A severe wave of panic selling gripped the Dhaka Stock Exchange (DSE) yesterday, dragging all indices sharply into the red, with 89% of stocks declining and market capitalisation falling by Tk6,781 crore.

Intensifying risk-averse sentiment and aggressive sell-offs by both institutional and individual investors pushed DSEX, the broad market index, down by over 103 points to close at 5,558, according to bourse data.

Market participants attributed the sharp fall to the ongoing countrywide utility crisis, particularly involving gas and electricity, which has severely dampened investor confidence and driven investors to the sidelines to protect their portfolios from further erosion.

They also pointed to unexpected intervention by the stock exchange regarding large buy and sell orders, which has unsettled major individual investors, prompting many to stay on the sidelines out of caution.

According to DSE data, this is the first single-day fall of over 100 points in DSEX since the new commission assumed office in June.

On 5 April, DSEX had lost 107 points; since then, the index has seen volatility, but declines had not exceeded 100 points until yesterday. Two and a half months earlier, DSEX had stood at 5,554 points on 22 June, according to data.

Following that, the benchmark index gradually climbed to the 5,900 mark as investor participation rose slightly on hopes surrounding the new chairman and commissioners assuming office at the regulatory body.

However, since 11 August, DSEX has lost 345 points, while market capitalisation has plunged by Tk17,065 crore as market sentiment and investor participation deteriorated due to the issue of changing in margin rules and other factors.

Saiful Islam, president of the DSE Brokers Association of Bangladesh, told TBS, "Overall investor confidence remains shaky due to the worsening energy crisis, with no immediate solutions in sight."

He added, "We have received allegations regarding stock exchange interference in large buy and sell orders. We have taken this seriously, discussed the matter with regulators, and are trying to resolve the issue."

He said due to the alleged market interference, some large investors may have moved to the sidelines. "We are talking with regulators to solve the issue," he stated.

When asked about the nosedive in indices and turnover, Abul Kalam, spokesperson for the Bangladesh Securities and Exchange Commission (BSEC), said the current regulator does not interfere in the market, noting that the market experiences ups and downs driven by the forces of demand and supply.

"We did not detect any suspicious trading in our surveillance regarding the decline in the market. It is normal trading," he said.

89% stocks price down

As per data of the DSE, an 89% stock price declined as massive sell-offs gripped the market since the beginning of the trading sessions yesterday.

Of the traded 389 stocks, 348 stocks prices declined, while 20 advanced and 21 remained unchanged. Of the advanced stocks, mutual funds dominated the gainer chart.

Trading session started on a positive note but did not sustain after two minutes as heavy sell-offs dumped rapidly with panic selling accelerating between 12pm and 2pm yesterday as stop-loss triggers and margin pressures forced investors to offload holdings.

Analysts attribute this sharp pullback to persistent macroeconomic uncertainty, institutional profit-taking, and a lack of fresh triggers to rebuild investor confidence in the short term.

EBL Securities in its daily market commentary said, the capital bourse suffered the brunt of intense selling pressure in the opening session of the week, dragging the benchmark index down by more than 100 points to a two and a half month low, as the market pulse swiftly shifted to a bearish tone amid prolonged uncertainties over a nationwide gas and electricity crisis, along with apprehensions over a sharp downturn in corporate earnings.

"From the outset of the session, the broad index remained on a downward trajectory as sector-wide sell-offs swept across the trading board, reflecting widespread risk aversion among investors. The relentless selling spree intensified in the latter half of the session, triggering broad-based erosion across equities and further weighing on investors' already battered portfolios, it said.

On the sectoral front, Textiles sector accounted for the highest share of turnover by 28.8%, followed by General Insurance 14.2% and Pharma 11.2%.

All the sectors posted negative returns, where General Insurance, Textile and Paper exhibited the most corrections on the bourse.

The port city bourse, CSE, also ended in negative terrain. The Selective Categories' Index (CSCX) and All Share Price Index (CASPI) lost 88.1 points and 171.0 points, respectively.

The country's premier bourse ended a volatile week with marginal gains as a mid-week surge in bargain hunting successfully offset heavy selling pressure seen in the early sessions.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) inched up by 6 points, or 0.11%, to settle the week at 5,662 points.

Despite the fragile recovery, the market witnessed a "tug-of-war" between opportunistic buyers and cautious sellers. The blue-chip DS30 index followed the broad index's lead, gaining 5 points to close at 2,140. However, the DSE SME Index faced a setback, dropping 26 points to settle at 1,046.

Market participation saw a slight improvement, with the daily average turnover rising by 6% to stand at Tk608 crore.

EBL Securities, in its weekly market review, said the market came under heavy selling pressure at the beginning of the week amid concerns that persistent domestic headwinds could hurt corporate earnings. The absence of fresh positive catalysts also pushed the DSEX below the 5,600 mark after around two months.

The market, however, received some respite in the middle of the week as bargain hunters accumulated beaten-down shares following favourable remarks from regulatory authorities regarding long-term structural reforms. The recovery attempt lost momentum in the final session as weak conviction over the market's direction triggered quick profit-taking.

Sheltech Brokerage Limited said market performance was largely shaped by the competing forces of buying interest and selling pressure. Optimism surrounding BSEC Chairman Masud Khan's recently proposed market-development initiatives supported buying, while concerns over the energy-supply crisis kept investors cautious.

The brokerage said renewed buying emerged after the BSEC chairman announced several market-development initiatives, but persistent selling pressure kept the market volatile. Going forward, progress on the proposed reforms, developments in the energy-supply situation, and upcoming earnings and dividend announcements from June-closing companies are likely to influence market direction.

Textile stocks dominated trading, accounting for 33.6% of total turnover, followed by general insurance at 12% and pharmaceuticals at 11.3%.

Sector performance was mixed. General insurance led the gainers with a 2.7% rise, followed by travel and jute, each gaining 1.4%. Services was the biggest loser, declining 2.1%.

Beximco Pharma, Malek Spinning, Paramount Textile, Beacon Pharma and Saiham Cotton were among the major stocks supporting the DSEX during the week.

Saiham Textile, Sharp Industries, Malek Spinning, Saiham Cotton and IPDC Finance recorded the highest average turnover.

Saiham Cotton led weekly gainers, rising 15.9%, followed by Nahee Aluminum at 11.1% and Bangladesh National Insurance at 10.5%. Safko Spinning gained 10.5%, while Nitol Insurance advanced 9.6%.

On the other hand, Sharp Industries suffered the steepest decline, falling 20.6%. Lovello Ice-cream dropped 15.7%, Apex Spinning declined 13.6%, Reliance Insurance Mutual Fund One fell 11.5%, and Tung Hai Knitting lost 10.6%.

The trustee board of Vanguard AML Rupali Bank Balanced Fund has approved a proposal to voluntarily convert the closed-end mutual fund into an open-end scheme, potentially improving liquidity and providing unitholders with a more flexible exit option.

