The Bangladesh Association of Publicly Listed Companies (BAPLC) has proposed a clear and measurable Capital Market Development Roadmap for 2026-30, with specific priorities, targets and timelines to ensure policy stability and regulatory predictability.

The proposal was made at a meeting between BAPLC and the Bangladesh Securities and Exchange Commission (BSEC) at the commission's Agargaon office on 24 September.

BAPLC President Riad Mahmud led the association's delegation, while BSEC Chairman Masud Khan and Commissioners Tanwir Habib Rahman, Md Nafeez Al Tarik and Hossain Sadat attended the meeting.

The association said the roadmap should be developed through consultations with all relevant stakeholders and provide a long-term framework for coordination among the regulator, stock exchanges, listed companies, institutional investors and other market participants.

It proposed focusing on improving IPO quality, increasing institutional investment, developing corporate bonds and other investment products, and improving market liquidity.

More flexibility in IPO proceeds

BAPLC proposed raising the existing 30% limit on the use of IPO proceeds for loan repayment under the Public Offer of Equity Securities Rules 2025.

It said many potential issuers have financed business expansion through long-term industrial loans and should therefore be allowed greater flexibility to use IPO proceeds to repay loans, including classified or rescheduled loans, subject to proper disclosure, regulatory oversight and investor protection.

Same-group executives

The association also sought an exception to the Corporate Governance Code provision that bars key executives of a listed company from simultaneously holding executive positions in another company.

BAPLC proposed allowing such arrangements within the same corporate group, citing the prevalence of group and family-owned businesses in Bangladesh.

It suggested safeguards including board approval, prior BSEC approval, proper disclosure and compliance with conflict-of-interest and related-party transaction rules.

Action against 'AGM parties'

BAPLC urged BSEC to take action against what it described as "AGM parties" who allegedly buy nominal shares before record dates and later demand money or other benefits from companies ahead of annual general meetings.

The association said such groups may create disorder or disrupt AGMs if their demands are not met, affecting genuine shareholders and corporate governance.

It called for preventive measures and regulatory action against the practice.

Surveillance, buybacks and board diversity

BAPLC also called for stronger surveillance and enforcement against market manipulation, insider trading and other irregularities.

It proposed regulatory frameworks for employee stock option plans and share buybacks, saying these could provide additional options for listed companies and investors.

On female independent directors, the association recommended shifting from profession-based eligibility to a competency-based approach. It suggested considering expertise in technology, artificial intelligence, cybersecurity, engineering, manufacturing, ESG, climate risk and digital transformation.

It also proposed a National Independent Directors Talent Registry and a Board Skills Matrix to better match directors' expertise with companies' needs.

Other proposals included reviewing CIB reporting requirements for independent directors, clarifying the definition of beneficiaries under the Workers' Profit Participation Fund, and allowing companies to allocate 1% of expenditure to CSR activities.

The BAPLC document presented the proposals for discussion with BSEC. It did not indicate that the commission had formally accepted the proposed roadmap or set a timeline for its implementation.

Top News
• Direct listing can deepen the capital market  01 Oct 2026
• Roll out BSEC corporate governance rules in phases  01 Oct 2026
• Phased implementation stressed for proposed BSEC governance framework   01 Oct 2026
• Seven banks dropped from CSE50 benchmark index   01 Oct 2026
• Beximco Pharma board reshuffled, Salman F Rahman left out   30 Sep 2026
• Five banks to raise Tk3,500cr for capital, green financing  30 Sep 2026
• Stocks slip for fourth straight session  30 Sep 2026
• Phoenix Finance to sell 20 lakh fund units after 263% price surge  29 Sep 2026
• 17,332 investors to get refunds from DSE IPF  29 Sep 2026
• BSEC pushes unified back-office system to curb investor fund embezzlement  29 Sep 2026
• DSE extends losing streak to third day amid earnings jitters   29 Sep 2026
• Dhaka stocks fall for second session as earnings anxiety weighs  28 Sep 2026
• Envoy Textiles recommends 32.5% cash dividend  28 Sep 2026
• Bond market grows, but trust deficit holds it back  28 Sep 2026
• Retailizing Mutual Funds to Deepen Bangladesh's Capital Market  28 Sep 2026
• Apex Footwear to raise Tk 500cr through preference shares  28 Sep 2026
• Foreign investors return to Dhaka stocks as reforms, MSCI move lift confidence  27 Sep 2026
• Rancon Motor Bikes signs advisory deal for proposed public listing  27 Sep 2026
• Textile firms lead DSE turnover in first half of September  27 Sep 2026