DHAKA, April 23, 2026 (BSS) – The Bangladesh Securities and Exchange Commission (BSEC) today held a high-level strategic dialogue at its multipurpose hall in the city to address the utilization of Initial Public Offering (IPO) proceeds for loan repayment and issuer investments.  The meeting, chaired by BSEC Chairman Khondoker Rashed Maqsood, brought together commission members and top representatives from key capital market stakeholders to discuss building a more vibrant and dynamic market environment, said a press release. Stakeholders at the meeting urged the commission to adopt a more flexible stance regarding the use of IPO proceeds for debt repayment, including the repayment of regularized rescheduled loans.  Syed Nasim Manzur, Managing Director of Apex Footwear, pointed out that unlike the current restrictions in Bangladesh, many neighboring countries and global markets do not impose such strict limitations on utilizing IPO funds for debt servicing.  He suggested that aligning with global standards could enhance the competitiveness and appeal of the local market. Khondoker Rashed Maqsood emphasized that while the commission is working to encourage new listings and sustainable development, its primary mandate remains protecting investor interests.  He assured attendees that the BSEC would evaluate all proposals from stakeholders while ensuring that any policy changes prioritize market integrity and investor safety.  He also highlighted ongoing efforts to bring public interest companies under a governance framework and attract fundamentally strong companies to the exchange. Tapan Chowdhury, Chairman of CDBL and Managing Director of Square Group, advised that the focus should be on whether the intended use of IPO funds is truly beneficial and profitable for the company or project.  He cautioned against allowing funds to be used for ambitious projects of reputable groups solely based on their corporate name without rigorous justification. Adding to this, Mashrur Arefin, Chairman of the Association of Bankers, Bangladesh (ABB), argued for capital restructuring opportunities.  He proposed that IPO proceeds should be allowed to repay loans taken for production or expansion purposes.  He further suggested that, given the current economic climate, loans rescheduled up to two times could be considered for repayment through IPO funds, provided specific control mechanisms are maintained. Kamran Tanvirur Rahman, President of MCCI, noted that the country currently relies heavily on short-term deposits for long-term financing—a practice he believes should be discouraged.  He stressed the need for policy consistency to ensure the capital market becomes the primary source for long-term financing. The session concluded with the BSEC reaffirming its commitment to enhancing coordination among market institutions to ensure a sustainable and transparent governance framework for all listed entities. Participants included representatives from the Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), Bangladesh Association of Banks (BAB), and the Bangladesh Association of Publicly Listed Companies (BAPLC), among others.