According to an official disclosure issued by the Investment Corporation of Bangladesh (ICB), the fund's trustee approved the conversion proposal submitted by its asset manager, Vanguard Asset Management Ltd (VAML), in line with the Bangladesh Securities and Exchange Commission (Mutual Fund) Rules, 2025.

The fund will seek unitholders' approval for the proposed conversion at a Special General Meeting (SGM) scheduled for 26 October 2026 at 11:00am at RAOWA Convention Hall in Mohakhali, Dhaka.

Unitholders will vote at the meeting on whether to proceed with the conversion of the closed-end fund into an open-end scheme.

The trustee has set 4 October 2026 as the record date, on which trading of the fund's units on the stock exchanges will be suspended until further notice to determine the list of eligible voters.

The conversion initiative comes at a time when the fund has shown signs of a financial turnaround. After grappling with net losses since 2022, the fund reported a significant recovery in the first half of 2026.

For the January–June period, the earnings per unit (EPU) stood at Tk1.19, a sharp reversal from a loss of Tk0.57 in the same period last year. The recovery was particularly strong in the second quarter (April–June), which contributed Tk0.91 to the EPU.

Despite the earnings rebound, the fund's cash flow remains under pressure, with a negative net operating cash flow per unit of Tk0.68 for the first half of the year.

As of 30 June 2026, the Net Asset Value (NAV) per unit at market price was Tk9.57, while at cost price, it stood at Tk10.72. Listed on the Dhaka Stock Exchange in 2016, failing to declare any dividends since 2024.

Market observers believe the shift to an open-end structure will be a major relief for investors, as closed-end funds in Bangladesh have historically traded at steep discounts to their NAV. In the last trading session on 3 September, the fund's unit price closed 1.25% higher at Tk8.10 on the Dhaka bourse.

After the IPO market has remained dry for a long time, the securities regulator is optimistic that new primary issues will be floated in the next few months.

Many of the aspiring issuers have already signed agreements with issue managers and are working to prepare financial statements. They include BRB Cables, Solar Equity Venture, Confidence Infrastructure, Super Star Electrical Accessories, and Shoeniverse Footwear.

The companies are yet to fix the amounts to be raised through IPOs or debt securities.

Apart from them, City Group has also signed an agreement with LankaBangla Investments to raise around Tk 15 billion from the capital market. The conglomerate is looking to raise funds through IPO, private equity, preference shares, corporate bonds, Sukuk and/or other permissible capital market vehicles.

"We hope a good number of companies will be listed in the next few months," said Masud Khan, chairman of the Bangladesh Securities and Exchange Commission (BSEC).

Apart from easing the public issue rules, the regulator is set to introduce a hybrid mechanism allowing direct listing and IPO for the same companies.

Talking to the FE, several issue managers said companies were approaching them to learn about the process of going public.

Among the issue managers, ICB Capital Management has signed an agreement with two companies, including BRB Cables, and is in talks with another five companies interested in issuing primary shares.

"The [market] scenario will change following the listing of some good companies," said Mazeda Khatun, managing director of ICB Capital.

Asked about the trend, a senior official of the Dhaka Stock Exchange (DSE) said many companies had already visited the bourse to discuss listing.

Sources at the DSE said seven companies intend to float IPOs, while another eight have shown interest in raising funds through bonds.

"Some of them have also shared bitter experiences with the previous long-standing process of getting clearance from the regulator to float shares," said an official who preferred not to be named.

The Public Issue Rules 2025 reduced the period for approving or rejecting an IPO proposal to within 55 days.

The factors prompting issuer companies to go public include the pressure of bank loan repayment and the reduced scope of receiving fresh loans from banks. That is why highly leveraged companies are moving towards raising funds from the capital market.

Besides the shorter IPO approval period, the scope for fair valuation of shares and further amendments to the public issue rules under consideration have also encouraged many companies to raise capital from the market.

The securities regulator is working on further amendments to the public issue rules.

Asked about this, Iftekhar Alam, chief executive officer of LankaBangla Investments, said that apart from signing an agreement with Shoeniverse Footwear, the firm was in talks with five other companies interested in going public.

Confidence Infrastructure plans to raise Tk 3 billion through an IPO to finance electric vehicle (EV) battery production, business expansion, debt repayment and investments in new sectors, including food.

The company has appointed UCB Investment Limited as issue manager for the proposed IPO.

Aamra Networks Limited has recommended a nominal 0.10% cash dividend for its general shareholders only for FY2025, which amounts to just 1 paisa per share.

The announcement follows a disastrous financial year for the IT sector company, during which its earnings plummeted by 94%, and it struggled with a deepening cash flow crisis that has already relegated it to the "Z" category on the stock exchange.

According to the company's financial statements finalised in a board meeting on 3 September, the total dividend payout for general shareholders will amount to a mere Tk6.22 lakh against 6.22 crore shares.

In a move to preserve some liquidity, the company's sponsors and directors, who hold 3.07 crore shares, will not receive any portion of this dividend.

This token gesture places Aamra Networks among the lowest dividend-yielding companies on the Dhaka Stock Exchange, mirroring recent ultra-low payouts from firms like Acme Pesticide and National Feed Mill.

The company's financial health appears to be in a tailspin. For the 2024-25 fiscal year, the earnings per share (EPS) fell to a negligible Tk0.13, down from significantly higher levels in the previous year. The fourth quarter alone, spanning April to June 2025, saw the company incur a net loss of Tk5.95 crore.

The downturn showed no signs of abating in the 2025-26 fiscal year either. For the July-March period, revenue dropped by 22% to Tk55.85 crore, culminating in a nine-month net loss of Tk4.12 crore.

Management attributed this sharp decline to a combination of falling sales and a rise in operating expenses. However, internal sources point to a more systemic issue. A senior official from Aamra Networks, speaking on condition of anonymity, revealed that the company is facing an acute fund crisis driven by the non-recovery of dues from corporate clients. Since the company primarily serves large businesses, the failure of these clients to clear payments for services rendered has crippled the firm's cash flow.

This is reflected in the net operating cash flow per share, which stood at a negative Tk0.55 at the end of March 2026.

The 1 paisa dividend carries significant regulatory weight. Under current rules, a company declaring any dividend up to 5% is placed in the "B" category, while those paying 10% or more are eligible for the "A" category.

Moving out of the "Z" category is crucial for the company, as both "A" and "B" category stocks are eligible for margin loan facilities under the BSEC's new regulations.

Aamra Networks was downgraded to the junk category in February 2025 after it failed to disburse a previously approved 10% cash dividend for the 2023-24 fiscal year.

However, the path back to the "B" category remains complicated. The company failed to hold its Annual General Meeting (AGM) for the 2024-25 fiscal year within the legally stipulated time. Consequently, the date for the upcoming AGM is subject to consent from the honorable High Court. The record date for the 1 paisa dividend has been set for 24 September.

