Home ›› 29 Aug 2021 ›› Stock
The Bangladesh Securities and Exchange Commission on Thursday approved nine more new companies for trading right entitlement certificates or TREC for the Dhaka Stock Exchange.
The stock market regulator sent a letter to the prime bourse on the day, mentioning the names of the nine companies.
Approved nine TREC are -- Assurant Securities & Management Limited, Matrix Securities, CAL Securities, SBI Securities Limited (Subsidiary of Sonar Bangla Insurance Co. Ltd.), Wings Fin Ltd., Fareast Shares and Securities, Trust Regional Equity Limited, Innova Securities Limited and DP 7 Limited.
The BSEC for the third time in its history has approved brokerage licence to any non-member firm for the Dhaka Stock Exchange (DSE).
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.
Meanwhile, the BSEC has asked the four other companies to submit the objective of the article of memorandum within October 14, this year.
The four companies are -- Gibson Securities, SQ Wire Cable Company, Fariha Knit Tex Limited, and CVC Finance Limited.
Earlier, the commission approved 46 new brokerage houses in two phases. Currently, there are 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 for the foreign companies is Tk 10 crore.
On the other hand, Joint venture companies are required to have paid up capital of Tk 8 crore to buy a TREC.
According to the rules, 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.
