SECProposes to Transfer 35% Shares, List on Dhaka Stock Exchange with BSEC's Consent
Chittagong Stock Exchange's Listing Plan Rejected by BSEC
The Chittagong Stock Exchange's (CSE) plan to offload its remaining 35% blocked shares and list them on the Dhaka Stock Exchange (DSE) has been rejected by the Bangladesh Securities and Exchange Commission (BSEC). The rejection was due to the proposal being inconsistent with regulatory requirements and the Exchanges Demutualization Act, 2013, and citing deficiencies such as lack of operating profit, missing prospectus, and inadequate board resolutions in the application.
Specifically, the CSE's proposal involved selling 20% of the blocked shares through private placement to reputed local and foreign institutions and offering the remaining 15% to the general public via a special book-building process on the DSE. However, BSEC stated that private company shares (other than state-owned enterprises) cannot be directly listed on the stock exchange. The commission also noted legal inconsistencies and procedural issues with CSE’s submission, leading to the rejection of the listing plan.
Despite the setback, the CSE has not given up on the plan. The Managing Director of CSE, M Shaifur Rahman Mazumdar, stated that the board has decided to move forward with the listing process. The Demutualisation Act mandates that a stock exchange must be listed on its own board or the board of another exchange to be listed. Currently, there are no self-listing regulations for stock exchanges.
If approved by the BSEC, the share offloading and listing plan could open the door to greater foreign participation and help revive CSE's position in Bangladesh's capital market. In the fiscal year 2023-2024, a total of 189.17 crore shares were traded on the CSE, a 15.18% increase compared to the previous year. The total turnover value for the same period was Tk7,478 crore, a 23.28% increase compared to the previous year.
It is worth noting that the CSE's decision does not involve any existing shareholders or connected parties regarding the 20% shares offered to foreign or local institutions. Under the demutualisation framework, 40% of CSE shares are held by the initial shareholders. The remaining 15% will be offered to the general public through a specially designed book-building process once regulatory consent is received.
The CSE currently has a total of 623 listed securities, and under the plan, 20% of the shares will be offered to four or five reputed foreign or local institutions. The share price will be determined by the CSE board and subject to BSEC approval. The CSE will also be listed on the Dhaka Stock Exchange (DSE) as part of the initiative.
[1] The Financial Express, "CSE's plan to list shares on DSE rejected by BSEC", 1 September 2025. [2] The Daily Star, "BSEC rejects CSE's plan to list shares on DSE", 2 September 2025. [3] The Business Standard, "CSE's plan to list shares on DSE rejected by BSEC", 3 September 2025.
Investing in the Chittagong Stock Exchange (CSE) may face a delay due to the rejection of its listing plan on the Dhaka Stock Exchange (DSE). This rejection is a result of the proposal being inconsistent with regulatory requirements and the Exchanges Demutualization Act, 2013.
However, despite the rejection, the CSE intends to move forward with the listing process, aiming to attract foreign participation and revive its position in Bangladesh's capital market.