Aamra Networks had previously been an active player in the capital market, raising Tk56.25 crore through its initial public offering in 2017 and a further Tk93 crore through a rights offer in 2024 for business expansion.

Despite these capital injections, the company's recent operational paralysis has left investors wary. On Thursday, its shares closed marginally higher at Tk19.80, though market analysts warn that the company's reliance on "paper profits" and its struggle to collect actual cash from clients remains a major red flag for the bourse, according to the market insiders.

The Bangladesh Securities and Exchange Commission (BSEC) has started discussions with major local and foreign companies and business groups to bring fundamentally strong and reputed companies to the capital market through direct listing.

As part of the initiative, the commission held a meeting with representatives of leading companies and business groups at its Agargaon office today (3 September) to discuss ways to bring such companies to the market through direct listing.

Representatives of Unilever, Nestlé Bangladesh, MetLife, bKash, Banglalink, KAFCO, Incepta Pharmaceuticals, Nagad, Meghna Group, PRAN-RFL, DBL Group, Abul Khair Group, ACI, Walton, Akij Resources and Confidence Group, among others, attended the meeting.

BSEC Chairman Masud Khan said the number of strong companies in Bangladesh's capital market remains inadequate. The commission therefore wants to bring reputed flagship companies to the market through direct listing to deepen and broaden the capital market.

He said greater participation by large and quality companies would help attract both domestic and foreign investment while creating more quality investment opportunities.

The BSEC has already approved the draft "Bangladesh Securities and Exchange Commission (Direct Listing of Securities on the Stock Exchange) Rules, 2026". The commission approved the draft at its 1,027th meeting on 1 September.

Under the proposed rules, eligible companies will be able to list directly on the stock exchanges by offloading shares held by existing shareholders, without issuing new shares through an initial public offering (IPO).

At today's meeting, the BSEC presented the eligibility criteria for direct listing, application and listing requirements, and the proposed price discovery process.

Representatives of companies, merchant banks, issue managers, stock exchanges and other stakeholders shared their views and recommendations on various aspects of the proposed rules. Discussions focused on bringing capable and reputable companies to the market while ensuring investor protection and maintaining market discipline.

Masud said listing on the capital market enhances a company's reputation and acceptability. It can also improve share liquidity and create scope for better valuation. Existing shareholders get an opportunity to liquidate their holdings, while the company can eventually raise capital from the market to finance future expansion.

Alongside direct listing, the BSEC is also considering a hybrid approach under which large companies could offload shares held by existing shareholders while issuing new shares to raise fresh capital.

Representatives of several companies expressed interest in entering the capital market through both direct listing and the hybrid approach, which combines the offloading of existing shares with the issuance of new shares.

The BSEC's initiative aims to bring large, fundamentally strong companies that have remained outside the capital market for years under the listing framework. The commission believes greater participation by such companies will increase the number of quality listed firms, deepen and broaden the market, and create more investment opportunities.

Multinational companies operating in Bangladesh must be brought under the capital market, Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan said today (4 September).

The commission will first encourage such companies to voluntarily list on the stock market, but if they refuse, the BSEC has the legal authority to take steps in the public interest, he said while inaugurating a two-day workshop titled "Capital Market Products and Rules" for members of the Capital Market Journalists Forum (CMJF) at Subarna Gram in Narayanganj.

The workshop, organised by the BSEC, is being held on 4 and 5 September.

"There are many large domestic and multinational companies in Bangladesh. Unless these good companies are brought to the capital market quickly, the market cannot develop as expected," Masud said.

He said the BSEC would work to bring several large and flagship companies to the capital market within the next six months to one year.

"Come voluntarily. But if you do not come voluntarily, we also have the weapon to make it happen," he said.

The BSEC chairman said securities law allows the commission to direct certain companies to list in the public interest. A legal definition of "Public Interest Company (PIC)" will also be introduced for this purpose.

Calling on large companies to enter the capital market, Masud said listing gives a company a stronger corporate identity and establishes a market value for it.

That market value can then be used for acquisitions or mergers, while shareholders who want to exit a business can sell their shares more easily, he said.

He also pointed to succession problems in family-owned businesses, saying disputes often emerge among owners when businesses pass from one generation to another, sometimes leading to fragmentation.

Listing can provide an exit option for shareholders who do not want to remain involved in the business, he added.

The BSEC chairman also announced plans to introduce direct listing and a hybrid system to bring large companies to the market more quickly.

He said the existing IPO process takes too long. Under the proposed hybrid system, a company would raise new capital through one portion while directly listing existing shares through another.

Masud said the BSEC plans to introduce "extended audits" to simplify the IPO process.

He said auditors should verify not only whether a company's financial statements are accurate, but also whether its land, machinery, inventory, receivables and supplier information reflect the actual situation.

Under the proposed system, auditors would certify the authenticity of the assets and financial information submitted by IPO applicants. This would help the Dhaka Stock Exchange (DSE) complete its IPO scrutiny process more quickly, he said.

Noting that Bangladesh's capital market remains largely dependent on retail investors, Masud said institutional investment must be increased to make the market sustainable.

The BSEC plans to expand opportunities for provident funds and other funds to invest in shares as well as corporate bonds, he said.

In developed markets, pension funds and insurance companies are major investors, he said, adding that Bangladesh also needs to bring such institutional investors into the market.

Referring to the removal of the floor price after he took office, Masud said the move had prompted global index provider MSCI to move towards withdrawing special measures imposed on Bangladesh's market.

MSCI has said it will resume regular reviews of Bangladesh's index and implementation of corporate events from November 2026, he said.

The BSEC chairman also outlined plans to give the DSE greater powers, modernise market surveillance and introduce an artificial intelligence-based surveillance system.

On the development of the corporate bond market, Masud said the commission was working to reduce main-board listing fees. This would encourage banks and other institutions to list on the main board and gradually expand the country's bond market, he added.

Dhaka Electric Supply Company Limited (Desco) has received formal consent from the Bangladesh Securities and Exchange Commission (BSEC) to issue 4.59 crore irredeemable non-cumulative preference shares to the government.

According to a price-sensitive disclosure filed with the Dhaka Stock Exchange (DSE) today (2 September), the shares carry a face value of Tk10 each, amounting to a total of Tk45.90 crore.

These shares are being issued in favour of the Government of Bangladesh, represented by the Secretary of the Power Division under the Ministry of Power, Energy, and Mineral Resources, against equity already provided by the state.

This marks the third such instance in recent years where the state-owned power distributor has regularised government capital injections through the issuance of preference shares.

Previously, in July 2024, the regulator approved a substantial Tk607 crore issuance, followed by a smaller Tk2.38 crore issuance in May 2025.

Following the announcement, Desco's share price experienced a marginal correction, edging down by 0.43% to settle at Tk23 on the premier bourse.

