BSEC set to revamp IPO rules for fairer price discovery

The securities regulator is set to overhaul its IPO approval framework to attract fundamentally strong companies through a fairer price discovery process.
According to a press release issued on Tuesday, the Bangladesh Securities and Exchange Commission (BSEC) will repeal the existing Bangladesh Securities and Exchange Commission (Public Issue) Rules, 2015 and replace it with a new set of regulations titled Bangladesh Securities and Exchange Commission (Public Offer of Equity Securities) Rules, 2025.
A draft of the 2025 rules will soon be published to seek public feedback before final adoption. Once approved, the BSEC will begin accepting and approving IPO applications under the new framework.
The new rules aim to bring greater transparency and accountability to the IPO approval process, the release said. Parties involved in the process - including issuer companies, auditors, and issue managers - will face stricter responsibilities and oversight.
A major focus of the new framework will be the IPO price determination mechanism. The draft outlines detailed guidelines on pricing and valuation to attract high-quality companies to the secondary market.
Following the change in political leadership in August last year, the newly formed BSEC established a five-member taskforce to recommend reforms for enhancing governance, transparency, investor confidence, and regulatory efficiency in the capital market.
The taskforce reviewed key areas such as IPO and public issue rules, the performance of market intermediaries, oversight systems, accountability, and technological upgrades.
It found that the existing public issue regulations had discouraged well-performing companies from seeking listings. Based on its findings, the taskforce submitted a set of recommendations that shaped the new IPO rules.
Additionally, the taskforce has proposed amendments to other regulations, including those governing margin loans and mutual funds, to help market intermediaries and listed firms align with global standards of governance.
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