Bangladesh Securities and Exchange Commission (BSEC) has published a draft amendment to "Bangladesh Securities and Exchange Commission (Margin) Rules, 2025" and invited opinions, suggestions and objections from stakeholders, according to a press release issued by the commission today (20 July).

The draft amendment has been published in national daily newspapers as well as on the BSEC website, with stakeholders given two weeks from the date of publication to submit their feedback to the commission.

The commission said the consultation is a legal requirement and under the Securities and Exchange Ordinance, 1969, and the Bangladesh Securities and Exchange Commission Act, 1993, seeking opinions from stakeholders is a mandatory process whenever any rule is framed or amended.
BSEC said it would give due importance to all opinions, suggestions and objections received, and the rules would be finalised after necessary revisions, additions or modifications before being enacted through a government gazette notification.The commission clarified that the currently published draft is merely a proposal and not a final amendment, stating there is no scope for confusion or concern based on various assumptions, speculation or incomplete information regarding the draft.BSEC said it always attaches the highest importance to the interests and safety of investors, adding that the objective of the proposed amendment is to make the existing rules simpler, more practical, business-friendly and effective.

The commission said the final rules would be investor-friendly and aimed at ensuring overall market development and stability, taking into account the opinions and suggestions of all stakeholders.

The commission expressed hope that stakeholders would provide constructive feedback and that the media would present the draft amendment and the legal process appropriately, avoiding unnecessary confusion or concern among investors.

The country's premier bourse ended on a largely flat note yesterday as buying support for sector-specific large-cap scrips provided a necessary cushion against a persistent sell-off in the insurance sector.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) inched up marginally to settle at 5,857 points, effectively pausing a broader market correction that had emerged in recent sessions.

However, the blue-chip DS30 index edged down slightly to 2,208 points, reflecting a selective approach by investors who preferred to stay on the sidelines ahead of potential regulatory shifts.

The day's trading session was characterised by significant intraday volatility. Market analysts from EBL Securities noted that the indices opened under pressure but managed to stabilise as opportunistic investors took positions in fundamentally strong large-cap stocks. The broader sentiment, however, remains watchful as market participants await the finalisation of proposed revisions to margin lending rules. This cautious stance was further compounded by renewed geopolitical tensions in the Middle East, which weighed on the risk appetite of institutional and high-net-worth investors.

Sheltech Brokerage Limited observed that while selling pressure dragged the benchmark index to an intraday low of 5,855 points during the morning hours, a recovery emerged from the mid-session onwards. This turnaround was primarily driven by selective buying in banking stocks, fueled by positive expectations surrounding the upcoming half-year earnings season. Additionally, investors are calculating potential benefits for certain sectors under the draft margin rule amendments currently being reviewed by the securities regulator.

On the sectoral front, returns remained mixed with a stark contrast between performers and laggards. The Service and Real Estate sector emerged as the top gainer, posting a 2.28% return.

Conversely, the Insurance sector was the day's worst underperformer, shedding 2.31% of its value.

Market insiders attributed the heavy selling in insurance scrips to growing fears among investors that many of these companies might be excluded from margin loan eligibility under the new proposed price-to-book value criteria.

Despite the price fall, turnover remained concentrated in textiles, pharmaceuticals, and insurance, which collectively accounted for nearly half of the day's total trading volume.

Market participation saw a 10% decline compared to the previous session, with total turnover settling at Tk966 crore.

The market breadth also remained negative, as 182 issues declined against 148 that managed to advance, while 58 scrips remained unchanged on the DSE floor.

Among individual performers, mutual funds like LR Global Mutual Fund One and MBL First Mutual Fund hit the upper limit of the circuit breaker, while Sonargaon Textile and NCCBL Mutual Fund-1 also featured prominently on the gainers' list.

On the flip side, the losers' chart was dominated by insurance firms, including Provati, Karnaphuli, Takaful, and United Insurance.

The bearish sentiment in specific sectors was also reflected at the Chittagong Stock Exchange (CSE), where the Selective Categories' Index (CSCX) ended 23 points lower at 9,615, and the All Share Price Index (CASPI) dipped by 10 points to settle at 15,738.

The Bangladesh Securities and Exchange Commission (BSEC) and its affiliated institutions provided investment education to a total of 21,732 individuals during the 2025-26 fiscal year.

This extensive nationwide outreach, which included various training programmes, seminars, workshops, and conferences, was part of a broader strategy to increase investor awareness, facilitate informed decision-making, and build a healthy and stable capital market.

According to a press release issued by the BSEC today (20 July), these initiatives targeted a wide range of participants, from retail investors to financial professionals and journalists.

The BSEC's Financial Literacy Division played a central role in this initiative, reaching 4,660 people between July 2025 and June 2026. This training pool included 1,896 general investors and 1,194 employees of various market intermediary firms. To ensure accurate media coverage, the commission conducted workshops for 52 capital market journalists.

Furthermore, the division organised a high-level seminar on US SEC surveillance, capital issuance, and financial literacy for 81 participants, while also training 106 authorised representatives of DSE TREC-holders.

Special events also drew significant participation, with 1,290 individuals attending programmes during World Investor Week 2025.

The commission further focused on sector-specific growth by training 91 SME entrepreneurs on raising capital through public offerings. In a bid to promote gender inclusivity in the financial sector, 35 women investors participated in dedicated financial investment workshops, alongside another 26 individuals in miscellaneous educational sessions.

The regulator emphasised that this massive educational drive was a collective effort involving the Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), Central Depository Bangladesh Limited (CDBL), and the Investment Corporation of Bangladesh (ICB).

Key academic and professional bodies, including the Bangladesh Institute of Capital Market (BICM) and the Bangladesh Academy for Securities Markets (BASM), also took part.

Additionally, individual brokerage houses, merchant bankers, and listed companies carried out their own literacy initiatives to reach a broader audience.

