BSEC Chief Vows Sweeping Reforms to Revitalize Capital Market

The newly appointed Chairman of the Bangladesh Securities and Exchange Commission (BSEC), Masud Khan, has pledged a comprehensive overhaul of the country’s capital market to restore investor confidence and eliminate bureaucratic hurdles. Khan, who took office on June 4, 2026, emphasized that he has a mandate for absolute independence and will resign rather than yield to political interference.

Simplifying Regulations A primary goal is cutting the "red tape" currently stalling market growth. Khan described the current IPO process as "cumbersome," often requiring over a year and piles of paperwork. He plans to simplify these rules, alongside reforms for mutual funds and margin loans, to prioritize practical solutions over theoretical ones.

Attracting Corporate Giants To deepen the market, BSEC will actively court large local and multinational firms, such as Unilever Bangladesh and bKash. Khan aims to act as a "salesman," offering incentives for these entities to list through simplified direct listing regulations.

Fighting Scams and Manipulation Addressing market integrity, Khan is pushing for a special High Court bench dedicated to capital market cases to prevent fraudsters from using lengthy legal stays to avoid enforcement. Furthermore, legal changes are underway to allow BSEC to file cases directly with the special tribunal.

Deregulation and Technology In a significant shift, BSEC is returning authority to the stock exchanges, allowing them to inspect listed firms without prior regulatory permission. To curb future manipulation, Khan announced that AI-driven surveillance will be introduced next year. Additionally, the Dhaka Stock Exchange is preparing to delist "junk stocks" that create artificial market volatility.