The securities regulator has asked both the bourses to submit a detailed plan within 15 days regarding the issuance of new TREC (Trading Right Entitlement Certificate).
The Bangladesh Securities and Exchange Commission (BSEC) delivered its instruction on Thursday through a letter sent to the managing directors of both Dhaka Stock Exchange and Chittagong Stock Exchange.
The regulatory instruction came as part of the process of the demutualisation process of the stock exchanges. Both the bourses are supposed to issue new TREC on completion of five years after the demutualisation.
“We have received the BSEC’s letter and the preparation is going on to submit our plan to the securities regulator,” said Abdul Matin Patwary, the managing director (in-charge) at the Dhaka Stock Exchange (DSE).
Asked, the managing director of the Chittagong Stock Exchange (CSE) Mamun-Ur-Rashid said they would submit a plan regarding issuance of a certain number of new TRECs within the ongoing fiscal year.
“We will submit our plan subject to the BSEC after taking approval from our board of the directors. We will also publish advertisement in this regard,” said the CSE’s managing director.
Both the bourses completed its demutualisation process in November, 2013 and five years of completing demutualisation also ended in November 20, 2018.
In March, 2019 the securities regulator formulated rules for issuing new TREC by both the bourses.
The BSEC also took the opinion of both the bourses before finalising the rules required to issue new TREC.
Presently, there are 250 TREC holders in the DSE while 148 TREC holders are conducting trading operations in the port city bourse CSE.