Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan expressed a proactive stance towards attracting high-quality companies to the stock market, highlighting the importance of enhancing market stability and maturity. Addressing the 10th anniversary celebration of CFA Society Bangladesh at Sheraton Dhaka, Khan emphasized the current scarcity of quality stocks in the market, noting a predominant focus on weaker and speculative shares in trading activities.
Khan stressed the urgency of introducing top-tier companies swiftly to provide investors with access to fundamentally sound investments. The BSEC is actively considering various incentives to incentivize strong companies to go public, including potential tax benefits following discussions with the National Board of Revenue (NBR). Khan proposed streamlining administrative processes to make listing more appealing, suggesting the establishment of a distinct tax framework for listed companies to reduce regulatory burdens compared to unlisted entities.
Highlighting the advantages of public listing, Khan underscored the positive impact on governance, professional management, and succession planning for publicly traded companies. He outlined plans to promote direct listings for multinational corporations, well-governed banks, state-owned enterprises, and reputable local firms to bolster the market with quality shares without necessitating additional capital raising.
Emphasizing the current reliance on retail investors in Bangladesh, Khan advocated for increased institutional participation to elevate the market from a frontier-market status to emerging-market standards. He emphasized the pivotal role of institutional investment and the listing of quality companies in fostering a more robust and advanced capital market.
Khan called for significant regulatory simplification and digitalization, citing the complexity of existing regulations governing IPOs, margin loans, and mutual funds. He proposed full automation of IPO and rights issue applications, urging regulators to strike a balance between necessary regulation and simplification.
Asif Khan, the society’s president, and M Masrur Reaz, chairman and chief executive officer of Policy Exchange Bangladesh, also delivered remarks during the event.
