BAPLC urges BSEC to remove listing hurdles, simplify procedures

The association of publicly listed companies has urged the stock market regulator to remove longstanding obstacles to new listings and simplify regulatory procedures, saying such measures are essential to attract quality companies to the secondary market.
The call came during a meeting between the Bangladesh Association of Publicly Listed Companies (BAPLC) and the Bangladesh Securities and Exchange Commission (BSEC) at the latter's office on Thursday.
A BAPLC delegation led by its President Riad Mahmud met acting BSEC Chairman Tanwir Habib Rahman and discussed measures needed to deepen the country's capital market and encourage more companies to go public.
The Financial Express talked to BAPLC Secretary General Md. Amzad Hossain and BSEC spokesperson Abul Kalam to learn about the issues discussed at the meeting. The BSEC also issued a press statement after the meeting.
Speaking at the meeting, Riad Mahmud said Bangladesh's financial sector remains heavily bank-centric, creating excessive pressure on banks while limiting alternative financing options for businesses seeking long-term capital.
He noted that a vibrant equity market would enable companies to raise funds directly from investors, reducing dependence on debt financing and supporting sustainable business growth.
"A stronger capital market would diversify financing sources, reduce pressure on the banking sector and provide businesses with a sustainable avenue for raising long-term capital," he said.
Policymakers and market stakeholders have increasingly emphasised the need to strengthen the capital market as an alternative source of long-term financing.
The country's equity market has not seen a new listing for more than two years, the longest period of drought in decades. Prospective issuers remain reluctant to enter the market amid concerns over valuation, price restrictions and policy support.
Market stakeholders have repeatedly urged the government for tax benefits, fair valuation mechanisms and supportive policy incentives, as profitable and well-governed companies are not entering the secondary market.
Various regulatory, procedural and market-related challenges continue to hinder new listings.
Mr Mahmud stressed the need to strengthen the role of the capital market in financing industrial expansion, infrastructure development and private-sector investment, which are critical for sustaining economic growth.
According to BAPLC, attracting firms from the manufacturing, technology, pharmaceuticals, infrastructure and service sectors would significantly improve market depth, quality and liquidity while creating broader investment opportunities for both institutional and retail investors.
Mr Mahmud said many financially sound and reputable companies had expressed interest in raising funds through the stock market but remained discouraged due to challenges in the listing process.
He also called for removing regulatory and procedural bottlenecks that often delay or dissuade companies from seeking stock market listings.
"The market could benefit significantly if more well-governed and profitable companies were encouraged to go public," he said, adding that such listings would not only broaden investment opportunities but also improve liquidity and investor confidence.
The BAPLC president also expressed willingness to work closely with the securities regulator to promote the benefits of listing among corporate entities and inspire greater participation in the stock market.
The BSEC acting chairman, Tanwir Habib Rahman, assured BAPLC of extending support for market development.
"The commission remains committed to fostering a fair, transparent and efficient market capable of supporting the country's long-term economic aspirations," he said.

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