Three more TRECs allowed to operate on DSE

The Bangladesh Securities and Exchange Commission (BSEC) has approved three more new companies for trading right entitlement certificates, or TREC, of the Dhaka Stock Exchange (DSE).

The new TREC holders are Fariha Knit Tex Limited, SQ Wire Cable Company, and Gibson Securities Limited.

With the approval, the total number of new TREC holders stood at 58, according to a letter sent by the BSEC to the DSE on December 22.

A brokerage licence is called a TREC which is a certificate issued by a stock exchange for the execution of trading of listed securities as a broker or dealer as per securities laws.

BSEC Chairman Shibli Rubayat-Ul-Islam said it will significantly strengthen our stock market. He urged the new TREC holders to respect the investors and remain cautious about protecting their savings.

The other new DSE TREC holders are Kabir Securities, Monarch Holdings, Sohel Securities, RAK Capital, Jamuna Bank Securities, Snigdha Equities, International Securities Company, South Asia Securities, Tristar Securities, 3i Securities, Sonali Securities, KDS Shares and Securities, Al Haramain Securities, Mir Securities, TK Shares and Securities, NRB Bank Securities, SBAC Bank Investment, Amaya Securities, Prudential Capital, Takaful Islam’ Securities, BNB Securities, Agrani Insurance Securities, Mahid Securities, Baraka Securities, ANC Securities, SFIL Securities, Tasia Securities, Dynasty Securities, Celestial Securities, Trade X Securities, 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, Assurance Securities and Management Limited, CAL Securities Limited, SBI Securities Limited, Wings Fin Limited, Fareast Shares and Securities Limited, Trust Regional Equity Limited, Innova Securities Limited, Bridge Stock & Brokerage, Matrix Securities, and DP 7 Limited.

However, the approval will be canceled if the newly approved TREC holders fail to operate accordingly.  

Currently, some 250 TREC holders are in operation at the prime bourse.

Earlier, the BSEC okayed the entry of 23 new share trading companies to the port city bourse, the Chittagong Stock Exchange (CSE).

The new CSE’s TREC holders are Bank Asia Securities, MTB Securities, Padma Bank Securities, NRBC Bank Securities, NLI Securities, Beximco Securities, Shah Mohammad Sagir & Co., Hazrat Amanat Shah Securities, Dayton Holdings, Merchant Securities, SBAC Bank Investment, SFIL Securities, Bridge Stock & Brokerage, Columbia Shares & Securities, Biplob Holdings, Rahman Equity Management, Benemoy Securities, Monarch Holdings, Dynasty Securities, ANC Securities, B & Bss Trade International, Matrix Securities, and DP7 Limited.

Currently, there are a total of 148 TREC holders on the CSE. Among them, 120 TREC holders have both broker and dealer license, 22 have only broker license and 3 have only dealer licenses.

As per the BSEC rules, any local or foreign company can buy a TREC with a registration fee of Tk 5 lakh, while the application fee is Tk 1 lakh.

To avail a TREC, local companies must have a minimum paid-up capital of Tk 5 crore, while the amount is Tk 10 crore for foreign companies.

The joint venture companies require a paid-up capital of Tk 8 crore to buy a TREC.