Why are Reliance Brokerage's transactions suspended?

The Dhaka and Chittagong stock exchanges have suspended Reliance Brokerage Services Ltd's transactions for the last two working days due to its inability to renew its licence. 

As a result, investors cannot make share transactions through the brokerage firm, which is a member of the Dhaka Stock Exchange and Chittagong Stock Exchange, for the time being.

A subsidiary of AVIVA Finance Limited, the firm offers a full-fledged standard brokerage service for retail, institutional, NRB, and foreign clients.

The stock exchanges said that they have suspended the transactions as the company failed to renew its licence from the Bangladesh Securities and Exchange Commission.

"We have suspended the transactions due to the company's inability to renew its licence. There is no other reason," M Saifur Rahman Majumdar, acting managing director of the DSE, told The Business Standard.

Meanwhile, Mohammad Rezaul Karim, spokesperson for the market regulator, told TBS that the company's licence is still under process but did not confirm how many days it will need.

The company's Managing Director and Chief Executive Officer Mohammed Shahidul Islam did not immediately respond to TBS' request for comment.

However, sources concerned say that along with the charter renewal, the current name of the company will be changed to AVIVA Equity Management Ltd, and an application has been filed with the BSEC for this.

But the renewal process is taking time due to the lack of clearance from the Credit Information Bureau (CIB).