New BO accounts surge as equity market regains momentum

The number of new beneficiary owner (BO) accounts rose sharply in the first half of 2026, signalling renewed investor confidence as the recovering stock market attracted fresh participants after years of subdued activity.
Data from the Central Depository Bangladesh Ltd (CDBL) showed that 34,877 new BO accounts were opened between January and June, reflecting growing interest from retail investors amid a sustained recovery in share prices and improving market sentiment.
The total number of BO accounts stood at 1,675,252 at the end of June, up from 1,640,375 on December 30 last year, according to CDBL data.
A BO account is mandatory for trading shares on the stock market and applying for initial public offerings (IPOs). Investors open these accounts through depository participants, typically stockbrokers or merchant banks.
Market operators said the rise in new BO accounts is one of the clearest signs that confidence is gradually returning to the equity market following a prolonged downturn that kept many investors on the sidelines.
"It is a good sign for the country's stock market as new investors are entering the market," said Md Akramul Alam, head of research at Royal Capital, while commenting on the rise of new BO accounts.
He said both new and existing investors had gradually returned as the market showed signs of recovery and normalisation following the national election and the appointment of a new chairman at the Bangladesh Securities and Exchange Commission (BSEC).

The benchmark DSEX Index climbed nearly 939 points to 5,804 in nearly seven months of 2026 while the market capitalisation added Tk 230 billion to reach Tk 7.01 trillion during the period, buoyed by improved sentiment amid growing optimism over sweeping regulatory reforms.
Market analysts said the rebound marks a significant turnaround after years of weak market performance and reflects the gradual return of investor confidence as the newly elected government steps up efforts to restore discipline in the capital market and revive the broader economy.
Daily turnover has also improved compared with the levels seen during much of the previous year, indicating stronger market activity.
The recovery was driven by a combination of political and economic factors, including easing domestic uncertainty, stronger foreign exchange reserves, a more stable exchange rate, moderating inflation and renewed policy attention to the capital market.
Investor sentiment received another major boost following the appointment of renowned chartered accountant Masud Khan as chairman of the Bangladesh Securities and Exchange Commission (BSEC) in early June.
After assuming office, the new BSEC chairman pledged to restore investor confidence, attract quality companies to the stock market and transform Bangladesh from a retail-driven frontier market into a transparent, institution-led emerging market.
The BSEC chief also announced plans to conduct a comprehensive review of existing securities regulations, IPO approval procedures and reporting requirements to make the regulatory framework more efficient and business-friendly.
Mr Khan also noted that many large local corporations, multinational companies and state-owned enterprises remain outside the stock market despite being suitable for listing.
"The commission plans to engage with these companies and introduce a direct listing framework to bring quality issuers to the market," the BSEC chief said after taking charge in early June.
The new leadership has raised expectations of stronger regulation, greater transparency and long-awaited structural reforms, encouraging investors to increase their exposure to equities, said a leading merchant banker.
He remained optimistic about the market's outlook for the second half of 2026, expecting the ongoing economic recovery, improving macroeconomic indicators and continued regulatory reforms to provide further support to equities and inclusion of new investors.
However, they noted that new listings and a more accommodating market structure will be needed to give a stronger boost to both the capital market and the broader economy.
The merchant banker said the number of new BO accounts is expected to grow further once fresh listings start to the market.
The BSEC's new commission is working to streamline IPO regulations and introduce a direct listing framework to make the equity market more attractive for fundamentally strong and reputable companies.
"There has been no new listing in the past two years, once the new listing starts, opening of new BO accounts is expected to increase further," he said, adding that many investors open accounts only to apply for IPO shares. babulfexpress@gmail.com