The Bangladesh Securities and Exchange Commission (BSEC) has rejected the license renewal application of Tradecap Stock Brokerage Limited, a member firm of the Dhaka Stock Exchange (DSE), the country’s main stock market. The decision came nine months after the application was submitted, as the regulator found that the company’s ownership transfer had not been completed properly.

As a result of this decision, investors who used to trade through this brokerage house previously known as Anwar Khan Modern Securities Limited will now have to transfer their shares to another brokerage house through a link account to continue trading.

Relevant officials at BSEC have confirmed the license cancellation. They stated, “Every stock brokerage house must renew its trade license annually. The Commission found that the ownership change of Tradecap was not carried out properly.”

However, Tradecap officials have said they have been working for the past nine months to meet the regulatory requirements for renewing their broker-dealer license. They have not yet been officially notified about the cancellation.

Earlier last month, DSE suspended Tradecap’s trading operations after its license expired on November 23 of this year. Before the license expired and trading was halted, DSE sought guidance from BSEC regarding Tradecap, but the regulator remained silent.

After the suspension, the brokerage house went to court. On December 1, the Supreme Court instructed DSE to immediately allow the firm to resume full trading and depository operations until the regulator made a decision on license renewal or reissuance. Following this, the regulator has now decided to reject the renewal application.

According to DSE data, in August last year, the ownership of Anwar Khan Modern Securities was transferred to five new shareholders. Later, one shareholder withdrew after failing to obtain clearance from the Credit Information Bureau. In November 2024, the firm received approval for license renewal for the previous one-year period.