Institutional data showed that, excluding BSEC's affiliated divisions, brokerage houses trained the highest number of participants at 3,876, followed by the Chittagong Stock Exchange (3,350), the Bangladesh Academy for Securities Markets (2,589), merchant bankers (2,352) and the Dhaka Stock Exchange (1,339).

Other contributors included 185 people trained by publicly listed companies, 181 by the BICM, 180 by the CDBL, and 111 by the ICB.

This multi-stakeholder approach underlines the regulator's commitment to ensuring that market participants at all levels are well-equipped with the financial knowledge necessary to navigate the bourse safely and effectively.

The stock market regulator has proposed making it easier for investors to borrow money to buy shares, believing the move could increase trading and improve market liquidity.

However, market experts say that easier access to borrowing could encourage riskier investing and make the market more vulnerable to sharp swings later.

With the proposals, the Bangladesh Securities and Exchange Commission (BSEC) published draft amendments to the Bangladesh Securities and Exchange Commission (Margin) Rules last week and invited comments from stakeholders.

A margin loan is money borrowed from a broker or merchant bank to buy shares. Investors pay part of the purchase price from their own funds and borrow the rest, allowing them to buy more shares than they otherwise could.

Among the seven major changes proposed by the BSEC, one of the most significant is expanding margin loans to more B-category companies.

B-category companies generally pay lower dividends than A-category companies and are considered riskier investments.

Under the current rules, investors can obtain margin loans only to buy shares of B-category companies that pay at least a 5 percent dividend. The draft rules would remove that requirement, allowing investors to borrow to buy shares even if those companies pay less than a 5 percent dividend.

According to market experts, margin loans are generally intended for relatively stronger shares because borrowing magnifies both gains and losses. Extending margin finance to weaker companies could encourage speculation and increase risks for both investors and lenders.

Faruq Ahmed Siddiqi, a former chairman of the BSEC, said companies that pay very low dividends or are fundamentally weak should not be eligible for margin loans.

“Instead, the level of dividend payment could be incorporated as a criterion for determining the margin loan ratio,” he said.

In other words, companies that pay lower dividends should qualify for lower margin financing. There should be some form of restriction on companies with poor dividend records.

Saiful Islam, president of the DSE Brokers Association of Bangladesh (DBA), said, “Under the proposed rules, even a company that pays only a 0.5 percent dividend would be eligible for margin lending; that should not happen.”

“While it is true that lenders will assess the risks before providing loans, such a provision should not exist in the first place. The proposal suggests that margin lending may be made more flexible,” he said.

The draft amendments also propose lowering the minimum investment required to qualify for a margin loan.

At present, investors must hold at least Tk 5 lakh worth of shares in their BO accounts for at least one year before they become eligible for margin finance. The proposed rules would reduce the threshold to Tk 3 lakh, allowing more investors to qualify.

The BSEC also wants brokers and other intermediaries to lend more.

At present, they can provide margin loans worth up to three times their core capital or net worth, whichever is higher. Under the proposed rules, that limit would rise to five times.

For example, a lender with Tk 100 in core capital can currently lend up to Tk 300. The proposed rules would allow it to lend up to Tk 500.

The draft amendments also seek to remove the minimum free-float requirement for companies whose shares qualify for margin loans.

Free float refers to the shares that are available for public trading. It excludes shares held by founders, sponsors and other long-term owners that are not normally traded.

Currently, a company must have at least Tk 50 crore in free-float market capitalisation for its shares to qualify for margin lending. The proposed rules would remove that requirement.

The BSEC has also proposed increasing the maximum exposure to a single stock to 20 percent from 15 percent. This would allow brokers to concentrate a larger share of their lending in one company.

Another proposed change would revise maintenance margin requirements. A margin call would be triggered when the value of an investor’s portfolio falls below 70 percent, compared with the current 75 percent threshold.

The compulsory forced-sale threshold would remain unchanged at 50 percent.

Former BSEC chairman Faruq said the regulator may be relaxing margin lending rules to support the capital market. One argument in favour of such a move is that the risks associated with margin lending should be borne by the lender and the borrower.

“However, this assumption holds true only if investors behave rationally.”

Given the investment behaviour typically observed in Bangladesh’s stock market, he said regulators need to exercise great caution when setting margin lending requirements.

“It is better for the rules to remain relatively stringent in the interest of investors.”

During a rising market, many investors become eager to borrow while intermediaries are equally willing to extend credit. But when the market corrects, excessive margin lending can create significant risks, he added.

DBA President Saiful said expanding the market through margin lending is not sustainable. Instead, it could create significant risks.

“In a market where a large number of companies are underperforming, using leverage to inflate the market would be suicidal. Greater use of leverage may be appropriate when the market is dominated by institutional investors, but in a retail-driven market, excessive reliance on margin loans is not desirable.”

Moreover, for the market to grow in a sustainable manner, the mutual fund industry needs to become much larger, he added.

The draft amendments also revise the valuation criteria for companies eligible for margin loans.

For most companies, the price-to-earnings (P/E) ratio must remain below 30. For banks and other financial institutions, lenders would instead use the price-to-book (P/B) ratio because book value is generally considered a more appropriate measure for financial companies.

As per the proposal, banks and financial institutions with a P/B ratio above 3 would not qualify for margin lending. For insurance companies, the limit would be 1.

Md Sayeed Ahmed, a veteran chartered accountant and former executive director of the Financial Reporting Council, said using the price-to-book ratio as the primary or sole valuation criterion for financial sector securities, while relying on earnings-based measures for other sectors, appears “inconsistent” with well-established valuation principles.

He said a going concern business derives its economic value primarily from its expected future earnings and cash-generating capacity rather than merely from the historical carrying value of its net assets.

Book value is fundamentally an accounting measure representing historical net assets after applying accounting standards. It does not necessarily reflect a company’s future profitability, competitive strength, franchise value, management quality, business model, technological capability, or long-term growth prospects, he added.

The Bangladesh Securities and Exchange Commission (BSEC) has proposed sweeping amendments to its margin loan regulations, easing several key provisions in an effort to improve liquidity in the capital market while strengthening the overall risk management framework.

