Finmin outlines roadmap for vibrant capital market with T+0 settlement, digital IPOs
To strengthen accountability, the budget introduces a professional liability framework and mandatory liability insurance for auditors, valuers and issue managers to ensure accuracy in financial disclosures
Finance Minister Amir Khosru Mahmud Chowdhury has unveiled an ambitious roadmap to overhaul Bangladesh's capital market in the proposed 2026-27 national budget, pledging to remove "unnecessary complexities" in company listings and introduce municipal bonds to diversify financing tools.
Presenting the Tk9.38 lakh crore budget in Parliament today (11 June) – the first under the BNP-led government – he said restoring investor confidence and rebuilding a modern financial system were top priorities, arguing that the market had previously been "damaged by looting, mismanagement, and poor policy decisions," and pledged to build a sustainable, modern financial system.
Shift toward equity-based financing
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"We are transforming a debt-based investment structure into an equity-based system," the finance minister told Parliament, adding that the goal is to build an investment- and foreign direct investment-led economy.
To support this shift, the budget proposes simplifying capital-raising procedures by cutting regulatory costs and ambiguities.
It also plans to make the initial public offering (IPO) process fully digital, from application and verification to approval and fee submission through an integrated online platform.
The proposals further call for expanding participation from long-term institutional investors, including pension funds, insurance companies and asset management firms, to deepen market stability.
Faster settlement and global integration
In a major reform move, the government plans to gradually reduce the share settlement cycle from T+2 to T+0 (same-day settlement), allowing investors to complete transactions within a single day and aligning the market with advanced global practices.
For foreign investors, the budget proposes a one-day repatriation and reinvestment facility through Non-Resident Investors' Taka Accounts (NITA), while also exploring regional dual listings to enable Bangladeshi firms to access foreign capital markets.
Expanding the bond market
To reduce dependence on bank financing for long-term investment, the government plans to expand the corporate bond market and introduce municipal bonds to support local government and urban infrastructure development.
The use of Sukuk (Islamic bonds) and infrastructure funds will also be expanded for both public and private financing needs.
To strengthen accountability, the budget introduces a professional liability framework and mandatory liability insurance for auditors, valuers and issue managers to ensure accuracy in financial disclosures.
Market reaction
Market stakeholders welcomed the proposed reforms, describing them as a shift toward structural improvements.
Minhaz Mannan Emon, shareholder director of the Dhaka Stock Exchange, said the budget marks a departure from earlier approaches focused mainly on taxation.
"Unlike previous budgets, this one addresses fundamental structural constraints," he said, adding that simplifying and fully digitising the IPO process could help attract more large companies to the market.
Ershad Hossain, director of Putnam Capital Advisory Pte Ltd in Singapore, also praised the deregulatory approach, saying it could strengthen foreign investor confidence.
He noted that reducing barriers to IPO fund utilisation and appointing qualified professionals to regulatory bodies would be key to improving market efficiency and growth.
