BSEC takes initiative to simplify listing of large companies worth Tk 500 crore in the capital market

The capital market regulator BSEC has taken an initiative to encourage the country's large and promising industrial groups to raise sustainable capital from the stock market by reducing their dependence on bank loans. Work is underway to simplify the necessary policies so that large companies can easily get listed, overcoming commercial complexities and procedural delays.

Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan outlined the guidelines in this regard at a special dialogue jointly organized by the Chittagong Chamber of Commerce and Industry (CCCI) and IDLC Investments Limited at the International Trade Center in Chittagong on Saturday.

The dialogue on relaxation of IPO rules and opportunities for large companies stated that currently large companies with an annual turnover or total assets of at least Tk 500 crore will be able to be listed on the capital market through a direct and expedited process. In this case, there will be no need to undergo multiple audits for initial public offerings (IPOs); listing can be completed with just a single audit report.

The head of the regulatory agency said that companies get various strategic benefits, including tax reduction, when registered in the capital market. There are plans to increase the average daily trading volume in the country's stock market to at least Tk 1,500 crore, which will strengthen the market capitalization.

Demanding simplification of policies and harmonisation of tax structures, business representatives present at the dialogue urged the removal of existing barriers to raising capital. According to local businessmen, many quality companies are hesitant to come to the market due to the legal obligation to pay dividends even during business losses and various complex post-listing conditions.

Chittagong Chamber leaders and top executives of the capital market called for strengthening mutual coordination between BSEC, NBR and Bangladesh Bank. They expressed hope that the country's sluggish stock market would regain momentum if tax-related complications were resolved and internal governance was ensured.