BSEC moves to force MNCs, strong firms to list

The Bangladesh Securities and Exchange Commission (BSEC) will use its enforcement powers under securities laws to compel multinational and financially strong companies to list on the capital market if they refuse to join voluntarily.

The regulator is currently in talks with over 10 identified candidates while expanding efforts to list profitable state-owned enterprises. 

Market stakeholders emphasised that quickly adding large, profitable firms is critical to restoring investor confidence, boosting sluggish trading activity, and reversing a chronic shortage of quality IPOs.
10 more companies in listing discussions

The Bangladesh Securities and Exchange Commission (BSEC) has identified 10 high-profile companies as primary listing candidates in a strategic push to deepen the national capital market and boost liquidity. 

The lineup of state-owned enterprises under evaluation includes Karnaphuli Gas Distribution Company, Karnaphuli Fertiliser Company (KAFCO), North-West Power Generation Company, Paschimanchal Gas Company, and Sylhet Gas Fields. 

On the multinational front, the regulator is targeting Nestlé Bangladesh, Syngenta Bangladesh, Synovia Bangladesh, and Novartis Bangladesh, while continuing earlier dialogue with Unilever Bangladesh.

The effort forms part of a broader government plan to offload shares in profitable state-run enterprises alongside large-capital private and foreign operators. 

Market stakeholders maintain that bringing such high-caliber issuers to the exchange is essential to diversifying quality offerings and strengthening overall market depth.

BSEC Chairman Masud Khan confirmed that the regulator remains in active, continuous talks with leadership at the targeted firms, expressing hope that they will choose to list voluntarily through direct listing routes. 

However, he issued a firm warning: should these corporations decline to join the exchange, the commission is prepared to enforce Section 20A of the securities law to compel mandatory public listings.

Regulatory hammer and direct listing

Section 20A of the Securities and Exchange Ordinance, 1969 stands as a cornerstone of the BSEC’s authority, traditionally invoked to enforce market-wide stabilisation measures like floor prices and circuit breakers. 

Now, the regulator is weighing this same statutory power to mandate public listings for large, profitable “Public Interest Companies” should voluntary outreach fall short.

To make entry less burdensome, the BSEC is pairing its legal leverage with a streamlined direct listing option. 
Currently restricted to select state-owned enterprises, the framework is being expanded to all eligible large-scale corporations.

The system enables established firms to join stock exchanges by offloading a designated portion of existing shares, completely bypassing the conventional initial public offering (IPO) process.

By eliminating long regulatory wait times, extensive paperwork, and complex approval hurdles, the BSEC aims to counter a growing corporate preference for bank loans over equity financing. 

Chairman Masud Khan noted that while broader IPO reforms remain underway, opening the direct listing pathway is critical to helping high-caliber companies access the market quickly and efficiently.

Why MNCs are reluctant to list

Analysts say multinationals avoid listing in Bangladesh mainly to dodge strict compliance rules, mandatory financial disclosures, regulatory oversight, and accountability to minority shareholders.

Investment Corporation of Bangladesh (ICB) Chairman Prof Abu Ahmed dismissed the argument that companies should only list when seeking capital, pointing out that global giants like Nestlé operate on stock exchanges in neighbouring economies such as India, Pakistan, and Thailand.

To incentivise listing, Ahmed suggested offering tax breaks to willing companies, but advocated penalising reluctant firms through targeted fiscal and tax policy adjustments if they refuse to join the exchange without valid justification.

Echoing calls for stronger measures, Dhaka Stock Exchange (DSE) Director Richard D Rosario emphasised that multinationals generating substantial profits in Bangladesh carry social and economic responsibilities to the domestic public. 

Rosario recommended legally requiring large foreign corporations to offload a 10% to 20% stake to local retail investors, asserting that any company operating and profiting in Bangladesh must comply with national market rules.

Slow progress in listing state-owned companies

There have also been longstanding complications in bringing state-owned enterprises to the capital market.
According to market stakeholders, reluctance among board members and officials, administrative delays, and concerns over changes in control and benefits after listing often act as barriers.

Tariqul Haque, manager of the Board and Share Section of Paschimanchal Gas Company, said discussions on the issue have continued for years, but the company has yet to receive any official letter specifying when and how it should come to the stock market.

Therefore, there needs to be coordination between policy decisions and a specific implementation timeline, he said.

Prolonged IPO drought

The shortage of new companies entering the country’s capital market is also becoming increasingly prolonged.

The latest company to enter the market through an IPO was Techno Drugs in June 2024.

Earlier, in 2025, NRB Bank, Best Holdings, Asiatic Laboratories and Techno Drugs raised a combined Tk645 crore through IPOs.

DSE Brokers Association of Bangladesh (DBA) President Saiful Islam said the capital market cannot be revived through discussions alone.

Fundamentally strong state-owned and multinational companies must be brought to the market quickly, he said.

According to market stakeholders, the absence of new and quality companies means investors’ funds continue to circulate among a limited number of shares.

This is affecting market depth, liquidity and investor participation.

Therefore, alongside implementing reforms, quickly listing the identified companies and, if necessary, effectively applying Section 20A of the securities law could be among the most important measures to overcome stagnation in the capital market.