The Bangladesh Securities and Exchange Commission (BSEC) has proposed raising the cap on using initial public offering (IPO) and rights offer (RPO) proceeds to repay existing loans from 30% to 50%. It would also make escrow accounts mandatory to ensure the money goes to its declared purposes.
Under the draft amendments to the Bangladesh Securities and Exchange Commission (Public Offer of Equity Securities) Rules, 2025, companies would have to undergo pre-IPO verification by a BSEC-listed auditor before applying. The draft also tightens disclosure requirements for share pricing. Stock exchanges would get a 20-day deadline to review IPO applications and inspect companies’ factories or business premises.
The draft was published on 18 October, and the commission has invited comments, suggestions and objections within two weeks. The proposed changes have not yet been finalised.
https://www.tbsnews.net/economy/stocks/bsec-proposes-50-ipo-debt-repayment-cap-mandatory-escrow-accounts-1576896