BSEC introduces single-window IPO review system

Résumé détaillé

The Bangladesh Securities and Exchange Commission (BSEC) has approved a single-window initial public offering (IPO) review system to make the application process more efficient,…

The Bangladesh Securities and Exchange Commission (BSEC) has approved a single-window initial public offering (IPO) review system to make the application process more efficient, integrated and time-saving.

Under the system, companies seeking to go public will submit their IPO proposals through the stock exchanges only. The exchanges will then forward their observations and recommendations to the commission through a unified channel.

If the BSEC has any observations during the stock exchanges’ review period, it will communicate them to the exchanges, which will incorporate them into their own observations.

The stock market regulator took the decision at a commission meeting held at its office in the capital, chaired by BSEC Chairman Masud Khan.

The BSEC also decided to extend the deadline for stockbrokers and merchant bankers to adjust their negative equity and unrealised losses until 2030.

Negative equity in the stock market, particularly in relation to margin loans, occurs when the market value of an investor’s shares purchased with borrowed funds falls below the outstanding loan amount owed to a brokerage house or merchant bank.

Under the decision, stockbrokers and merchant bankers can adjust their negative equity and unrealised losses progressively through 2030. Based on their negative equity positions as of September 30, 2026, institutions must maintain a minimum provision of 25 percent annually, starting from 2027.

However, any new negative equity created during 2026 must be fully provisioned within the same year. If further negative equity arises in subsequent years, provisions must be made in the respective years.

Beneficial owner (BO) accounts with negative equity can rebalance their portfolios by selling existing shares and using the proceeds to buy new ‘A’ category shares. However, they will not be allowed to take out new margin loans. Block market transactions will also be prohibited for these accounts when selling shares.

Début de l'article, extrait de The Daily Star. Pour lire la suite, ouvrez l'article chez le média.