POBNEWS24, Dhaka May 11, 2025 : Bangladesh interim government chief adviser Professor Muhammad Yunus has asked the Bangladesh Securities and Exchange Commission to undertake urgent reforms in the capital market, bringing foreign experts to reform the market and bring stability within the next three months.
The directive came during a high-level meeting held at the Chief Adviser’s Office on Sunday where Yunus met with BSEC chairman Khondoker Rashed Maqsood in the wake of a prolonged slump in the stock market since Maqsood assumed office, according to CA’s press wing and BSEC officials.
The chief adviser issued five specific directives to the market regulator, underscoring the gravity of the situation and the need for swift, structural intervention, they said.
Yunus tasked the BSEC with immediately initiating a framework to bring in foreign consultants with proven expertise in capital market reform and regulation.
In an effort to deepen the market and attract quality listings, the chief adviser instructed the BSEC to begin the process of listing profitable state-owned enterprises (SOEs) as well as companies with partial government ownership—such as Unilever Bangladesh—on the stock exchange.
He noted that the government should consider reducing its stake in these companies, if necessary, to facilitate public listing.
Additionally, Yunus called on the commission to identify large, well-performing private sector companies operating in Bangladesh that have so far refrained from going public.
The BSEC has been asked to engage with these firms, assess their concerns, and offer tailored incentives—fiscal, regulatory, or otherwise—to bring them into the stock market.
The chief adviser also raised concerns over companies with large loan portfolios that continue to rely heavily on bank financing instead of raising capital from the equity market.
He urged the BSEC to create mechanisms that would encourage such companies to shift towards market-based financing.
Finally, in a firm tone, Yunus instructed the BSEC chairman to take uncompromising action against market manipulators and financial wrongdoers—regardless of their political affiliations or connections.
No pressure from any corner should deter the commission from safeguarding market integrity, he reportedly said.
The meeting comes against the backdrop of mounting criticism over the BSEC’s performance under Maqsood’s leadership.
The stock market has been on a steady decline for months, with the key index losing investor confidence amid growing concerns over regulatory inaction.
In recent days, small investors staged demonstrations at Motijheel, demanding the resignation of the BSEC chairman.
Protesters accused the commission of failing to protect retail investors.
There existed increasing dissatisfaction among investors, brokers, and market analysts, who argue that the BSEC lacks both direction and the will to enforce compliance.
