# BSEC Approves Direct Listing Rules, Announces Plans for Financial Derivatives Trading *The Bangladesh Securities and Exchange Commission (BSEC) has approved draft rules for direct listing of securities and plans to introduce financial derivatives trading by January 2028.* September 1, 2026 ยท business The Bangladesh Securities and Exchange Commission (BSEC) has approved the draft of the Bangladesh Securities and Exchange Commission (Direct Listing of Securities by Stock Exchange) Rules, 2026. This move paves the way for companies to get listed on stock exchanges without going through an Initial Public Offering (IPO). The draft rules will be published for public opinion before final implementation. ## Direct Listing Mechanism Under the proposed rules, companies will be able to directly list their securities on stock exchanges by offloading shares held by existing shareholders, provided they meet the prescribed conditions. Eligible companies include fully or majority government-owned entities, those with significant government stakes, foreign-owned companies, and BTRC-approved telecom and ICT firms with at least Tk 300 crore in paid-up capital. Additionally, scheduled banks, financial institutions, and insurance companies with at least three years of operations, as well as companies with an annual turnover or total assets of at least Tk 500 crore, will be eligible for direct listing. ## Financial Derivatives Trading The BSEC has also approved a work plan submitted by the Dhaka Stock Exchange (DSE) for launching financial derivatives products. The plan includes regulatory initiatives, system development, infrastructure preparation, clearing and settlement arrangements, and risk-management measures. The BSEC will monitor the implementation of this plan regularly. Trading in financial derivatives is expected to begin with index futures, with formal trading anticipated to start in January 2028. The introduction of direct listing and financial derivatives trading is expected to bring significant changes to the Bangladeshi stock market. Direct listing will provide an alternative pathway for companies to raise capital without the complexities and costs associated with IPOs. Meanwhile, the introduction of financial derivatives will offer new investment opportunities and risk management tools for market participants. The BSEC's decisions reflect its commitment to modernizing the capital market and enhancing its competitiveness. These changes are likely to attract more companies to the stock market and provide investors with a broader range of investment options. ## Sources - BSS --- Source: https://pulsetoday.com.bd/en/business/bsec-approves-direct-listing-rules-plans-derivatives-trading