Foreign companies and the joint venture companies with foreign investment are exempted by Bangladesh Securities Exchange Commission from the requirement of converting into a public limited company when the paid-up capital exceeds BDT 40 crore and issuing initial public offering when the paid-up capital reaches BDT 50 crore.
Through a notification on June 11, 2015, Bangladesh Securities Exchange Commission informed this decision.
Previously, pursuant to the notification no. SEC/CMRRCD/2006-159/36/Admin/ 03-44 dated May 5, 2010 of SEC, a private limited company (including companies with foreign shareholding) was required to convert itself into a public limited company within six months after its existing paid-up capital exceeded BDT 40 crore.
And when a company’s paid up capital exceeds BDT 50 crore, the company is required to apply to the SEC for an initial public offering within one year from the date of its paid up capital exceeding BDT 50 crore.
The requirements of converting into a public limited company and going public is still applicable for companies with 100% local shareholdings.