieve sustainable growth.
“To make it easier for large and quality companies to list directly on the capital market and raise funds, the Securities and Exchange Commission is taking necessary steps in collaboration with stakeholders,” he said.
CCCI President Mohammed Amirul Haque said many business owners are reluctant to enter the capital market because listed companies are required to pay dividends even when they do not make a profit.
They also have to navigate various regulatory complexities after listing. There should be an opportunity for companies to pay dividends when they make profits and not pay dividends when they incur losses, he said.
Kazi Mahmood Sattar, Chairman of IDLC Finance, said, “The mutual fund market in Bangladesh is still not robust enough. There are also several challenges in the IPO process. Therefore, BSEC has to work with the NBR to ensure that tax-related policies do not conflict with the interests of the capital market.”
M Jamal Uddin, Managing Director and CEO of IDLC Finance, said, “It is time for businesses in Bangladesh to look beyond traditional bank financing and consider the capital market as a reliable source of long-term funding. With a more advanced and transparent valuation process, companies can now enter this market with greater confidence and achieve a fair value for their businesses.”
IDLC Investments CEO Mesbah Uddin Ahmed said his organisation was providing support to companies seeking to enter the capital market, including assessing their readiness, funding needs, ownership dilution and appropriate valuation methods.
Representatives from BSEC, DSE and CSE also addressed concerns raised by prospective issuers and discussed possible ways to further streamline the listing process.
The participants said greater corporate participation would help develop a deeper, more diversified and sustainable capital market while reducing excessive dependence on bank-based financing.