The Dhaka Stock Exchange has found 51 out of 66 applicants eligible for the bourse’s trading right entitlement certificate (TREC) and has sent their names to the Bangladesh Securities and Exchange Commission.
The DSE narrowed down the names of 51 companies eligible for TREC issued by the bourse at a board meeting held on April 20, DSE officials said.
The remaining 15 applications were binned due to noncompliance of securities rules and failure to fulfil the requirements as per advertisement, they said.
No foreign company applied for the brokerage licence while only one joint venture company, Japan Solartech (Bangladesh), applied for TREC. However, Japan Solartech was disqualified for non-compliance of rules.
The DSE may issue 15 TRECs from the list of eligible companies, the officials said.
Earlier on February 2, the country’s prime bourse invited applications from eligible firms to submit applications by March 28 to issue TREC.
A brokerage licence is called TREC which is a certificate issued by a stock exchange for execution of trading of listed securities as a broker or dealer as per securities laws.
Regarding the TREC issuance, the bourse will prefer companies which will have their own order management systems (OMS) at the time of starting their trading activities as it will minimise the pressure on the DSE’s present OMS, DSE officials said.
The 51 eligible companies are Kabir Securities, Amar Securities, Monarch Holdings, Sohel Securities, Bang Jin (BJ) Geo Textile, RAK Capital, Wings Fin, Meenhar Securities, Biplob Holdings, Jamuna Bank Securities, Associated Capital Securities, Snigdha Equities, Be Rich, International Securities Company, South Asia Securities, Tristar Securities, 3i Securities, Far East Shares and Securities, Columbia Shares and Securities, Sonali Securities, Rahman Equity Management, KDS Shares and Securities, Al Haramain Securities and Mir Securities, Trust Regional Equity, NC Securities, TK Shares and Securities, MKM Securities, NRB Bank Securities, SBAC Bank Investment, Amaya Securities, Prudential Capital, Takaful Islam’ Securities, HSB Securities, Smart Share and Securities, Innova Securities, BNB Securities, Agrani Insurance Securities, Mahid Securities, Baraka Securities, Benemoy Securities, Relief Exchange Limited, ANC Securities, SFIL Securities, Tasia Securities, Dynasty Securities,
Emperor Securities and Wealth Management, Mirpur Securities, Celestial Securities, Trade X Securities and DP7 Limited.
Currently, there are 236 active TREC holders on the DSE and many of them are struggling to continue running their businesses.
As per the BSEC TREC rules, any local and foreign company can buy a TREC for a registration fee of Tk 5 lakh. The application fee for the licence is Tk 1 lakh.
The local companies must also have a minimum paid up capital of Tk 5 crore while the amount applicable for the foreign companies is Tk 10 crore. Joint venture companies are required to have paid up capital of Tk 8 crore to buy a TREC.
The local companies have to keep Tk 3 crore, foreign companies Tk 5 crore and joint venture companies Tk 4 crore as security money with the stock exchanges, the rules said.
Apart from Japan Solartech, the other 14 companies which have been disqualified are Assurant Securities and Management, Bridge Stock and Brokerage, TA Merchandising, Fariha Knit Tex, Matrix Securities, SME Informatics, Bangladesh SME Corporation, B and BSS Trade International, Basic Bank Securities, Gibson Securities, CVC Finance, N Y Trading, SQ Wire and Cable Co and Islamic Finance Investment.
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