Market participants say the proposed reforms could inject much-needed liquidity into the market by expanding margin financing capacity and making the facility accessible to a wider pool of investors. However, they also express caution that easier access to leverage could encourage speculative trading and increase market risk if not accompanied by effective regulatory oversight.

The securities regulator approved the draft amendments to the Bangladesh Securities and Exchange Commission (Margin) Rules, 2025 on 14 July. The draft was published on the commission's website today (19 July) for public consultation, with stakeholders invited to submit their opinions within the next two weeks.

Financing capacity set to expand

The most significant amendment would raise the maximum margin financing limit for stockbrokers, merchant banks and portfolio managers from three times to five times their core capital or net worth, whichever is higher.

According to market participants, the existing ceiling has limited the ability of many institutions to meet investor demand for margin loans. Raising the limit is expected to expand financing capacity, improve market liquidity and support trading activity at a time when the capital market continues to face a prolonged liquidity shortage.

The regulator has also proposed lowering the minimum investment threshold required to qualify for a margin loan from Tk5,00,000 to Tk3,00,000, making the facility accessible to a larger number of retail and mid-sized investors.

The draft further revises margin call provisions. If an investor's equity falls below 70% of the financing amount, the margin financer will issue a margin call and provide three trading days for the investor to restore the required equity. If the investor fails to do so, no additional financing can be provided, while the financer may sell securities to rebalance the account. If equity drops below 50%, the financer will be allowed to liquidate securities without prior notice.

To discourage leveraged investment in fundamentally weak or overvalued stocks, the regulator has retained and clarified the eligibility criteria for marginable securities. Companies with a price-to-earnings (P/E) ratio above 30 or negative earnings per share (EPS) will remain ineligible for margin financing.

For banks, non-bank financial institutions (NBFIs) and other financial service providers, price-to-book (P/B) ratio will replace the P/E ratio as the valuation benchmark. Securities with a P/B ratio above 3, and insurance companies with a P/B ratio above 1, will not qualify for margin financing.

The draft also states that only eligible securities listed on the main board will qualify for margin financing. Securities listed under the G, N and Z categories, as well as those on the SME, ATB and OTC platforms, will remain ineligible.

Among other proposals, investors will be allowed to maintain both a cash account and a margin account with the same margin financer. Margin agreements will be automatically renewed unless terminated by either party. In addition, a margin financer will not be allowed to invest more than 20% of its total outstanding margin portfolio in a single security, while margin financing will remain capped at a 1:1 equity-to-loan ratio for general securities and 1:0.25 for listed life insurance companies.

Experts welcome reforms but urge caution

Md Ashequr Rahman, managing director of Midway Securities, said the proposed amendments are significantly more flexible than the existing margin loan framework and are likely to improve liquidity in the capital market.

He welcomed the move to determine the margin eligibility of banks, non-bank financial institutions (NBFIs) and insurance companies based on the price-to-book (P/B) ratio, saying it is a more appropriate valuation metric for financial institutions.

He also said reducing the margin call threshold from 75% to 70% would give investors greater flexibility to withstand short-term market volatility. Raising the financing cap to five times a margin financer's core capital or net worth would expand lending capacity and help ease the market's prolonged liquidity shortage.

However, Ashequr cautioned that easier access to margin loans could also encourage speculative trading if not backed by strong regulatory oversight. Recalling the 2010 stock market crash, he stressed that effective risk management and supervision are essential to prevent excessive leverage and avoid repeating past mistakes.

Akramul Alam, head of research at Royal Capital Ltd, said the proposed amendments are logical and better aligned with current market realities.

He believes the revised rules make the margin financing framework more flexible, which should gradually improve liquidity in the capital market over the long term.

Alam welcomed the decision to replace the Price-to-Earnings (P/E) ratio with the Price-to-Book (P/B) ratio for banks, NBFIs and other financial institutions, calling it a more appropriate and internationally accepted valuation method.

However, he noted that the P/E threshold for other sectors has been reduced from 40 to 30, making the eligibility criteria stricter. Overall, he said the amendments strike a better balance between boosting liquidity and containing risk, creating a stronger framework for margin financing.

The benchmark index of the Dhaka Stock Exchange (DSE) slipped below the 5,900-point mark on Sunday, as investors booked profits in recently rallied stocks while assessing the potential impact of proposed changes to the country's margin financing rules.

Market analysts say broad-based selling pressure hit major sectors, including insurance, engineering, food, pharmaceuticals, telecommunications and banking, following weeks of strong gains.

The DSEX had climbed above the 5,900-point level for the first time in nearly two years last week, buoyed by a series of regulatory reforms and capital market-friendly government policies that boosted investor confidence.

"The recent rally prompted many short-term investors to lock in profits," said a leading stockbroker.

He added that investors were also evaluating the implications of the Bangladesh Securities and Exchange Commission's (BSEC) proposed amendments to the margin financing rules, which temporarily dampened market sentiment.

Insurance stocks came under notable selling pressure after the BSEC proposed revising margin financing eligibility criteria by replacing the price-to-earnings (P/E) ratio with the price-to-book (P/B) ratio for banks, financial institutions and insurance companies.

Under the draft rules, banks and financial institutions with a P/B ratio above three and insurance companies with a P/B ratio above one would no longer qualify for margin financing, raising concerns that demand for some shares in those sectors could weaken.

According to EBL Securities, the market extended its corrective trend as persistent selling reflected investors' cautious reaction to the draft margin financing rules.

"Although selective buying initially helped cushion early losses, renewed selling pressure emerged after the publication of the proposed amendments, keeping the market under pressure throughout the session," the brokerage said in its daily market commentary.

The DSEX, the benchmark index of the DSE, declined by nearly 45 points, or 0.76 per cent, to close at 5,856.18, extending its cumulative loss to about 71 points over the past two trading sessions.

