Stockbrokers have expressed their concerns about various aspects of the draft Stock Dealer, Stock Broker, and Authorised Representative Regulations and called for a halt in its finalisation until June 2024, citing the current political situation and the upcoming national elections.
The Bangladesh Securities and Exchange Commission (BSEC) has prepared the draft to ensure the protection of clients of brokerage houses. Stakeholders have been invited to provide their opinions until 9 November.
The DSE Brokers Association (DBA), a platform representing trading right entitlement certificate (Trec) holders of the Dhaka Stock Exchange (DSE), conveyed their concerns during a discussion on the rules at the DSE's Multipurpose Hall on Wednesday.
In a press release, the DBA stated that representatives from 209 brokerage houses participated in the event and called for further discussions on the rules. Concerns were raised regarding the potential impact of implementing such rules just ahead of the national elections, with speakers highlighting potential consequences for the economy, including the capital market.
One specific concern addressed in the draft rules is the requirement for every brokerage firm to appoint a representative of its clients as a director on its board. Additionally, the rules propose that the appointment or termination of a chief executive officer at brokerage houses must receive regulatory approval.
The draft rules also outline guidelines related to minimum paid-up capital requirements, investment, client account management, and the appointment and termination of officers and authorised representatives for stock brokers and dealers.
During the discussion, DBA Vice President Md Saifuddin, CFA, presented the concerns of the association.
Various industry figures, including Ahasanul Islam MP, chairman of Mona Financial Consultancy & Securities; Mostaque Ahmed Sadeque, managing director of Investment Promotion Services; Mamun Akbar, MD of Ali Securities Co; AS Shahudul Huque Bulbul, MD of Bulbul Securities; Lailun Nahar Ekram, MD of ASENZ Securities; and Md Shakil Rizvi, MD of Shakil Rizvi Stock, among others, shared their perspectives on the matter.