BSEC to make bond financing more attractive than bank loans: Chairman

The Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan said the regulator would introduce measures to shorten the bond issuance process and make bond financing more attractive than bank loans.
Bangladesh has yet to develop a functional bond market, and raising funds through bonds remains costlier and more time-consuming than securing bank loans, according to the BSEC chief.
He said the country must first strengthen the conventional bond market before moving toward a sustainable bond market.
The BSEC chairman made the remarks as the chief guest at the Sustainability Summit 2026, held on Saturday at the Radisson Blu Water Garden Hotel in Dhaka. 
The day-long event was organised by Bangladesh Brand Forum and Sustainable Brand Initiative as part of the Bangladesh Innovation Conclave.
Masud Khan said Bangladesh currently lacks a functional bond market beyond government securities (G-Secs).
“Bangladesh does not have a functional bond market. Apart from government securities, no other bonds are traded on the main board of the Dhaka Stock Exchange. That is the current reality,” he said.
He said discussions on developing a bond market have continued for years without meaningful progress because companies still find bank financing easier and cheaper.
“If I want to borrow from a bank, I can obtain financing within three months at a fixed cost. But if I try to raise funds through bonds, it takes about a year, and the cost is even higher,” he said.
“We must certainly move toward sustainable bonds. However, before that, we need to strengthen the foundation of the conventional bond market,” he said, adding that he has been working since taking office to activate the country’s bond market.

Concerns over retail investor dominance
Masud Khan also expressed concern that Bangladesh’s stock market remains heavily dependent on retail investors, many of whom invest without adequate knowledge.
“Unfortunately, the majority of investors in Bangladesh’s stock market are retail investors. Many of them have little understanding of the market and invest simply because someone tells them that share prices will rise,” he said.
He also highlighted the importance of corporate governance, saying companies with strong governance practices gain greater trust from investors and stakeholders.
However, he said the role of independent directors in Bangladesh is still often treated as a legal requirement rather than a mechanism for improving governance.
“There is a lot of discussion about independent directors. However, it is unfortunate that in Bangladesh the role is still largely treated as a legal formality,” he said.

Core business sustainability
In his inaugural speech, Shariful Islam, founder and managing director of Bangladesh Brand Forum, said sustainability can no longer be treated as an annual discussion topic.
He said sustainability must become embedded in the core operations of brands and organisations as Bangladesh prepares for Sustainable Development Goals (SDGs) 2030 and graduation from the Least Developed Country (LDC) category.
“Responsible business is no longer optional—it is the foundation of our competitiveness. Now is the time to move beyond accountability toward meaningful impact, and from mere compliance to responsible business practices,” he said.