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Brokerage houses can now open branches

  • Published at 12:32 am December 31st, 2020
stock market laptop

The regulator took the decision with the view to expanding the business of stockbrokers

After a pause of nine years, stockbrokers can now open new branches across the country.

After the stock market crash in 2010-11, the Bangladesh Securities and Exchange Commission (BSEC) had put a bar on the opening branches by brokerage houses outside of the capital.

Now, with the view to expanding the business of stockbrokers and also to make it easier for investors to get services, the BSEC has decided to lift the bar, its Spokesperson Md Rezaul Karim told Dhaka Tribune.

"The capital market has been expanding day by day. Therefore, we feel this was a necessity for our business expansion,” said Sharif Anwar Hossain, president of the DSE Brokers Association.

The move will promote the bourses and educate the people who lack knowledge of capital market investment, Hossain said.

Earlier in November, the BSEC had approved the "Digital Booth (Stockbroker/TREC holder) Rules, 2020", which allowed brokers to set up digital booths under the supervision of its respective head office or branch offices.

The booth can be opened at union centres at upazilas, business centres at district level and also commercial areas overseas.

The decision was taken to expand stockbrokers' businesses and make it easier for investors to avail stock-related services.

According to the recent DSE data, 250 members of the bourse operate 691 branch offices in 28 districts in the country. The number of branches in 2008 was 388.

Of the 691 branch offices, 398 branches are located in Dhaka, 73 in Chittagong, 39 in Sylhet, 15 in Narayanganj, 14 in Khulna, and nine each in Comilla, Rajshahi, and Rangpur. 

Among others, seven branch offices are in Moulvibazar, six each in Noakhali and Bogura, five each in Barishal, Feni, and Narsingdi, and four in Mymensingh.