B Mirror Report : The Dhaka Stock Exchange (DSE) has decided to cancel the Trading Right Entitlement Certificate (TREC) of SQ Brokerage House Limited, a member of the stock market. The firm’s TREC number 308 has been revoked due to violations of regulations set by the Bangladesh Securities and Exchange Commission (BSEC).

The information was confirmed by sources at the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE). According to the DSE, the TREC issued in the name of SQ Brokerage House Limited has been cancelled under Rule 7(3) of the Bangladesh Securities and Exchange Commission (Trading Right Entitlement Certificate) Regulations, 2020. The primary reason for this decision is the firm’s violation of Rule 7(1) of the same regulations.

DSE sources said that although SQ Brokerage House Limited obtained registration certificates from the BSEC as a stock dealer and stock broker, it failed to commence business operations within the stipulated time. Under the regulations, if an institution does not start operations within the prescribed timeframe, its trading right may be cancelled. In line with this provision, the DSE implemented the decision.

Market participants believe that failure to start operations within the specified time after the issuance of a TREC can pose risks to the capital market. The presence of inactive and non-operational brokerage firms may negatively affect investor confidence. Timely action against such institutions helps maintain market discipline and strengthens investor protection.

They further stated that this decision by the DSE reflects its firm stance on enforcing rules and discipline in the capital market. It also sends a clear message to new brokerage houses that obtaining registration alone is not sufficient—actual business operations must begin within the prescribed timeframe.