BSEC approves 16 more TREC for DSE

The Bangladesh Securities and Exchange Commission (BSEC) on Monday approved 16 more new companies for trading right entitlement certificates of the country’s prime bourse.

The stock market regulator sent a letter to the Dhaka Stock Exchange (DSE) on the day, mentioning the names of the 16 companies. The DSE for the second time in its history has approved brokerage licence to any non-member firm.

According to the BSEC letter to the DSE, the 16 companies are: Amar Securities, Bang Ji Geo Textile, Meenhar Securities, Biplob Holdings, Associated Capital Securities, Be Rich, Columbia Share, Rahman Equity, MKM Securities, Smart Share, Benemoy Securities, Relief Exchange, Emperor Securities, NY Trading, B & BSS Trading, Bridge Stock & Brokerage Limited.

Earlier, the commission on May 19 approved 30 new brokerage houses 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.

Currently, there were 250 TREC holders on the Dhaka bourse. 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 have a minimum paid up capital of Tk 5 crore while the amount applicable to 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.