The company's standing in the capital market remains under scrutiny, as it was downgraded to the 'Z' or junk category in October 2025 for failing to reward shareholders with dividends for two consecutive financial years.

In terms of financial performance, Desco's latest unaudited reports indicate a volatile but recovering bottom line. For the first nine months of the 2025-26 fiscal year (July-March), the company reported an earnings per share (EPS) of Tk1.46, marking a significant turnaround from a loss of Tk1.98 per share in the corresponding period of the previous year. However, the third quarter alone (January-March 2026) saw a net loss of Tk0.81 per share, although this was a notable improvement from the Tk1.83 loss recorded a year earlier.

As of 31 March 2026, the company's net asset value (NAV) per share stood at Tk39.05, while its net operating cash flow per share rose to Tk13.85 from Tk8.98 in the prior year.

The country's capital bourse extended its winning streak for a second consecutive session today (2 September), driven by broad-based bargain hunting on beaten-down shares, pushing daily market turnover up 22.5% to Tk731 crore.

The benchmark DSEX Index of the Dhaka Stock Exchange (DSE) rose 23 points, or 0.41%, to close at 5,660 points, compared to 5,637.31 points in the previous session.

The Shariah-compliant DSES Index advanced 4.70 points, or 0.42%, to 1,135.12, while the blue-chip DS30 Index gained 3.45 points, or 0.16%, to finish at 2,125.49.

DSE data showed the market opened strong, hitting an intraday peak of 5,673 points before temporary selling pressure dragged the index down to 5,644 points by mid-morning. The index later regained momentum to close in positive territory, marking the second straight day of gains.

Late-session accumulation in textile and insurance stocks secured a green close at the end of the trading session.

Out of 395 issues traded, 239 stocks advanced, 92 declined, and 57 remained unchanged, the data showed.

EBL Securities, in its daily market commentary, said the benchmark index of the capital bourse extended its recovery for a second consecutive session, as opportunistic investors sustained broad-based bargain hunting, accumulating beaten-down scrips at perceived attractive price levels, although broader investor sentiment remained cautious amid persistent domestic concerns.

The market opened on an optimistic note, although early gains were pared back as the benchmark index faced intermittent selling pressure, with investors remaining active on both sides of the trading fence. However, sustained buying interest, particularly in the textile and insurance sectors, persisted throughout the session, ultimately enabling the market to close higher, it said.

On the sectoral front, Textile sector stocks accounted for the highest share of turnover by 39.5%, followed by general insurance by 13.1% and Pharma sector stock by 10.3%.

Sectors mostly posted positive returns, where General Insurance by 2.3%, Textile 2% and Tannery 1.4% exhibited the highest return, while only Financial Institution and Jute sector stocks exhibited marginal correction on the bourse.

The port city bourse, CSE, ended in positive terrain. The Selective Categories' Index (CSCX) and All Share Price Index (CASPI) advanced by 31.7 points and 56.2 points, respectively.

Shares of Saiham Textile Mills have more than doubled in just 25 trading sessions, even as the company maintains it has no undisclosed price-sensitive information to explain the rally and despite one of its two production units remaining shut for Balancing, Modernisation, Rehabilitation and Expansion (BMRE) work.

Data from the Dhaka Stock Exchange (DSE) show that Saiham Textile shares closed at Tk18.80 on 26 July. By today (2 September), they had climbed to Tk38.20, gaining Tk19.40, or 103.19%.

The stock gained another Tk3.20, or 9.14%, today alone. A total of 7.13 million shares changed hands on the day, with trading activity also rising significantly in recent weeks.

Such an unusual movement of Shares of Saiham Textile Mills has attracted the attention of the Bangladesh Securities and Exchange Commission (BSEC).

Abul Kalam, executive director and spokesperson of the BSEC, told TBS that the regulator has taken note of the unusual price and trading volume.

"The matter has come to the BSEC's attention. We will examine why the price and trading volume are rising unusually. If any irregularities are found, action will be taken," he said.

The DSE sought an explanation from Saiham Textile on 6 August over the unusual movement in its share price and trading volume. In its response on 9 August, the company said it had no undisclosed price-sensitive information that could explain the surge.

The company had earlier given a similar response to the Chittagong Stock Exchange (CSE), denying any undisclosed price-sensitive information behind the unusual movement.

The sharp rise has come at a time when one of Saiham Textile's two production units is closed for BMRE.

The old spinning unit, established in 1993, was shut down on 1 June due to ageing machinery. According to the company, the old equipment had reduced production capacity, affected yarn quality and increased production costs.

Under the BMRE project, the company plans to sell the old machinery and install modern automated spindle machines. The factory building will also be renovated, followed by commissioning and trial production. The entire process was initially expected to take around 18 months.

Md Neyamat Ullah, company secretary of Saiham Textile, told TBS that the company had no information about the recent movement in its share price.

"We have no knowledge about the movement in the share price. There is also no undisclosed price-sensitive information at present," he said.

He added that although the shutdown was announced for around 18 months, the company was trying to complete the BMRE work earlier.

Saiham Textile has two production units. While the old spinning unit is closed, its melange unit, established through a rights share issue and commercially launched in 2013, remains operational.

Market participants said the unusual price and volume movement warrants regulatory scrutiny, particularly as one unit is closed and the company has denied having any undisclosed price-sensitive information. They said the regulator should examine whether any coordinated trading or manipulation is behind the sharp movement of the shares of Saiham Textile.

Meanwhile, the company's latest financial results do not show a major improvement that would independently explain the surge.

During July 2025-March 2026, Saiham Textile posted a net profit of around Tk4.59 crore, up about 7% from the same period a year earlier. Its earnings per share (EPS) rose to Tk0.51 from Tk0.47.

The company's net asset value (NAV) per share stood at Tk43.75 as of 30 June 2025. At Tk38.20, the stock was still trading below its NAV today.

Saiham Textile expects the BMRE project to improve production capacity and efficiency once the upgraded spinning unit resumes operations.

However, the financial benefits of the project have yet to materialise as the unit remains closed.

Against this backdrop, the 103% rise in the share price in just 25 trading sessions has raised questions among investors and market participants. The BSEC's decision to examine the unusual price and trading volume has placed the stock under closer regulatory scrutiny.

Bangladesh's benchmark stock index significantly underperformed its regional peers in August, posting the second-worst return among the tracked markets.

According to the "Monthly Market Wrap" for August by Sheltech Brokerage Limited, the DSEX declined 297 points, or 5.05% month-on-month, to 5,598, snapping a four-month winning streak.

Among eight tracked regional markets, only Thailand's SET Index performed worse, declining 1.75%, while India's S&P BSE Sensex fell 1.46%.

