The company will receive the certificate to start share business as a member of the Dhaka Stock Exchange (DSE)
World's top all-rounder and cricketer Shakib Al Hasan is now officially in the stock exchange.
His company, Monarch Holdings, has already got approval from the stock market regulator to have a trading right entitlement certificate (TREC), a kind of licence to run a brokerage house.
Shakib is the chairman of Monarch Holdings, according to the company's website.
The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday (May 19) approved 30 new brokerage houses TREC, including Monarch Holdings, owned by Shakib.
The company will receive the certificate to start share business as a member of the Dhaka Stock Exchange (DSE), the country’s main stock exchange.
However, the BSEC in the letter said that the commission initially approved 30 companies from 66 applicants.
Currently, there are 236 TREC holders operating on the DSE and many of them are struggling to continue running their business.
A brokerage licence is called TRECm 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.
According to the BSEC letter to the DSE, the 30 companies 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 and Trade X Securities.
It also said that the applications of the other companies required further assessment. The BSEC would make decisions regarding the other applicants and inform the bourse soon.
As per the BSEC TREC rules, any local and foreign company can buy a TREC for a registration fee of Tk5 lakh. The application fee for the licence is Tk1 lakh.
The local companies must also have a minimum paid up capital of Tk5 crore while the amount applicable to the foreign companies is Tk10 crore.
Joint venture companies are required to have paid up capital of Tk8 crore to buy a TREC.
The local companies have to keep Tk3 crore, foreign companies Tk5 crore and joint venture companies Tk4 crore as security money with the stock exchanges, the rules said.