BSEC seeks details of 236 DSE TREC holders

The securities regulator wrote the prime bourse to provide information about the three-year activities of 236 trading right entitlement certificate (TREC) holders.

The information was sought to check if they are active or inactive, according to a letter recently sent to the Dhaka Stock Exchange.

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

The Bangladesh Securities and Exchange Commission (BSEC) received a handful of applications seeking the licences, sources said.

“Before approving the new ones, the commission wants to check the current status of old ones,” said an official.

A DSE director confirmed receiving the letter saying, "We’re working on it."

A BSEC Commissioner told Business Insider Bangladesh, "We’ve asked the DSE to provide the present status of the activities of 236 TREC holders as the commission wants to check if they are doing their jobs properly.”

 “This initiative has been taken to activate the inactive TREC holders."

The total number of TREC holders in DSE is 250. Of them, four TREC holders remained inactive while 10 are yet to start trading in the stock market after obtaining licences.

Of the remaining 236 TREC holders, 20 are playing an active role in the market while the rest of them are allegedly not playing their roles properly.