By contrast, Vietnam's VN-Index gained 5.01%, Indonesia's IDX Composite rose 4.64%, Sri Lanka's ASPI advanced 0.99%, Pakistan's KSE 100 increased 0.50%, and Malaysia's FTSE Bursa Malaysia KLCI edged up 0.06%.

The sharp divergence highlights the weakness of Bangladesh's market compared with most regional peers during the month.

DSEX falls as energy crisis overshadows reforms

Sheltech Brokerage said in its report, the DSEX's performance was primarily shaped by the energy supply crisis, uncertainty surrounding the finalisation of margin rule amendments and reports of heightened regulatory oversight.

The market initially witnessed a tug-of-war between buying and selling interest as investors assessed the energy crisis and awaited clarity on the proposed margin rule changes. This came despite Bangladesh Bank's decision to reduce the policy rate by 50 basis points, which was expected to provide some support to economic activity and liquidity, it added.

The margin rule amendment was eventually finalised in the middle of the month, offering greater flexibility to investors. However, the regulatory development failed to reverse the market's downward trajectory, read the report.

Selling pressure persisted as concerns over the energy crisis intensified, particularly over its potential impact on industrial production, corporate earnings and the broader economy. Media reports suggesting possible regulatory tightening further unsettled investors, said Sheltech Brokerage.

"Although subsequent regulatory clarification denied some of the reported potential measures, investor confidence remained weak. Selling pressure intensified toward the end of August, pushing the DSEX to an approximately two-month low."

At the same time, trading activity deteriorated sharply. Average daily turnover fell 30.16% month-on-month to Tk876 crore, while market breadth declined, reflecting broad-based selling pressure amid subdued participation.

Market insiders said retail investors remained the most active participants during the downturn, particularly on the selling side. Foreign investors were also more active in selling than buying, while institutional investors were mostly on the buying side during sessions when the DSEX declined.

The weakness was particularly evident among large-cap stocks. While gains remained concentrated in a handful of Z-category and mid-cap companies, broad-based weakness in large-cap shares exerted significant pressure on the benchmark index. The market's sectoral performance was also overwhelmingly negative.

Almost all sectors posted negative returns during the month. IT led the decline with a 9.94% fall, followed by mutual funds at 9.56%, cement at 9.08%, ceramics at 8.37% and non-bank financial institutions at 8.36%.

The monthly gainers' list was led by Tung Hai Knitting, whose share price rose 53.57%, followed by GBB Power with a 50% gain and Saiham Textile with 43.09%. Nitol Insurance and Alltex Industries gained 25.56% and 19.61%, respectively.

On the other hand, FAR Chemical suffered the steepest decline among the major losers, falling 32.79%. Sharp Industries dropped 31.91%, ML Dyeing 26.97%, AIBL First Mutual Fund 26.15% and Sunlife Insurance 25.65%.

Investors await energy relief, earnings catalysts

The market's August performance stands in sharp contrast to the gains recorded by most regional peers, raising concerns over the domestic market's ability to attract fresh investment amid persistent economic challenges.

Sheltech Brokerage said the energy crisis has emerged as a particularly important concern because prolonged shortages can disrupt factory operations, reduce capacity utilisation and eventually weaken corporate earnings. Investors are therefore closely watching developments in energy supply and their impact on businesses.

"The upcoming earnings and dividend announcements from companies with June year-end financial periods are also expected to influence market direction in the near term."

According to Sheltech Brokerage, investors will likely assess whether renewed buying interest can emerge and help the DSEX defend its 5,527–5,643-point support zone.

The market's ability to hold this range could be important in determining whether the recent correction stabilises or extends further.

Meanwhile, the combination of regulatory reforms and weak investor sentiment presents a mixed picture. The finalisation of the margin rules removed some uncertainty, while monetary easing offered another potential positive catalyst. Yet these measures have so far failed to outweigh concerns surrounding energy supply and the broader economic outlook, said Sheltech Brokerage.

With a view to tightening regulatory oversight and enforcing strict supervision, the Bangladesh Securities and Exchange Commission (BSEC) constituted an 8-member standing joint inspection panel to conduct surprise inspection of stock brokers and stock dealers across the country.

The eight-member inspection panel is comprising of members from the regulatory body, stock exchanges and central depository of Bangladesh Limited (CDBL), according to official order of the commission.

On Monday, BSEC Chairman Masud Khan, speaking at an open discussion titled "The Current State of the Bangladesh Capital Market and Way Forward", organised by the DSE Brokers Association of Bangladesh (DBA) said, "Much has been discussed about surveillance of brokers. A broker may have several types of problems. Some are regulatory in nature, while another is a shortfall in the CCA, which has accumulated over many years.

"When irregularities occur, the commission imposes fines, which is a regular measure. But when there is a major shortfall, simply imposing a fine is not enough. A fine leads to a certificate case, which can continue for a long time.

"We need to adopt a risk-based approach and conduct surprise visits. In some cases, CCA shortfalls were detected, the money was returned, and then withdrawn again. The commission and the DSE have agreed to conduct visits on a regular basis."

Considering past incidents where brokerage houses embezzled client funds using duplicate servers to display fake information, the regulator aims to prevent further misappropriation through surprise inspections.

Capital market investors usually deposit their hard-earned money through brokerage houses into listed shares of the capital market.

These funds are kept separately in Consolidated Customers' Accounts (CCA), which can only be used to buy and sell shares on behalf of the investors.

However, recent cases show that some brokers embezzled funds from these accounts for personal use, creating severe client deficits.

This embezzlement has severely damaged investor confidence and discouraged further capital market investment, leading to a steady decline in active investors.

So, now the capital market regulator planned to increase surveillance in to the stock brokers, who were licensed to work for the investors for buying and selling shares of the listed companies also for the its own account.

The joint panel

As decided by the capital market regulator, a standing eight-member joint inspection panel will be formed, comprising two representatives each from the Bangladesh Securities and Exchange Commission (BSEC), Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), and Central Depository of Bangladesh (CDBL).

Each institution will nominate two members to represent them.

Once formed, the panel will conduct unannounced inspections of brokerage houses to review Consolidated Customers' Accounts (CCAs), regulatory compliance, margin lending rules, and other related issues.

Through a letter to the respective institutions, the reglator sent seprate letters asking nomination of two members in the standing joint inspection panel.

In the letter, the BSEC stated that the Commission has decided to constitute a standing Joint Inspection Panel for conducting spot/surprise inspections/visits of stock brokers and stock dealers.

The initiative aims to tighten regulatory oversight, enforce strict compliance with securities laws, and safeguard general investors' interests.

According to previous news of TBS, on the day of an inspection, officials will meet at the BSEC office in the morning and select a brokerage from a list of firms identified as potentially risky based on suspicious activities, possible irregularities and other risk indicators.

The inspection team will then be sent to the vicinity of the selected firm before the inspection notice is issued.

The BSEC will subsequently send a spot inspection letter to the firm's head, after which the team will arrive at the office and begin the inspection.

