United News of Bangladesh

The Bangladesh Securities and Exchange Commission (BSEC) has announced the publication of the new Initial Public Offering (IPO) rules in a gazette, voicing optimism that the reform will pave the way for quality companies to enter the capital market this year. According to the regulator, the Bangladesh Securities and Exchange Commission (Public Offer of Equity Securities) Rules, 2025 were gazetted on December 30 and have come into effect immediately upon publication. Under the new rules, the role of stock exchanges in the listing of new companies has been strengthened. Stock exchanges will now grant preliminary approval to IPOs, while the BSEC will provide final approval based on the exchanges’ recommendations. The revised rules also stipulate that companies seeking listing through IPOs must have a minimum paid-up capital of Tk 30 crore, and at least 10 percent of post-IPO shares must be offered to the capital market. Read more: Bangladesh Capital Market: Stocks edge up in first hour of trading Besides, issuers will be required to complete the utilisation of funds raised through IPOs within five years of completing the offering. Commenting on the implementation of the new IPO rules, BSEC Director and spokesperson Abul Kalam told UNB, “After reforming the mutual fund and margin rules, the most challenging task was revising the IPO regulations. The commission finalised the rules and sent them to the relevant ministry within December. The new IPO rules will benefit the stock market in the long run.” Even before the rules were finalised, the commission had been trying for over a year to bring quality companies to the market, but those efforts failed to materialise. Despite multiple meetings aimed at listing state-owned enterprises and multinational companies, no major company entered the capital market, leading to growing frustration among investors. Investor Sajjadul Islam said, “A single good company can turn the market around. But the commission has failed to bring even one. When companies like Square Pharma, Grameenphone or Robi entered the market, it helped revive investor confidence. Yet even after a year, this commission has not been able to bring any quality company.” Another investor, Abul Hossain, said investors are eagerly waiting for good companies to be listed, but continued delays are pushing many to turn away from the market in disappointment. Read more: Bangladesh stock market opens New Year with index gains Explaining why no quality company could be listed in the past year, a senior BSEC official, speaking on condition of anonymity, said bureaucratic complexities have stalled progress. “If these bureaucratic hurdles did not exist, it would have been possible to bring good state-owned companies to the market, even if multinational private companies remained reluctant,” the official said. He said the commission made year-long efforts to directly list 18 state-owned companies. “Even with direct instructions from the Chief Adviser, these companies could not be listed due to delays and non-cooperation from the concerned ministry secretaries. Despite repeated meetings and requests, the issue was not taken seriously.” Asked when new companies might enter the market under the revised rules, BSEC spokesperson Abul Kalam said the commission remains hopeful that quality companies will be listed within the current year. Investors, however, have complained that after the commission assumed office, it cancelled a number of IPO applications that were already under process. As a result, merchant banks acting as issue managers have reportedly lost interest in submitting new IPO proposals. “We did not rush to list bad companies,” Abul Kalam said, adding, “most of the IPOs approved by the previous commission were of poor-quality companies, which destabilised the market and increased manipulation. Our focus is on eliminating manipulation and ensuring that only good companies are listed.” Meanwhile, DSE Brokers Association of Bangladesh (DBA) President Saiful Islam said that the likelihood of IPOs before the national election is low. Good companies will not be interested in listing unless good governance is restored in the capital market, he added. “Let alone comparing Bangladesh with India, even compared to Pakistan and Sri Lanka, Bangladesh lags far behind in terms of market governance scores. Without addressing these issues, the capital market cannot return to normal,” he said. Saiful said stability may return after the 13th national election and the formation of a new government, creating an opportunity to change the market scenario if quality companies are listed at that time. Commission sources said that responsibility for managing IPOs of major companies as an issue manager was given solely to the state-owned Investment Corporation of Bangladesh (ICB), but the initiative did not yield results. An inquiry found that ICB, once a profitable institution, is now struggling with heavy losses. In the 2024–25 fiscal year, ICB’s losses exceeded Tk 1200 crore. The institution is surviving on loans and has repeatedly sold shares to pay interest obligations. ICB Chairman Professor Abu Ahmed, however, expressed optimism about a turnaround. “Despite many ups and downs, ICB has survived. In the past, its funds were invested in poor-quality IPOs linked to market manipulation, which caused significant losses.” Read more: BSEC takes action against ACME, Genex, auditors over irregularities “We are hopeful that good companies will be listed in the market soon. Alongside state-owned enterprises, multinational companies will also come to the market, which will change the overall scenario,” he added. Market analysts say that while the new IPO rules have strengthened safeguards against manipulation, they have also made listing more challenging in some cases. Nevertheless, they believe the reforms will benefit the capital market in the long term.

