The Dhaka Stock Exchange (DSE) wants to sell Trading Right Entitlement Certificate (Trek) for Tk 21 million to buy and sell shares and units. In addition, to take the trek, you have to have a paid up capital of at least Tk 10 crore and a deposit of Tk 3 crore on the stock exchange.
The decision was taken unanimously at the DSE board meeting on Thursday (July 2). The DSE will send the proposal in the form of a proposal by July 15 in the light of the directives of the regulatory body Bangladesh Securities and Exchange Commission (BSEC).
Earlier on March 25, the BSEC had released the draft rules regarding the trek with the consent of the DSE. A registration fee of Tk 5 lakh and an application fee of Tk 1 lakh were fixed for the trek. Besides, paid up capital of at least Tk 3 crore and security of Tk 2 crore were mentioned.
Although the draft was published with the opinion of DSE, 3 shareholders of the stock exchange later opposed it. The DSE Brokers Association of Bangladesh (DBA) also issued a legal notice to the stock exchange due to DSE’s consent.
At that time, the biggest question raised about the trek issue was the determination of fees. It was questioned that the application fee of Tk 1 lakh and the registration fee of Tk 5 lakh were much less. According to them, the last time a DSE membership was sold in 2013 was over Tk 32 crore. In addition, the price of a brokerage house is 15 crore as the sale price of 25 per cent shares to strategic investors. Trek will be issued there for Tk 6 lakh. How is this possible? Then where will the value of the current membership come down.
With the DSE director, some of the former chairman of the BSEC. M talked to Khairul Hossain and demanded not to formulate the rules at that moment. In the light of that demand and due to the holiday announced by the government, the trek rules could not be published in the draft gazette and the time for public opinion poll had passed. The previous commission decided to fix a new deadline at the 625th regular commission meeting on 29 April. The DBA thanked the commission headed by Khairul Hossain for the decision. Besides, DSE directors Minhaj Mannan Emon, Shakil Rizvi and Mohammad Shahjahan thanked him.
Demutualization Act states that after 5 years have elapsed from the date of demutualization, the track can be issued in favor of the applicant in the manner prescribed by the stock exchange. But almost six and a half years have passed since the DSE demutualized on November 21, 2013, but no steps have been taken to issue the track from the stock exchange. However, the BSEC, with the consent of the DSE board, released the draft rules for public opinion polls with a view to issuing the trek.
Note that companies, statutory bodies or any organization approved by the commission can buy the track of the stock exchange. This trek will be available for customers to buy and sell shares. However, the owner of this track will not be a shareholder of the stock exchange. You will only get the opportunity to buy and sell shares and units. If an organization gets a track, it cannot be handed over