The procedure is intended to minimise the time available for firms to alter records, manipulate software or conceal irregularities.

The securities regulator is set to finalise the direct listing framework within a month, allowing well-governed private companies, state-owned enterprises and multinational firms to enter the stock market by bypassing the need to float an IPO.

"The draft direct listing rule is almost complete and will be placed for approval at the commission meeting tomorrow (Tuesday)," said Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan on Monday.

The draft will be published for public opinion this week before being finalised within the next month, he added.

Mr Khan made the remarks at an open discussion titled "The Current State of the Bangladesh Capital Market and Way Forward", organised by the DSE Brokers Association of Bangladesh (DBA) at the DSE Tower in Dhaka.

Currently, only state-owned entities can use the direct listing mechanism to list by floating at least 25 per cent of their shares.

Once the direct listing framework is finalised, the Central Depository Bangladesh Limited (CDBL), the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) will be listed, said the BSEC chief.

The initiative is expected to encourage quality companies to enter the market, particularly large private firms, state-owned enterprises and multinational companies that are otherwise reluctant to raise funds by issuing primary shares.

The commission is also pursuing a series of structural reforms, including a hybrid IPO mechanism, T+1 settlement, activation of the Central Counterparty Bangladesh Limited (CCBL), development of the bond market and introduction of an extended audit for issuers.

Listing of "public interest companies"

The BSEC is also working on a framework to bring certain companies to the capital market.

Referring to Section 20A of the Securities Act, Mr Khan said the commission has the authority to direct companies to come to the market when it considers such listing necessary in the public interest.

A new regulation would define "public interest companies", and they would be required to list, Mr Khan said.

The BSEC is also seeking to shorten the IPO approval process by introducing an "extended audit" to cover a company's assets, land, machinery, receivables and liabilities in greater detail than a conventional statutory audit.

Under the proposed system, an issuer would submit its IPO application to the stock exchanges, with a copy to the BSEC. The exchanges would conduct the initial scrutiny and raise necessary queries with the issuer, while the commission would give the final approval.

Acknowledging the current weak investor confidence, Mr Khan said the regulator would not interfere in the normal movement of the capital market or seek to artificially support it.

"The market will run on its own strength," he said.

The commission would investigate unusual trading or price movements and take action if irregularities are detected, he said.

Mr Khan said the regulator's role was not to increase the market index or turnover, but to ensure a fair, transparent and orderly market and protect investors.

He said structural reforms, quality listings and modern market infrastructure were essential to restoring confidence among local and foreign investors.

The BSEC chief also said the board of the Central Counterparty Bangladesh Limited (CCBL) is expected to be reconstituted within a month, paving the way for the long-delayed launch of its operations as a clearing company. He said he expected the CCBL to become operational within a year and that it would strengthen risk management and automate clearing and settlement processes.

The regulator is also targeting the introduction of T+1 settlement by the end of this year. A roadmap has been prepared following discussions with the Dhaka Stock Exchange (DSE), the Chittagong Stock Exchange (CSE), the Central Depository Bangladesh Limited (CDBL) and foreign custodian banks.

Moreover, the securities regulator is looking to expand the bond market by reducing fees and encouraging issuers to list bonds on the main board.

Mr Khan said BRAC Bank was planning to issue a Tk 10-billion social bond on the condition that it would be listed on the DSE main board.

"We want every bond to be listed on the main board," he said.

He expressed optimism that a significant number of bonds will be listed on the main board over the next year, creating investment opportunities for mutual funds, merchant banks and other institutional investors.

Surprise inspections

The regulator will strengthen surveillance of brokerage houses through risk-based and surprise inspections rather than relying on penalties.

"Surprise inspection is very important. Both the DSE and we believe that surprise inspections should be conducted regularly, not after five years," Mr Khan said.

The regulator will also examine whether large orders or repeated transactions are being used to manipulate stock prices. Mr Khan said placing a large order by itself was not illegal, but a series of transactions aimed at influencing prices could constitute an offence.

DSE Chairman Mominul Islam said the market had long been considered "overly regulated," preventing it from developing according to its own dynamics. The exchange is working to introduce scrip netting and bring technological changes to its matching engine and order management system, he said. The DSE is also preparing to launch trading in open-ended mutual funds and upgrading its website to attract institutional and foreign investors.

DSE Managing Director Nuzhat Anwar said much remained to be done to improve governance among listed companies, adding that the DSE and the BSEC were working in coordination on investor protection, margin requirements, Consolidated Customer Accounts and IPOs.

DSE Director Richard D'Rozario stressed the need for stronger surveillance to detect irregularities at an early stage.

DSE Director Minhaz Mannan Emon said global economic uncertainty, including the oil market crisis, was affecting Bangladesh's capital market among other factors. He called for coordinated efforts among the regulator, exchanges and market participants to address the challenges facing the secondary market.

The country's premier bourse returned to positive territory today (1 September), providing a much-needed respite to the capital market after a prolonged downturn.

Driven by aggressive bargain hunting and renewed optimism over structural reforms, the benchmark DSEX index of the Dhaka Stock Exchange (DSE) surged by 39 points, or 0.70%, to settle at 5,637.

Market participation saw a healthy spike as total turnover on the DSE jumped by 25% to reach Tk596 crore, compared to the previous session. The day's trading was characterised by overwhelming bullish dominance, with the market breadth showing 300 issues advancing, 50 declining, and 38 remaining unchanged.

According to EBL Securities' daily market review, the ailing capital market got some relief as investors viewed prevailing prices as attractive entry points. Bargain hunters stepped in to accumulate beaten-down stocks, particularly in sectors that had undergone sharp corrections.

The market opened on an optimistic note, supported by favourable remarks from regulators on the capital market's long-term development. Although selling pressure emerged intermittently after mid-session, it was not enough to wipe out the morning gains, with buyers remaining in control until the close, it added.

Sheltech Brokerage Limited observed that the rally was driven mainly by renewed buying interest and optimism over the Bangladesh Securities and Exchange Commission's (BSEC) recent market-development initiatives. The benchmark index climbed to an intraday high of 5,674.16 points, but late-session profit-taking erased much of the gain.

The index eventually closed near its intraday low of 5,624 points as some investors opted to book quick profits amid persistent domestic challenges, it also said.

On the sectoral front, the textile sector dominated the floor, accounting for 27.9% of the total turnover, followed by the banking and pharmaceutical sectors at 12.2% and 12.0%, respectively.

Nearly all sectors posted gains, led by mutual funds, which rose 4.2%, followed by general insurance at 2.2% and information technology at 2.0%. Cement was the only laggard, declining marginally by 0.4%.

Among individual stocks, First Finance was the top gainer, rising 8.88%, followed by First Janata Bank Mutual Fund and PHP First Mutual Fund, both up 8.82%.

