Dhaka: The Bangladesh Securities and Exchange Commission (BSEC) on Thursday reaffirmed that safeguarding investor interests will remain its foremost mandate as it works to energise the capital market through increased Initial Public Offerings (IPOs). Speaking at a discussion meeting titled “IPO Proceeds Utilization for Loan Repayment or Investments of Issuer” at the BSEC multipurpose hall in Agargaon, Commission Chairman Khondoker Rashed Maqsood said the regulator is committed to building a vibrant and sustainable capital market but not at the cost of investor protection.
According to United News of Bangladesh, the meeting focused on how IPO proceeds may be used for loan repayment and investments and drew senior representatives from across the capital market ecosystem. Maqsood emphasised the need for stronger coordination among market institutions and said work is underway to bring public interest companies under a proper governance framework and to list fundamentally sound companies on the exchange.
Business leaders and financial sector representatives at the meeting called on BSEC to adopt a more flexible stance on allowing IPO proceeds to retire debt. Syed Nasim Manzur, Managing Director of Apex Footwear and a member of the Private Sector Advisory Council, argued that most global markets impose no restrictions on using IPO funds for loan repayment. Tapan Chowdhury, Chairman of the Central Depository Bangladesh Limited (CDBL) and Managing Director of Square Group, urged caution, however. He stressed that the actual benefit to the company or project must be carefully assessed before permitting such use.
Abdul Hai Sarker, Chairman of the Bangladesh Association of Banks (BAB) and Chairman of Dhaka Bank PLC, underscored the broader economic argument, saying a robust capital market is essential for maintaining global competitiveness and ensuring sustainable growth. Mashrur Arefin, Chairman of the Association of Bankers Bangladesh (ABB) and Managing Director of City Bank PLC, said companies should have the option to restructure their capital by using IPO proceeds to repay productive or expansion-related loans.
Riyad Mahmud, President of the Bangladesh Association of Publicly Listed Companies (BAPLC), echoed the call for flexibility, noting that even well-run companies may carry rescheduled debt due to global crises. Dhaka Stock Exchange (DSE) Chairman Mominul Islam said companies should be allowed to repay loans using IPO proceeds where it genuinely benefits them, but stressed the need for rigorous verification beyond mere disclosure and compliance checks.
Kamran T Rahman, President of the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI), flagged a structural concern that long-term projects are being financed through short-term deposits. He called for policy alignment to channel long-term financing through the capital market instead. The meeting also covered developments in the bond market, long-term capital market financing, and corporate governance reforms.
BSEC Commissioners Md. Mohsin Chowdhury, Md. Ali Akbar, and Md. Saifuddin, were among those present.