BSEC Mandates 35% Free Float Shares for SME Relisting

Industry: Stock Market

The Bangladesh Securities and Exchange Commission (BSEC) has mandated that over-the-counter (OTC) firms seeking to relist on the SME platform must maintain a minimum of 35% free-float shares through a Qualified Investors Offer (QIO). This requirement ensures that a significant portion of the company’s shares, previously held by insiders and major shareholders, are available for public trading. Companies failing to meet this requirement must raise capital by issuing new shares through the QIO. The move aims to enhance market liquidity and broaden public participation on the SME platform. BSEC’s directive, based on stock exchange recommendations, also emphasizes compliance with securities laws in transferring ownership and capital raising activities. The commission seeks to strengthen SME market participation, which currently hosts 20 companies, facilitating trading for eligible investors with at least Tk30 lakh investment.

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