On the flip side, Jute Spinners was the top loser, falling 3.61%, followed by Meghna Condensed Milk and Nurani Dyeing. IPDC Finance, Saiham Textile and Saiham Cotton were among the most actively traded stocks.

The bullish sentiment was stronger at the Chittagong Stock Exchange (CSE), where the Selective Categories' Index (CSCX) gained 37 points to 9,237, while the All Share Price Index (CASPI) rose 60 points to 15,130. Trading activity surged 207%, with turnover reaching Tk51 crore.

The Dhaka Stock Exchange (DSE) plans to introduce financial derivatives by January 2028 after the Bangladesh Securities and Exchange Commission (BSEC) approved its action plan for launching the new asset class.

According to a BSEC press release issued after a commission meeting on today (1 September), the bourse will initially introduce index futures, with contracts based on the blue-chip DS30 index expected to be the first products.

The approved roadmap covers regulatory reforms, trading and other infrastructure, clearing and settlement systems, and risk management measures. BSEC will also monitor the DSE's progress in implementing the plan.

A senior DSE official said the bourse also plans to introduce exchange-traded fund-type instruments under the new segment. Unlike conventional share trading, derivatives allow investors to trade contracts linked to the future price movements of underlying assets.

The DSE will procure a new multi-asset trading engine by 2028 to handle derivatives and multiple clearing systems. Its existing Nasdaq-provided trading engine, which mainly supports equity trading, is scheduled to expire in 2027.

In preparation, the DSE will conduct feasibility studies, workshops and seminars for market participants.

The introduction of derivatives is expected to deepen the capital market and give local and foreign investors additional tools for hedging and risk management.

The Bangladesh Securities and Exchange Commission (BSEC) has relaxed dividend compliance requirements for foreign investors, tying the remittance deadline to the issuance of a Double Taxation Avoidance (DTA) certificate by the National Board of Revenue (NBR).

The decision was finalised at a commission meeting held today (1 September), according to a press release.

Under the revised guidelines, listed companies must remit declared or approved dividends to non-resident foreign shareholders within 30 days of receiving the DTA certificate from the NBR.

However, the remittance must still be completed within the relevant financial year.

The move is expected to ease a key compliance challenge listed companies have faced in distributing dividends to overseas shareholders.

The BSEC has also revised the timeline for dividend compliance reporting by listed companies. After completing dividend distribution to domestic shareholders, companies will now be required to submit a Preliminary Dividend Compliance Report.

Following the remittance of dividends to foreign shareholders, companies will then have to submit a final Dividend Compliance Report to the BSEC and the respective stock exchange within 30 days of the remittance.

The revised framework is intended to improve transparency while providing companies with greater flexibility to complete dividend payments to non-resident investors.

Previously, listed companies faced difficulties meeting fixed dividend remittance deadlines because obtaining DTA certificates from the NBR could take time. Such administrative delays created a mismatch between the regulatory deadline for dividend payment and the actual availability of the required tax documentation.

By starting the 30-day remittance period from the date of receiving the DTA certificate, the BSEC has sought to align the compliance requirement with the actual process of obtaining tax relief documentation.

Market analysts believe that by linking the 30-day deadline to the receipt of the NBR's tax certificate, the BSEC is providing a more realistic and enforceable timeline for companies.

This clarity is being seen as a positive signal to global fund managers, suggesting that Bangladesh is moving toward international best practices in dividend processing and capital repatriation.

The Bangladesh Securities and Exchange Commission (BSEC) has relaxed a stringent rule regarding the transfer of shares held by sponsors and directors of "Z-category" companies, shifting administrative authority directly to stock exchanges.

In a commission meeting held today (1 September), the regulator decided that its prior approval will no longer be required for specific equity security transactions involving these troubled firms.

According to the amendment, the commission has specifically waived the need for direct BSEC permission in cases involving the confiscation of shares due to loan defaults and the transmission of shares following a shareholder's death.

This decision follows a thorough review of a previous directive issued on 20 May 2024, which had imposed a blanket restriction on all forms of share transactions – whether on the trading platform or off-market – for sponsors and directors of non-financial companies listed in the junk category.

Under the revised framework, the country's bourses will now be empowered to facilitate and execute such transfers in accordance with existing listing regulations.

Market analysts believe this shift toward deregulation will eliminate unnecessary bureaucratic hurdles and expedite legal processes, particularly for lenders seeking to recover defaulted dues or legal heirs managing inheritance matters.

The 2024 directive was originally implemented to prevent sponsors and directors of poorly performing or non-compliant companies from dumping their holdings without regulatory oversight. While monitoring remains intact, the commission aims to streamline operations by delegating specific responsibilities directly to the stock exchanges.

The move marks another step in the commission's broader push to simplify market operations and reduce excessive intervention, according to officials.

The Bangladesh Securities and Exchange Commission (BSEC) has approved a draft regulation allowing qualifying companies to get listed on stock exchanges directly, without going through an Initial Public Offering (IPO), by offloading a portion of existing shareholders' holdings.

The decision was taken at the 1,027th commission meeting held on Tuesday at the BSEC office, chaired by its Chairman Masud Khan.

Under the draft “Bangladesh Securities and Exchange Commission (Direct Listing of Securities by Stock Exchange) Rules, 2026”, companies will be able to list through direct listing by offloading at least 10 to 20 percent of shares held by existing shareholders, instead of raising fresh capital through an IPO.

Eligible companies include those wholly or majority owned by the government; companies where the government holds at least 10 percent of paid-up capital directly or indirectly; companies majority owned by foreign shareholders; BTRC-approved telecom and ICT service or infrastructure companies with a minimum paid-up capital of Tk 300 crore; scheduled banks, financial institutions and insurance companies with at least three years of commercial operation; and companies with an annual turnover or total assets of at least Tk 500 crore.

Companies will also need to fulfil additional conditions set by the respective stock exchange, depository and central counterparty as prescribed by the commission.

The draft rules will be published in newspapers and on the BSEC website shortly for public opinion, the commission said in a press release.

Investor confidence in Bangladesh's stock market is weakening as persistent selling pressure, weak fresh fund inflows and concerns over the economic outlook continue to weigh on market activity.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), fell another 16 points today (31 August) to close at 5,598, taking its total loss to 306 points, or nearly 5%, in just 13 trading sessions. The index also slipped below the 5,600-mark for the first time in around two months.

According to EBL Securities' daily market commentary, the downbeat capital market extended its negative trajectory despite brief recovery attempts by bargain hunters. Persistent domestic headwinds and a lack of fresh positive catalysts continued to weigh on investor sentiment.

Although the market staged intermittent recovery attempts, the indices failed to sustain the momentum as selling pressure regained dominance in the latter half of the session, reflecting weak investor conviction across the market, the brokerage said.

Trading activity has also plunged. Daily turnover on the DSE fell 61%, or Tk734 crore, over the past 18 trading sessions, from Tk1,211 crore on 4 August to Tk477 crore today.

