The Bangladesh Securities and Exchange Commission is going to introduce direct listing option as an alternative to IPOs, allowing established companies of the country to be listed in the capital market through offloading shares held by company directors.
Direct listing offers an alternative avenue for established companies—which do not need to raise new capital for business expansion or operations but wish to list on the stock market—to be listed through the offloading of shares by existing shareholders.
The BSEC announced the rule in a press release issued on Wednesday.
The commission has drafted the ‘Bangladesh Securities and Exchange Commission (Direct Listing of Securities on Stock Exchanges) Rules, 2026’ and published it for public comments. The rules are expected to be finalized and gazetted soon.
Under the proposed system, companies will not raise fresh capital by issuing new shares. Instead, existing shareholders will offload their shares to facilitate the listing, offering an alternative route for established companies that do not need additional funds for operations or expansion.
The BSEC notes that this system will create opportunities to increase the participation of new and capable companies in the stock market.
Simultaneously, it will provide existing shareholders with the opportunity to offload their shares, potentially enhancing the depth and scope of the stock market.
According to the new rule, specific eligibility criteria must be met for direct listing. Only companies that qualify under the proposed rules will be able to apply for listing through this system.
However, the IPO route also remains available for companies seeking to raise new capital. Companies currently interested in raising capital from the stock market via an IPO can apply in accordance with the existing “Bangladesh Securities and Exchange Commission (Public Issue of Equity Securities) Rules, 2025.”