The DS30 Index, which tracks blue-chip stocks, fell 17 points to 2,210, while the DSES Index, comprising Shariah-compliant companies, shed nine points to 1,197.

Among the major contributors to the index decline were Walton Hi-Tech Industries, BRAC Bank, Square Pharmaceuticals, BSRM Steels and Olympic Industries, which together accounted for nearly 14 points of the DSEX's fall.

Despite the correction, trading activity remained healthy. Turnover on the premier bourse stayed above the Tk 10 billion mark, although it eased from the previous session. Total turnover stood at Tk 10.70 billion, compared with Tk 11.18 billion in the preceding trading day.

Market breadth remained firmly negative, reflecting widespread selling pressure. Of the 392 issues traded on the DSE, 245 declined, 98 advanced and 49 remained unchanged.

Malek Spinning Mills topped the turnover chart with shares worth Tk 269 million changing hands, followed by Techno Drugs, Shepherd Industries, BSRM Steels and LankaBangla Finance.

Among the day's performers, Green Delta Mutual Fund emerged as the top gainer, advancing 10 per cent, while Meghna Insurance suffered the steepest decline, falling 8.86 per cent.

The Chittagong Stock Exchange (CSE) also ended lower. Its All Share Price Index (CASPI) dropped 66 points to 15,748, while the Selective Categories Index (CSCX) lost 61 points to close at 9,639.

Paramount Insurance Company Limited reported a 145% year-on-year increase in profit for the second quarter (April–June) of 2026, driven by higher premium income and lower net claims.

According to a disclosure published today (19 July), the insurer's earnings per share (EPS) rose to Tk0.98 for the quarter, up from Tk0.40 in the corresponding period last year.

For the first half (January-June) of 2026, EPS increased to Tk2.19 from Tk1.58 a year earlier.

Despite the strong earnings growth, the company's share price fell 3.39% to Tk62.70 on the Dhaka Stock Exchange today.

Net operating cash flow per share climbed to Tk1.95 during the first half, compared with Tk0.45 in the same period last year. The company attributed the improvement to steady growth in premium income and higher premium deposits.

Net asset value per share also increased to Tk29.86 as of June, from Tk27.53 a year earlier, supported by higher reserves for exceptional losses and the investment fluctuation reserve.

In 2025, Paramount Insurance posted a profit of Tk8.90 crore with an EPS of Tk2.19. Based on its performance, the company declared a 10% cash dividend for shareholders.

United Insurance, a listed insurer, reported a 45% year-on-year rise in earnings per share (EPS) for the second quarter of 2026, driven by higher underwriting profit, sending its shares to the daily upper circuit.

The company's shares gained 9.81%, or Tk4.70, to close at Tk52.60 on the Dhaka Stock Exchange (DSE).

DSE data showed that at the beginning of trading sessions, United Insurance shares adjusted opening price was Tk47.90 each, while trade begun, shares jumped at Tk52.10 each.

According to a disclosure published today (19 July), its EPS surged to Tk1.75 during the April-June quarter, at the same time of the previous year, it was Tk1.21.

Its disclosure also said, it's EPS, in the half-year during the January to June period, stood at Tk1.99, which is 20% growth over the same time of the previous year.

Its net operating cash flow per share also significantly jumped to Tk2.99, which Tk0.93 at the same time of the previous year.

Meanwhile its net asset value per shares increased to Tk34.76 at the end of June 2026.

The insurer attributed the rise in net asset value to an increase in the fair market value of its investment in United Finance shares, while stronger premium collections boosted cash flow.

In 2025, United Insurance made a profit of Tk15.38 crore with an EPS of Tk3.46.

Based on the growth of its profit, it had paid a 15% cash dividend for its shareholders.

As of June, out of its total shares, sponsor-directors held 59.90% stake while institutional investors 20.09% and the general investors 20.01%, according to the DSE.

The country's capital market began the week on a bearish note as the benchmark index retreated further today (19 July), driven by a sharp sell-off in insurance stocks.

Investor sentiment was rattled by the Bangladesh Securities and Exchange Commission's recent proposal to tighten margin lending regulations specifically for the insurance sector.

The benchmark DSEX index of the Dhaka Stock Exchange plunged by 44 points, or 0.75%, to close the session at 5,855, while the blue-chip DS30 index slipped 16 points to settle at 2,210.

Market insiders noted that the insurance sector's dismal performance was a direct reaction to the exchange commission's draft amendment of margin rules, which has been released for public opinion.

Under the proposed guidelines, the regulator intends to cap the margin loan ratio for life insurance companies at 1:0.25, a stark contrast to the 1:1 ratio available for other firms.

Furthermore, the draft introduces strict price-to-book (P/B) value criteria for margin eligibility. While banks and non-bank financial institutions are allowed a maximum P/B of 3x, insurance companies would be restricted to a maximum P/B of 1x, triggering widespread concern among investors that a vast majority of insurance scrips could be excluded from margin facilities, leading to a potential liquidity crisis in the segment, according to the market insiders.

The impact was evident across the board as 52 out of the 58 listed insurance companies witnessed a sharp decline in their share prices. Only four insurance firms could post gains, while two were unchanged.

Analysts from EBL Securities observed that the capital bourse extended its corrective momentum from the previous session due to a profit-taking frenzy. They added that broad-based selling reflected heightened caution surrounding the proposed margin amendments, which exerted sustained pressure on the market's upward trajectory.

Sheltech Brokerage Limited, in its daily market review, highlighted that the market's performance was also shaped by the re-escalation of geopolitical tensions in the Middle East. Although the session saw several early recovery attempts supported by selective buying, the selling pressure intensified significantly from the mid-session onward.

This resulted in a bearish market breadth, with 245 issues declining compared to 98 advances and 49 remaining unchanged.

Trading activity also cooled slightly, with total turnover on the Dhaka Stock Exchange edging down by 4% to stand at Tk1,070 crore.

