Govt lifts 16-year ban on direct listing

The government has withdrawn a 16-year-old restriction on direct listing, allowing reputable state-owned, private and multinational companies to list their existing shares on the country’s stock exchanges without having to raise fresh capital through an initial public offering (IPO).

The Financial Institutions Division (FID) of the Ministry of Finance issued an order on Monday withdrawing the restriction imposed on February 1, 2010.

The move followed recommendations from the Bangladesh Securities and Exchange Commission (BSEC) as part of efforts to broaden the supply of quality securities and deepen the country’s capital market.

Md. Abul Kalam, executive director and spokesperson of the BSEC, said the decision would create an opportunity for well-established companies that do not currently need fresh funds but are interested in becoming publicly listed.

“There are many good multinational, state-owned and private companies operating in Bangladesh that do not immediately need to raise capital from the public. Previously, they had no practical route to enter the capital market through direct listing,” he said.

He said lifting the restriction would allow such companies to bring their existing equity to the stock market, subject to compliance with the applicable rules.

However, the decision will not immediately result in companies being listed under the new mechanism. 

The BSEC will first finalise and update the Direct Listing Rules before the facility becomes fully operational.

The government had imposed the restriction in 2010 amid concerns over market stability following the stock market boom and subsequent crash.

According to Kalam, restoring the direct listing mechanism is important for increasing the number of quality companies in the market and diversifying the supply of securities.

The move is part of broader efforts to deepen the capital market and attract fundamentally strong companies that may not have an immediate requirement for public financing.

The lifting of the direct-listing restriction is expected to provide an additional route for established companies to enter the capital market while the BSEC works on a revised regulatory framework governing the process.

Earlier on September 1, The BSEC moved to introduce a separate regulatory framework for direct listing, allowing eligible large and established companies to enter the stock market without issuing new shares through an initial public offering (IPO).

The regulator approved in principle the draft Bangladesh Securities and Exchange Commission (Direct Listing of Securities by Stock Exchange) Rules, 2026 at its 109th commission meeting.