Both the Dhaka and Chattogram stock exchanges closed higher on Sunday, the first trading session of the week, with most listed companies ending the day in the green. At the Dhaka Stock Exchange (DSE), the benchmark index DSEX rose by 61 points at the end of the day’s session. The Shariah-based DSES index gained 17 points, while the blue-chip index DS30 advanced by 42 points. Out of 398 issues traded on the DSE, prices of 180 advanced, 146 declined and 72 remained unchanged. All three categories — A, B, and Z — saw a majority of their stocks gain in value. Among the 219 companies under the A category, which includes firms with strong dividend records, 98 posted gains, while 84 declined and 37 remained unchanged. Stocks rally in first two hours of trading at DSE, CSE In the block market, shares of 29 companies worth Tk 10 crore were traded. Asiatic Laboratories Limited topped the list with block trades worth Tk 3 crore. Mozaffar Hossain Spinning Mills emerged as the day’s top gainer on the DSE, rising by 9.66 percent, while Express Insurance Limited was the top loser, shedding 9.82 percent. The total turnover on the DSE stood at Tk 775 crore, slightly lower than the previous session’s Tk 789 crore. Chattogram Market   Mirroring the upward trend in Dhaka, the Chittagong Stock Exchange (CSE) also saw a sharp rise, with its overall index gaining 146 points. Of the 224 issues traded on the CSE, 123 advanced, 78 declined and 23 remained unchanged. VFS Thread Dyeing Limited topped the CSE gainers’ list with a 10 percent rise, while ICB AMCL 3rd NRB Mutual Fund was the biggest loser, falling by 10 percent. The turnover on the CSE reached Tk 10 crore, up from Tk 6 crore in the previous session.

The country’s stock market is reeling under significant pressure this week, with both the Dhaka and Chattogram bourses witnessing substantial losses. Following a fall on the first trading day, the market continued its downward trend on Tuesday, the second session after the Bangla New Year holiday, as the share prices of most listed companies declined. On the Dhaka Stock Exchange (DSE), the key index DSEX shed 37 points, reflecting the prevailing bearish sentiment. The downturn extended to other indices as well— the Shariah-based DSES dropped by 10 points, while the blue-chip DS30 index lost 18 points. Out of 397 companies traded on the DSE, the majority suffered price losses. While only 98 companies recorded gains, 255 saw a decline in share prices and 44 remained unchanged. A breakdown by category shows the price fall dominated across all segments—A, B, and Z. In particular, only 11 of the 83 B-category companies experienced price increases, while 67 declined and 5 remained unchanged. Mutual funds were not spared either. Among the 36 funds traded, only 7 saw price appreciation, while 24 declined and 5 stayed the same. In the block market, 26 companies offloaded shares worth Tk 48.93 crore. Marico Bangladesh topped the chart, selling shares worth Tk 23.38 crore alone. Despite the falling indices, DSE saw an increase in overall turnover. Total transactions reached over Tk 446 crore, compared to Tk 414 crore on the previous trading day. Rangpur Foundry Ltd emerged as the top gainer on the DSE, with its share price rising by 9.94%. The stock opened at Tk 142.90 and closed at Tk 157.10. FICCI calls for equitable energy tariff to safeguard investment, competitiveness In contrast, Khan Brothers was the worst performer of the day, shedding 9.96%. The stock fell from Tk 134.50 to close at Tk 121.10. Chattogram Bourse Follows Suit The Chattogram Stock Exchange (CSE) mirrored the downtrend, with its key index plunging by 100 points during the day’s trading session. Out of 211 companies traded on the CSE, 135 witnessed a decline in share prices, while 54 advanced and 22 remained unchanged. Turnover on the CSE also decreased sharply. From Tk 15 crore in the previous session, total transactions dipped to just Tk 7 crore. Eastern Cables Ltd became the day’s top gainer on the CSE, with its share price climbing by 9.95%. On the losing end, Deshbandhu Polymer Ltd dropped by 9.77%, ending the day at the bottom of the performance table. Both bourses are now navigating through a period of uncertainty, with investor sentiment remaining shaky amid continued sell pressure and limited buying support.

Investors of the Dhaka Stock Exchange (DSE) have called for the resignation of Bangladesh Securities and Exchange Commission (BSEC) Chairman Khondoker Rashed Maqsood, citing his inability to manage the volatile stock market. The demands came after share prices of various companies plummeted, prompting widespread frustration among investors. Many blamed the BSEC chairman for failing to provide necessary support to institutional investors, which they claim has led to market instability. Protesters demanded a task force, like the one formed for the banking sector, to investigate the irregularities. They rallied outside the old DSE building in Motijheel on Thursday morning. Read: Stock market bullish on second day of lifting floor price Protestors marched from Motijheel to Agargaon, eventually staging a sit-in outside the BSEC headquarters, reiterating their demand for Maqsood’s resignation.  On Wednesday, at around 4:30 pm, investors from various organizations gathered outside the Investment Corporation of Bangladesh (ICB) and announced the ‘Long March’ to pressure the regulatory body. Read more:Dhaka Stock Exchange gains Tk 6,749 crore in market capital Earlier that day, members of the Bangladesh Capital Market Investors Oikya Parishad had formed a human chain in front of the old DSE building, underscoring the growing frustration with the market regulator.     

Saif Powertec Limited on Sunday handed over 100 laptops and Tk1.80 crore for 1000 students as scholarship to Sheikh Russel National Shishu-Kishore Parishad marking the 57th birthday of Sheikh Russell, the youngest son of Father of the Nation Bangabandhu Sheikh Mujibur Rahman.