On the sectoral front, pharmaceuticals, engineering, and textiles remained the focus of trading, but the insurance sector dominated the narrative of the day's decline. Top traded stocks included Malek Spinning, Techno Drugs, Sharp Industries, BSRM Steel, and LankaBangla Finance.

In the individual scrip segment, Green Delta Mutual Fund and United Insurance were among the few gainers, while Meghna Insurance, Global Insurance, and Agrani Insurance featured prominently on the losers' list.

The bearish sentiment was mirrored at the Chittagong Stock Exchange, where the Selective Categories' Index ended 61 points lower at 9,639. The All Share Price Index at the port city bourse dropped 66 points to finish at 15,748, while turnover plunged by 52% to settle at a modest Tk8.82 crore.

The country's premier bourse maintained its robust recovery for another week as the benchmark index successfully reclaimed the psychological 5,900-point threshold for the first time in 22 months.

Driven by high expectations of market-friendly regulatory reforms and a significant spike in liquidity, the Dhaka Stock Exchange (DSE) saw its market capitalisation swell by Tk7,000 crore over the last five trading sessions.

The benchmark DSEX index gained 96 points, or 1.65%, to settle the week at 5,900. This marks the highest closing for the broad index since August 2024. The blue-chip DS30 index also mirrored the bullish trend, advancing by 49 points to close at 2,227.Market breadth remained in favour of the bulls, with 216 issues posting gains against 155 decliners, while 18 scrips remained unchanged.

According to the weekly market review by EBL Securities, the rally was underpinned by sustained investor confidence in a series of capital market development initiatives and a constructive near-term outlook. The week opened on a strong note, fueled by optimism over potential revisions to margin loan rules and measures to enhance market velocity through faster trade settlement cycles and the introduction of scrip netting (intraday trading) facilities. These factors pushed the daily turnover above the Tk1,600 crore mark during the peak of the week's trading.

Market participation saw a healthy rise, with the daily average turnover increasing by 6.58% to reach Tk1,474 crore, compared to Tk1,383 crore in the previous week.

Analysts at Sheltech Brokerage Limited noted that the performance was primarily dictated by investors' continued buying interest, particularly in blue-chip stocks. Although a bout of profit-taking emerged during the final session of the week, it only served to moderate the gains rather than derail the recovery momentum, as buying conviction remained resilient across the floor.

On the sectoral front, trading activity was most concentrated in the general insurance and textile sectors, each accounting for 13.3% of the total weekly turnover, followed by the pharmaceutical sector at 10.6%.

In terms of returns, the cement sector emerged as the star performer with a 7.1% gain, followed by mutual funds and the tannery sector, both rising by 5%.

Conversely, the information technology sector faced a correction of 2.0%, while the paper and travel sectors also saw marginal declines.

Individual stock performance was highlighted by Renwick Jajneswar, which led the gainers' list with a 27.3% price surge, followed by Sharp Industries and Golden Jubilee Mutual Fund.

On the liquidity front, Lovello Ice-cream, Malek Spinning, Bangladesh Shipping Corporation, BRAC Bank, and LafargeHolcim Bangladesh were the most sought-after stocks of the week.

On the losing side, Sunlife Insurance faced the steepest decline, shedding 13.5%, followed by Shurwid Industries and Sonargaon Textile.

Shares of Al-Arafah Islami Bank and Peoples Leasing and Financial Services rose sharply today (16 July) as investors reacted positively to news of board restructurings, which many hope will restore operational efficiency and improve governance.

Defying a broader market correction, Al-Arafah gained 7.45% to close at Tk17.3, while Peoples Leasing climbed 8.33% to Tk1.3 on the Dhaka Stock Exchange (DSE).

The rally in Al-Arafah Islami Bank shares followed a major decision by Bangladesh Bank. On Wednesday, the central bank appointed 14 new directors to the bank's board, expanding it from five to 19 members.

The move effectively allows Al-Arafah's founding shareholders to regain control after nearly a year under a board dominated by five independent directors appointed in August 2024 following a political transition and regulatory intervention.

At the same time, Peoples Leasing informed the bourses that its board had given in-principle approval to a proposal to bring back its original sponsors.

During its board meeting, the company noted it had received expressions of interest (EOIs) from certain sponsor shareholders willing to be included in the board.

The management has decided to forward the matter to the High Court Division of the Supreme Court for final consideration and appropriate orders, a step viewed by the market as a potential move toward stabilising the scam-hit institution.

Despite the gains in the two financial stocks, the broader market ended lower as the benchmark DSEX index fell 25 points to close at 5,900, snapping a five-day winning streak. The blue-chip DS30 index also dropped 15 points to finish at 2,227.

Market analysts from EBL Securities noted that the capital bourse retraced into a corrective phase as persistent intraday selling across major scrips exerted sustained downward pressure. While the market opened with some volatility, profit-taking in recently appreciated stocks gathered momentum throughout the session, dragging the majority of scrips into negative territory.

Market participation also saw a significant contraction, with daily turnover dropping by 26% to stand at Tk1,118 crore.

The market breadth remained bearish, with 240 issues declining compared to 103 that advanced, while 52 remained unchanged.

On the liquidity front, Techno Drugs emerged as the most traded stock, followed by Summit Alliance Port and Malek Spinning.

Among individual stocks, Techno Drugs and Global Heavy Chemical were also among the day's top gainers, alongside the rallying financial institutions. Usmania Glass and Zeal Bangla Sugar, meanwhile, ranked among the session's biggest losers.

The Bangladesh Securities and Exchange Commission (BSEC) will significantly strengthen oversight of brokerage houses and introduce an artificial intelligence (AI)-based market surveillance system to curb irregularities and restore investor confidence, BSEC Chairman Masud Khan said today (18 July).

Speaking at a mock parliament debate titled "Measures to resolve the trust crisis in the capital market" at the Bangladesh Film Development Corporation (FDC), he said the Dhaka Stock Exchange (DSE) has been instructed to transform its surveillance department into an AI-driven system within the next year.

