Published: 11:03 PM, 09 September 2026
DBA pushes for share buyback, M&A rules to revitalise capital
The DSE Brokers Association of Bangladesh (DBA) has recommended incorporating necessary provisions on share buybacks and mergers and acquisitions (M&A) by listed companies into the proposed third amendment to the Companies Act, 1994, to make the country's capital market more dynamic, efficient and investment-friendly.
The recommendation was sent in writing to Commerce Ministry Secretary Md Ataur Rahman Khan, NDC, on Wednesday (Sept 9), signed by DBA President Saiful Islam. A copy was also sent to Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan for his kind information, according to a press release. In its recommendations, the DBA said listed companies should be given a clear legal avenue to buy back their own shares as part of efforts to make the capital market more vibrant and efficient.
To this end, the association proposed incorporating the necessary provisions into the proposed amendment to the Companies Act while empowering the BSEC to formulate, implement and enforce rules and regulations governing share buybacks, as well as oversee, monitor and ensure good governance in the process.
The DBA also recommended giving the BSEC the authority to formulate and implement necessary rules and regulations for mergers and acquisitions involving listed companies. Such a framework, it said, would help eliminate existing complexities and lengthy legal procedures associated with M&A transactions.
According to the DBA, as the statutory regulatory authority responsible for the capital market and listed companies, the BSEC should have the necessary powers to establish a clear and effective regulatory framework for critical issues such as share buybacks and mergers and acquisitions.
Such regulatory authority would facilitate faster decision-making, more effective oversight, greater transparency and stronger corporate governance, the association said.
The DBA believes that modern and effective rules governing these areas would make corporate restructuring and capital management easier and more efficient for listed companies. At the same time, such reforms would help inject greater dynamism into the capital market and better protect the interests of investors and other stakeholders.
The association expressed hope that the government would give due consideration to its recommendations and incorporate the necessary provisions into the third amendment to the Companies Act, 1994, in line with its objectives and plans for the capital market, market development and modernisation, and protection of investors' interests.
