The securities regulator is likely to extend timeframe of receiving public opinion on draft rules formulated to issue new TREC (Trading Right Entitlement Certificate).
"The decision of the commission is required here to extend the timeframe to submit public opinion. I think the BSEC may consider the issue of extending timeframe considering the ongoing situation," said Mohammad Saifur Rahman, an executive director of Bangladesh Securities and Exchange Commission (BSEC).
The draft rules titled Bangladesh Securities and Exchange Commission (Trading Right Entitlement Certificate) Rules, 2020 was published in newspapers on March 26 saying that public opinion will be received till April 15.
The activities of the securities regulator, both the bourses and other market operators came to a halt since March 29 and the vacation will be continued till April 11 because of public holidays announced by the government to contain spread of the COVID-19.
Under such a situation, the bourses said the timeframe of submitting public opinion should be extended considering overall situation.
Kazi Sanaul Hoq, managing director at Dhaka Stock Exchange (DSE), said the bourses and market operators now are not able to work due to public holidays extended till April 11.
"I think the securities regulator should give us more time to submit our opinion extending the existing timeframe," Mr. Hoq said.
The BSEC has sought public opinion on the draft rules formulated to issue new TREC to the firms willing to conduct trading operations in the country's capital market.
The securities regulator will finalise the draft rules on receipt of public opinion. After approving the final draft, gazette notification will be published to enact the rules.
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 concern 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.
The draft rules also said the TREC certificates will not be transferable.
Presently, there are 250 TREC holders in the DSE while 148 TREC holders are conducting trading operations in the Chittagong Stock Exchange (CSE).
© 2020 - All Rights with The Financial Express