Under the proposed system, any abnormal price surge in a stock will automatically trigger a trading suspension, reducing opportunities for market manipulation. He also announced plans to eliminate the use of "wet signatures" in securities transactions, describing them as a longstanding loophole for unauthorised trades.

The DSE is developing back-office software that will prevent brokerage houses from altering client information or transaction records, he said, adding that supervision of brokerage firms would be intensified to rebuild public trust.

Masud Khan said many retail investors, who now dominate Bangladesh's capital market, lack adequate financial literacy and often chase weak stocks based on rumours instead of company fundamentals. He stressed the need to strengthen the mutual fund sector, citing India's market as an example where mutual funds play a much larger role.

The BSEC chief also said the commission is revising the margin rules introduced last year after they discouraged many investors. Regulatory decisions, he said, would be taken in the broader interest of the market rather than to benefit specific groups.

On the merger of five banks, he acknowledged that shareholders would be affected but said the government and Bangladesh Bank must coordinate to ensure the fairest possible outcome.

The debate, organised by Debate for Democracy and chaired by its Chairman Hassan Ahmed Chowdhury, featured Prime University and Sonargaon University. Prime University, representing the government side, won the debate after arguing that weak regulatory oversight was the principal cause of the capital market's trust deficit.

The DSE brokers association of Bangladesh (DBA) has welcomed the steps of the capital market regulator to amend the margin rules, 2025, calling it a realistic and market-friendly move for the country's capital market.

In a press release today (18 July), the association said under the leadership of BSEC Chairman Masud Khan, the regulatory body is actively pursuing updates to the policy, drawing praise from capital market stakeholders.

The DBA believes that the amended margin rules will help establish a balanced, modern, and forward-looking regulatory framework, which will play a crucial role in the orderly, transparent, and sustainable development of Bangladesh's capital market.
The DBA expressed hope that the draft of the amended margin rules will soon be published for public opinion. After reviewing the draft, the DBA will submit its detailed feedback and recommendations to the Commission if necessary.DBA President Saiful Islam stated that the DBA fully supports the reform activities undertaken by the BSEC to make Bangladesh's capital market stronger, more modern, and investor-friendly.

"The DBA remains ready to work closely with the BSEC in all necessary reform activities for the development of the country's capital market in the future," he said.

In an official statement, the DBA expressed deep appreciation for a stakeholders' meeting organised by the BSEC on 13 July. The meeting brought together representatives from both the DBA and the Bangladesh Merchant Bankers Association (BMBA).

Capital market leaders praised the chairman and the BSEC commissioners for listening to their proposals, suggestions, and operational concerns regarding the draft framework.

According to the DBA, the market regulator's reassurance that stakeholder feedback will be integrated into the reform process signals a highly positive, market-friendly approach. The association believes that the upcoming revised Margin Rules will pave the way for a modern, balanced, and sustainable regulatory framework, crucial for ensuring long-term transparency and orderly development in Bangladesh's capital market.

On 14 July, the BSEC approved draft amendments to the Margin Rules, 2025, relaxing several restrictive provisions introduced last November to improve market liquidity and make margin lending more accessible.

Bengal Biscuits Limited, listed on the SME board of the Dhaka Stock Exchange, has recommended a 10% cash dividend for all shareholders for the financial year ended 30 June 2025.

The decision was approved during a board meeting held on 15 July, where the company finalised its audited financial statements for the fiscal year 2024-2025.

According to the disclosed financial statements on the Dhaka bourse, the company's net profit after tax rose to Tk2.24 crore, up from Tk2.07 crore recorded in FY24. Concurrently, its earnings per share (EPS) increased to Tk2.83, compared to Tk2.61 in FY24.

The company's net asset value (NAV) per share also improved significantly, reaching Tk15.90 by the end of June 2025, up from Tk 4.07 in the prior year. However, its net operating cash flow per share (NOCFPS) witnessed a decline, dropping to Tk4.48 in FY25 from Tk5.94 in FY24.

Bengal Biscuits has set 6 August, as the record date for the entitlement of the recommended dividend. The company's annual general meeting (AGM) is scheduled to take place on 3 September.

The company got listed on the SME platform in 2021 from the over the counter (OTC). Its shares closed 4.63% lower at Tk82 on Thursday.

According to the shareholding report as of June, sponsors and directors hold 29.64% shares in the company, while 9.36% by the institutional investors and the remaining 61% held by public shareholders.

Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan has said the country must first develop a functional conventional bond market before promoting sustainable bonds, as issuing bonds remains more expensive and time-consuming than obtaining bank loans.

Speaking as the chief guest at the Sustainability Summit 2026 in Dhaka on Saturday, Khan said the absence of an effective bond market has remained one of the country's longstanding weaknesses in capital market development.

"Bangladesh does not yet have a functioning bond market," he said. "Apart from government securities (G-Secs), no other bonds are traded on the main board of the Dhaka Stock Exchange. That is the current reality."

The day-long summit was organised by Bangladesh Brand Forum and Sustainable Brand Initiative under the Bangladesh Innovation Conclave at the Radisson Blu Water Garden Hotel.

Khan said sustainable bonds would be essential for financing future development, but Bangladesh was not yet ready because the conventional bond market itself had yet to become effective.

"We must move towards sustainable bonds eventually. However, before that, we need to strengthen the foundation of the traditional bond market," he said.

The BSEC chairman said he had identified the key obstacle shortly after assuming office.

"If I want to borrow from a bank, I can obtain financing within three months at a fixed cost. But raising funds through bonds takes about a year and costs more. Naturally, businesses will choose bank loans," he said.

He said the commission would work to reduce the time required for bond issuance and lower the cost of raising funds through bonds so that it becomes cheaper than bank borrowing.

"We will implement reforms to shorten the bond issuance process and make bond financing more cost-effective," he added.

Turning to the stock market, Khan expressed concern over the dominance of retail investors, saying many invest without sufficient knowledge of the market.

