The Dhaka Stock Exchange (DSE) has moved to cancel the Trading Right Entitlement Certificates (TREC) of Mahid Securities and Al Haramain Securities Ltd for violating securities rules.
In separate disclosures on its website today, the bourse said Al Haramain Securities breached the Bangladesh Securities and Exchange Commission (TREC) Rules, 2020 by keeping its net assets below 75 percent of its paid-up capital.
Under the rules, every primary shareholder of the stock exchange is entitled to own a TREC. But non-primary shareholders, like Al Haramain, must maintain net assets of at least 75 percent of their paid-up capital to retain TREC eligibility—a condition the firm failed to meet.
The DSE also cancelled the TREC issued to Mahid Securities Ltd for failing to begin operations within the stipulated timeframe.
After receiving a TREC, a firm must secure stock-dealer approval and start operations within six months of obtaining that approval. Mahid Securities did not commence operations within the deadline, the DSE disclosure said.
What Investors Need to Know
The DSE has advised all investors and clients of the two brokerage houses to review their accounts and complete any pending settlements.
Investors with unresolved issues related to fund or securities settlements have been asked to file written complaints, along with supporting documents, to the DSE's chief regulatory officer.
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