BSEC to allow foreign outlets for brokerage firms
The Bangladesh Securities and Exchange Commission (BSEC) will allow the brokerage firms to open foreign outlets for non-resident Bangladeshi investors.
BSEC Chairman Professor Shibli Rubayat-ul-Islam recently gave informal directions to the managing directors of both stock exchanges'.
The stock exchanges will take necessary steps in this regard.
According to the direction, interested brokerage firms will be able to open foreign outlets for non-resident Bangladeshi investors in several countries.
The investors will be able to complete money settlement, cash deposit and withdrawal by using the outlets. Share trading-related activities will be completed through the outlets.
When investors deposit any currency from abroad, that currency will be converted into taka in their Beneficiary Owners Account.
On the other hand, withdrawn money will be converted to the currency of the place they will be withdrawing the money from.
The commission will take this decision to increase non-residential investment and easy trading, sources at the regulator told The Business Standard.
If this decision is made, both stock exchanges' trade volume will increase by 20 percent, the sources said.
Lots of non-resident Bangladeshis do not invest in the country's stock market due to the hassle of money settlement. With foreign outlets, they will be interested to invest in the capital market.
According to Central Depository Bangladesh Limited (CDBL), there are 1.26 lakh non-resident Bangladeshi in our stock market who opened BO accounts for investment out of a total of 23 lakh investors.