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The Financial Express

BSEC seeks public opinion on issuing new TRECs

FE Report | Published: March 29, 2020 11:12:16 | Updated: March 31, 2020 10:39:23


BSEC seeks public opinion on issuing new TRECs

The securities regulator has sought public opinion on the draft rules formulated to issue new TREC (Trading Right Entitlement Certificate), to the firms willing to conduct trading operations in the country's capital market.

The regulator will receive public opinions on the draft rules titled Bangladesh Securities and Exchange Commission (Trading Right Entitlement Certificate) Rules, 2020 within a timeframe of three weeks started from March 26.

Mohammad Saifur Rahman, an executive director of the Bangladesh Securities and Exchange Commission (BSEC), said the regulator may revise any clause (s) of the draft rules after receiving public opinion.

"The rules will come into effect after publishing gazette notification on the final draft approved by the commission. The companies, including foreign ones, will be allowed to get TREC of the exchanges if they fulfil the conditions," Rahman said.

According to the draft rules, the persons, other than the existing shareholders of the exchanges, will be allowed to get the TREC if they are companies, or institutions approved by the statutory bodies or the commission.

The minimum paid-up capital of a company aspirant to get TREC must be Tk 30 million.

But the condition is that the permanent and audited net asset value of the firm must be above 75 per cent of its paid-up capital.

Apart from the stipulated paid-up capital, the companies always will have to keep Tk 20 million, the amount may be revised time to time by the regulator, as security money in the concerned exchange, the draft rules said.

And the firms willing to get the TREC must have qualified manpower and managements defined by the securities regulator.

The firms will not be allowed to get TREC if it or any of its directors are penalised or convicted as per the criminal laws.

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