The Bangladesh Securities and Exchange Commission (BSEC) has released a draft regulation governing mergers, divisions, amalgamations, and acquisitions of listed companies. The draft, published on the BSEC website on Saturday, invites stakeholder feedback within two weeks. The regulator stated that the new framework aims to prevent past abuses in corporate restructuring that often benefited directors at the expense of general shareholders.

The draft rules prohibit backdoor listings or reverse takeovers and require at least 75 percent approval from general shareholders for any restructuring scheme. Independent valuers from BSEC’s approved panel must assess such schemes using at least two absolute and two relative valuation methods. The rules also set limits on growth projections and discount rates, require submission of audit reports, tax returns, and financial justification reports, and mandate disclosure of employee benefits and tax liabilities.

After BSEC and stock exchange review, shareholder consent and court approval will be required before final implementation. The regulation seeks to ensure transparency, accountability, and protection of investor interests in corporate restructuring.