DSE’s new TREC holders want equal facility like old ones

Although the Dhaka bourse’s newly issued trading right entitlement certificate (TREC) holders have yet to fully commence operations, they have demanded the same opportunities with regard to the trading workstations (TWS) issuance what the old TREC holders currently have.

A brokerage license 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.

Earlier, the Bangladesh Securities and Exchange Commission (BSEC) approved 58 new companies for the TREC of the Dhaka Stock Exchange (DSE).

In search for additional facilities, new TREC holders on Monday met with DSE Chairman Dr Hafiz Md Hasan Babu. During the meeting, they demanded that the new TREC holders be charged Tk 10,000 per month for a single trading workstation (TWS).

As per the existing or old TREC policy, TWS of the DSE are: from one to 10 TWS – Tk 5,000; 11 to 20 TWS – Tk 10,000; 21 to 25 TWS – Tk 25,000; and 26 TWS or above – Tk 30,000.

Meeting sources said new TREC holders do not have any representation on the board of the stock exchange, which is causing severe impediments to the business prospects of them (new TRECs).

They stated that all the above-mentioned charges are to be paid only once. How can such discrimination be made between the new and old TRECs in the same field of business? Is it because they don’t have any voice on the board of directors? Is the management of the regulatory bodies too subservient to the member directors?

The anomalies on the TWS issuance need to be re-addressed, and there should be the same rule for all TREC holders for the greater interest of the capital market, new TREC holders demanded.

Talking to this issue an old TREC holder, however, told The Business Post, the newly minted TREC holders, having no financial strength, would certainly focus on short-term benefits and consequently worsen the prospects of the country’s capital market, which is already in a fragile condition.

Talking to The Business Post, DSE Chairman Dr Hasan Babu said, “New TREC holders came to us with their demands. We have heard them. We will discuss the issue at our board meeting.”

From May 2021, the stock market regulator BSEC approved 58 new companies by three phases for the TREC of the DSE.

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

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

The list also include 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.

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