BSEC Sets Tk10 Crore Net Worth Requirement for Mutual Fund Sponsors

Over the past seven years, 56 companies raised Tk5,178 crore through IPOs in Bangladesh, but 24 of them—collectively raising over Tk2,000 crore—have been downgraded to the Z and B categories due to poor financial performance.

The Dhaka Stock Exchange (DSE) saw a significant decline on Sunday, with the DSEX index falling nearly 30 points, or 0.56%, to 5,174, marking its lowest level since February 10. This drop was driven by investor unease following tensions within the Bangladesh Securities and Exchange Commission (BSEC) over the forced retirement of an executive director.

The Bangladesh Securities and Exchange Commission (BSEC) has halted the Tk 5 crore fundraising by Doer Services Ltd following media reports on problematic client agreements and profitability. The regulator will form a committee with the Dhaka Stock Exchange (DSE) to investigate the issues.

Trading in Treasury bonds on the Dhaka Stock Exchange (DSE) surged 55% year-on-year to Tk 1.31 billion last year, driven by higher interest rates and eased transaction processes through brokerage firms. Despite this growth, the market size has surpassed Tk 3 trillion, highlighting its potential.

In FY 2023-24, the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) faced operating losses due to reduced trading, fewer IPOs, and increased costs. The DSE's core revenue of Tk 125 crore fell short of expenses, causing a Tk 20 crore loss, while the CSE incurred a Tk 10 crore loss with Tk 31 crore in core revenue.

Bangladesh's stock market underperformed in 2024, with the DSEX index plunging 16.49% and market capitalization shrinking by over Tk1 lakh crore, as per LankaBangla Securities' Capital Market Review. This starkly contrasts with peer nations like Pakistan and Sri Lanka, which posted 72.49% and 48.80% gains, respectively.