Stockbrokers allowed to set up digital booths to expand business
The regulator said the move will help to increase the capacity of the market intermediaries and create investment opportunities for all resident and non-resident investors in the country.
From now on, brokerage firms will be able to set up digital booths in upazila and district levels across the country and abroad to expand their business and ease services for capital market investors.
The firms will also be able to achieve efficiency in their business.
The Bangladesh Securities and Exchange Commission (BSEC) approved the Digital Booth Rules-2020 at a meeting on Wednesday, paving the way for increasing the trade volume of the stock market.
The regulator said the move will help to increase the capacity of market intermediaries and create investment opportunities for all resident and non-resident investors in the country.
The booths will be directly managed and supervised by brokerage firms or any of their branches.
BSEC Executive Director Mohammad Rezaul Karim said some people want to invest in the stock market but they cannot do so because of various difficulties.
Consequently, a lot of non-resident Bangladeshis do not invest in the country's stock market. With digital booths being set up in their respective areas, they will be interested in investing in the capital market.
Rezaul Karim said if digital booths are set up, investors living in the country and abroad will enjoy more opportunities to invest in the capital market.
"As a result, the trade volume of both the brokerage firms and stock exchanges will go up around 20%."
The official said brokerage houses will be able to set up digital booths at upazila and district levels and in similar areas abroad.
Investors will be able to complete money financial settlements, cash deposits and withdrawals by using digital booths. Share trading-related activities will be completed through the booths, the official added.
Rezaul Karim said when investors deposit any foreign currency from abroad that will be converted into Taka in their Beneficiary Owners accounts.
Additionally, investors will be able to withdraw money in the currency of the place from where they collect the money, he added.
According to the Central Depository Bangladesh Limited (CDBL), there are 23.60 lakh active BO accounts in the capital market where 1.30 lakh BO account holders are non-resident and 22.30 lakh are resident investors.