"Unfortunately, most investors in our stock market are retail investors. Many do not have a proper understanding of shares and invest simply because someone tells them prices will rise," he said.

On corporate governance, Khan stressed that companies with sound governance practices enjoy greater public confidence.

He said independent directors in Bangladesh often fulfil only a legal requirement rather than making meaningful contributions to corporate oversight.

"Many independent directors still do not know how to contribute effectively in board meetings. They need more training and greater awareness," he said, drawing on his experience of serving on the boards of multinational companies operating in Bangladesh.

In his opening remarks, Bangladesh Brand Forum Founder and Managing Director Shariful Islam said sustainability should no longer be treated as an annual discussion but embedded into the core of every business.

"As Bangladesh moves towards achieving the Sustainable Development Goals by 2030 and prepares for graduation from the least developed country category, responsible business is no longer optional. It is the foundation of our competitiveness," he said.

The summit brought together leading business executives, policymakers, industry experts, academics and social entrepreneurs to discuss sustainability, responsible business practices and corporate governance.

The Bangladesh Securities and Exchange Commission (BSEC) has asked the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) to submit a unified, comprehensive amendment proposal to reform the decade-old listing regulations.

The directive from the regulator comes after the premier bourse, DSE, sent three separate proposals over the last ten months seeking piecemeal changes to rules governing company inspections, direct listing, and delisting of securities.

To make change in the listing regulations, the commission needs to change some sections or provision at least four rules promulgated 2022 to 2025, and one directive promulgated in 2018, according to sources at the commission.Instead of passing isolated amendments, the capital market regulator wants a complete overhaul of the listing regulations, 2015, to align them with newer market policies enacted over the years.So, the regulator, incorporating all necessary changes to ensure listing regulation is timely updated, asked the bourse to submit comprehensive amendment proposals in the rules, according to a letter issued to the bourse this week.In the letter, the commission said subsequent promulgation of listing regulations, 2015, the commission formulated several regulatory instruments that are relevant to the listing regulations.

These rules are – securities exchange rules, 2020, prohibition of insider trading rules, 2022, mutual fund rules, public offer of equity securities rules, 2025, and corporate governance code, 2018.

The commission said these regulatory instruments contain provisions that are relevant to the amendment of the listing regulations, 2015.

According to the letter, the regulator received a proposal from the bourse almost nine months ago in September 2025, to amend section 54(1) regarding the inspection of listed companies.

As per the section, the exchange, on cause, may inspect at any time, if it is necessary to conduct an inspection for the interest of investors, the affairs of any issuer of listed securities with prior approval of the commission and shall report to the Commission within fifteen days of completion of such inspection.

Essentially, the bourse urged the commission to remove the requirement to obtain prior regulatory approval before inspecting any company, arguing that empowering the bourse in this manner would prevent time-consuming delays.

In March this year, the bourse also had sent another proposal to the commission on amending some sections for direct listing of the listing regulations.

In the listing regulations, 8 to 13 sections are mandated for the direct listing. Currently, the direct listing on the bourse is only allowed for the state-owned companies keeping a bar on applying the sections for private firms.

The present commission bats on the allowing private and multinational firms' enlisting on the bourse under direct listing. But to make it real, the commission and the bourse need to amend some rules and permission from the government.

On 22 June, the bourse sent another proposal to the commission overhauling the section 51, which dictates the delisting of securities. In the amendment proposals, as a part of launching a cleansing campaign to purge the toxic equities and protect investor interests.

Currently, the bourses have a mandate to delist any listed firm that fails to meet listing regulations. However, the existing rules lack a clear outline for the delisting process and investor protection.

The proposals include delisting companies that have remained closed for a prolonged period, failed to pay dividends or failed to hold annual general meetings.

Additionally, the proposals suggest that if directors or owners are found responsible for a company's poor financial condition through a special audit, their assets should be confiscated.

Other proposals include appointing special auditors to determine actual assets, restricting sponsors from obtaining bank loans, and barring them from serving as directors in any other listed company.

Grameenphone Ltd has announced a 105% interim cash dividend, equivalent to Tk10.50 per share, following the approval of its audited financial results for the first half of 2026.

The decision was approved at the company's board meeting held yesterday (14 July).

For the first half of 2026, the telecom operator reported earnings per share (EPS) of Tk10.52, net operating cash flow per share of Tk22.27 and a net asset value (NAV) per share of Tk41.51.

The record date has been set for 12 August.

Stocks opened higher on Wednesday, extending the previous session's gains as investor confidence strengthened following a series of market-supportive regulatory reforms and fiscal measures.

The Bangladesh Securities and Exchange Commission (BSEC) on Tuesday approved several investor-friendly initiatives, including the introduction of scrip netting for intraday trading and amendments to the Margin Rules aimed at making margin lending more flexible and investor-friendly, which further boosted investor confidence.

By 11:00 am, DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), had gained 54 points, or 0.91 per cent, to 5,965, supported by strong buying in large-cap and fundamentally sound stocks.

Market operators said investor sentiment has remained upbeat following the budgetary measures announced by the government, which include a range of incentives designed to revitalise the country's capital market. They added that the latest regulatory reforms have further reinforced expectations of a more efficient, transparent and liquid market.

Analysts said the fiscal and regulatory measures are expected to make equity investment more attractive, encourage greater participation from both retail and institutional investors, strengthen the mutual fund industry, and enable companies to raise long-term funds more efficiently through the capital market.

Trading activity also remained buoyant. Turnover on the premier bourse reached Tk 5.15 billion within the first hour of trading, reflecting sustained buying interest across major sectors.

Market breadth remained firmly positive, with 237 issues advancing, 105 declining and 43 remaining unchanged by 11:00 am, indicating broad-based gains across the market.

ACI Formulations was the most-traded stock by value till then, with shares worth Tk 210 million changing hands.