The DS30 index declined 9 points to 2,113, while the DSES index fell 4 points to 1,124. Of the 391 companies and mutual funds traded today, 192 declined, 128 advanced and 69 remained unchanged.

Market participants say the lack of fresh or net fund inflows is one of the biggest challenges facing the market. Much of the current trading is driven by existing investors reallocating funds rather than new money entering the market.

As a result, buying pressure remains too weak to sustain a recovery. They said a durable market rally requires a steady flow of fresh funds; otherwise, selling pressure can quickly overwhelm buying interest, even in fundamentally strong stocks.

The DSEX had earlier climbed from around 5,200 points to nearly 5,900, but failed to sustain the momentum. The recent correction has further increased uncertainty over the market's near-term direction.

The weakness comes despite bank deposit and lending rates starting to decline, while yields on government treasury bills and bonds are also moving downward. Under normal circumstances, this could make equities more attractive, but investors have yet to shift significant funds into the stock market.

Market participants said many institutional and large retail investors are staying on the sidelines. While some have reduced their equity exposure, others are waiting for lower prices before making fresh investments. Meanwhile, some retail investors are selling shares over fears of further losses, adding to the selling pressure.

Ongoing gas and electricity shortages are also weighing on investor sentiment. Many manufacturing companies are operating below capacity due to inadequate gas and power supplies, raising concerns over production, sales and profitability in sectors such as textiles, ceramics and plastics.

EBL Securities also highlighted concerns over the short-term market outlook amid the gas and power crisis as a factor negatively affecting investor sentiment.

Increased regulatory scrutiny is another source of caution. The DSE is investigating several listed companies, while the Bangladesh Securities and Exchange Commission (BSEC) has intensified spot inspections of market institutions.

Market participants said stronger regulatory oversight is positive in the long run as it can improve transparency and accountability. However, a series of investigations and regulatory actions could make investors cautious in the short term, especially amid weak liquidity.

The Tk775 crore rights issue of United Commercial Bank (UCB) could further strain liquidity, as some investors may sell existing shares to raise funds for the issue, increasing selling pressure in the secondary market.

However, they do not see the current weakness as the start of a prolonged downturn. Investor interest could return if uncertainty eases, fresh funds enter the market and fundamentally strong stocks become attractive at lower valuations.

For now, the 306-point fall in the DSEX in 13 sessions and the 61% decline in turnover over 18 sessions indicate a significant deterioration in market liquidity and investor confidence.

The Bangladesh Securities and Exchange Commission (BSEC) has unveiled an ambitious roadmap to rescue the country's capital market from a decade of stagnation, promising to dismantle the "analog" hurdles of the "paper age" and transition into a technology-driven institutional powerhouse.

Speaking at an open discussion titled "The Current State of the Bangladesh Capital Market and Way Forward", organised by the DSE Brokers Association of Bangladesh (DBA) at DSE Tower today (31 August), BSEC Chairman Masud Khan outlined a "Mega Plan" featuring digital share trading, T+1 settlement, AI-powered surveillance and mandatory market participation for large companies.

He identified the "IPO drought", liquidity crunch and lack of investor confidence as the major challenges facing the market, and said the regulator aims to shift it from a "retail-dominated, rumor-based" environment to one driven by professional analysis and valuation.

Masud, who has 46 years of corporate leadership experience, said the current government is perhaps the most market-friendly in Bangladesh's history. He cited the FY2026-27 budget's market-oriented measures, particularly the treatment of the 15% tax on individual dividend income as a "final tax liability".

He said such structural changes are needed to encourage informed investment rather than herd behaviour.

Reflecting on his first two months at the regulator, Masud said the removal of the floor price on his second day in office was a pivotal step towards restoring free-market dynamics.

He said MSCI (Morgan Stanley Capital International) has decided to resume publishing the Bangladesh Index from November, while the resolution of Beximco Pharmaceuticals' GDR listing issue on the London Stock Exchange within a month of his tenure has helped restore the country's international credibility and could encourage other large local companies to pursue global listings.

Trading to go fully digital

Masud described the current system of using physical documents for buy and sell orders as a "horror story", saying it creates scope for signature forgery and fund misappropriation.

He said BSEC will introduce digital order placement through mobile apps, bringing the process in line with global practices.

The regulator will also digitise its internal file management and adopt IAS 34 to allow "condensed" quarterly reporting, which Masud said would reduce excessive regulatory queries to listed companies.

Easier IPO, direct listing

Addressing the IPO drought that has persisted since 2024, Masud said the existing public-issue rules are discouraging entrepreneurs from entering the capital market.

He said BSEC is overhauling direct-listing rules, previously restricted to government companies, to allow all companies, including large multinationals and profitable local firms, to list directly.

The mandatory offloading requirement will also be reduced from 25% to 10%. BSEC is additionally planning a "hybrid" capital-raising model combining IPO and direct listing, which Masud said could be approved within seven days for fundamentally strong companies.

To further institutionalise the market, BSEC is formulating rules to bring "Public Interest Entities" (PIEs) into the capital market. The category would cover companies using Tk300 crore or more in public funds through equity or bank loans.

Masud also indicated that a new law could require major multinational branches, including Standard Chartered and HSBC, to register as local companies and eventually list on the stock exchange.

T+1 settlement, AI surveillance

BSEC is moving towards a T+1 settlement cycle, with a long-term goal of T+0, or same-day settlement.

Masud said he is in discussions with Bangladesh Bank to extend Real-Time Gross Settlement (RTGS) hours to facilitate the cash side of stock transactions.

He has also given the Dhaka Stock Exchange (DSE) one year to shift its surveillance department to an AI-based automated system. The system would use automatic triggers to detect and halt suspicious trading, reducing human intervention and potential bias, he said.

Masud called on market stakeholders to support the reforms, saying BSEC would not intervene in price levels but would remain focused on ensuring a fair, transparent and internationally compliant market.

DSE cuts bond listing fees

DSE Managing Director Nuzhat Anwar and Chairman Mominul Islam expressed support for coordinated reforms.

Mominul said the DSE board had reduced listing fees for bonds by up to 80% to encourage fixed-income trading on the main board.

He also said the DSE is working to resolve the long-standing issue of investors whose funds are trapped in closed brokerage houses, estimating that 95% of affected investors would be repaid in full by the end of this year.

Meanwhile, Riad Mahmud, president of the Bangladesh Association of Publicly Listed Companies (BAPLC), urged BSEC to act as a "vanguard" for listed companies.

He said the worsening energy crisis is now a direct threat to industrial survival and called for BSEC and Bangladesh Bank to work together to ensure listed companies receive priority in working-capital financing to protect production and jobs.

He also urged the regulator to remove legal barriers preventing stronger corporate groups from taking over sick or non-operational listed companies.