Entrepreneurs have proposed amending the Bangladesh Securities and Exchange Commission (Public Offer of Equity Securities) Rules, 2025 to allow companies to use more than 70% of funds raised through initial public offerings (IPOs) or repeat public offerings (RPOs) to repay long-term loans.The proposal was placed at a stakeholder consultation organised by the Bangladesh Securities and Exchange Commission (BSEC) yesterday to discuss possible amendments to the Rules.Riyad Mahmud, president of the association representing listed companies, confirmed to The Business Standard that the organisation had submitted several recommendations during the meeting.
Under the existing Public Offer of Equity Securities Rules, 2025, companies are allowed to use up to 30% of IPO or RPO proceeds to repay existing debt. However, the facility is limited to long-term loans taken for projects or BMRE (Balancing, Modernisation, Rehabilitation and Expansion) purposes. The loans must not be classified or rescheduled, while companies are also required to submit an auditor's certification, a bank certificate and detailed disclosures in the prospectus regarding the proposed utilisation of proceeds.

Mahmud said the existing 30% cap is not practical for many industrial companies, particularly those that have borrowed heavily to establish or expand manufacturing facilities.

"Many countries do not impose any ceiling on using IPO proceeds for debt repayment. In practice, companies can use almost all of the proceeds for that purpose if necessary. We are not asking for a 100% allowance, but at least more than 70% of IPO proceeds should be allowed for repaying long-term loans," he said.

According to him, raising the limit would reduce interest expenses, strengthen companies' financial positions and enable them to focus more on production expansion and business growth after listing.

He also said relaxing the restriction would encourage more manufacturing companies to enter the capital market and raise equity capital instead of relying heavily on bank financing.

The association also proposed easing the mandatory roadshow requirement for companies seeking to go public through the book-building method.

Mahmud said companies are currently required to organise roadshows before receiving BSEC approval for their IPO applications. If the Commission ultimately rejects an application, the expenditure incurred on the roadshow becomes unnecessary.

"Our proposal is to allow companies to hold roadshows after receiving IPO approval from the Commission. That would reduce unnecessary costs and make the IPO process more efficient," he added.

Meanwhile, the Bangladesh Merchant Bankers Association (BMBA) also submitted a series of recommendations seeking amendments to the Rules.

A senior merchant banker, speaking on condition of anonymity, told The Business Standard that the association has proposed removing the provision that limits the post-IPO paid-up capital of companies using the fixed-price method to Tk125 crore.

According to the merchant banker, the cap discourages many fundamentally strong companies from choosing the fixed-price route for listing.

The association has also recommended removing the provision that prevents companies from applying for an IPO within two years if they increase their capital through any share issuance other than bonus shares.

Merchant bankers argue that the restriction unnecessarily delays the listing plans of otherwise eligible companies.

The BMBA has further proposed reviewing the requirement that at least 40 eligible institutional investors participate in the bidding process under the book-building method. According to the association, securing participation from 40 eligible investors is often difficult under prevailing market conditions, resulting in delays in the IPO process.

In addition, merchant bankers recommended simplifying the overall IPO approval process, including streamlining documentation, facilitating bank loan verification procedures and ensuring that statutory auditors complete audits more efficiently and on time.

They believe these measures would shorten approval timelines, reduce documentation requirements and make the listing process faster and more efficient for prospective issuers.

The meeting was attended by the BSEC chairman and commissioners, senior Commission officials, and representatives from the Financial Reporting Council (FRC), Institute of Chartered Accountants of Bangladesh (ICAB), Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), DSE Brokers Association of Bangladesh (DBA), Bangladesh Association of Publicly Listed Companies (BAPLC), Bangladesh Merchant Bankers Association (BMBA), CFA Society Bangladesh, as well as merchant banks, issue managers and other capital market stakeholders.

The benchmark index of the Dhaka Stock Exchange (DSE) continued its upward momentum for the fifth consecutive session today (15 July), as investors remained optimistic about supportive policy shifts and a constructive near-term outlook for the capital market.

The broad DSEX index gained 15 points to settle at 5,926, up from 5,911 in the previous session. The blue-chip DS30 index also mirrored the gain, rising 15 points to close at 2,242.

The sustained rally over the past five sessions has added 156 points to the broad index, while the total market capitalisation of the premier bourse jumped by approximately Tk12,000 crore during the same period.

According to the daily market review by EBL Securities, the market opened on a firm footing, supported by broad-based accumulation in large-cap scrips. However, the gains were moderated by intermittent profit-taking across the board, which pared a portion of the early advances. Sustained buying interest toward the close eventually enabled the index to maintain its positive trajectory.

Despite the rise in the benchmark index, market participation saw a slight cooling. Total turnover on the DSE decreased by 8.2% to Tk1,516 crore, compared to the previous session.

The market breadth also turned negative, with 218 issues declining, 131 advancing, and 51 remaining unchanged out of the 396 securities traded.

On the sectoral front, the pharmaceutical sector dominated trading activity, accounting for 14.3% of the total turnover, followed by the banking sector at 12.2% and the textile sector at 11.1%.

In terms of returns, the cement sector emerged as the top performer with a 2.3% gain, followed by ceramics at 1.2% and mutual funds at 1.0%.

Conversely, the jute sector faced the steepest correction, dropping 2.6%, while the services and tannery sectors declined by 1.6% and 1.2%, respectively.

Individual stock performance featured ACI Formulation, International Leasing, Peoples Leasing, Fareast Finance, and Aramit Cement as the top gainers of the day.

In a notable regulatory move, the Dhaka Stock Exchange suspended the trading of Renwick Jajneswar due to an "unusual" price hike.

On the flip side, Pragati Life Insurance, Jute Spinners, and Appollo Ispat emerged as the worst-performing shares of the day.

BSRM Steel, BRAC Bank, Malek Spinning, and LafargeHolcim Cement Bangladesh remained the most-traded stocks by value.

The bullish sentiment was mirrored at the Chittagong Stock Exchange (CSE), where the Selective Categories' Index (CSCX) gained 65.5 points and the All Share Price Index (CASPI) rose by 91.3 points.