BSEC approves digital booths for brokers
Stock brokerage firms can apply to the securities regulator seeking approval for any booth after obtaining a recommendation from the stock bourses
Highlights:
- Digital booths are expected to help increase trade volume
- The stock market will reach rural investors across the country
- Brokerage firms will deposit Tk1 lakh for each booth in the country, Tk10 lakh for each one outside the country
- Booths will be managed by the head office of the branch
- Firms will ensure trading security by following regulations
Stock brokers can now open digital booths, both across the country and overseas, in order to reach out to a wider population of investors.
The Bangladesh Securities and Exchange Commission (BSEC) paved the way for such expansion for stock brokers on Monday, issuing a directive.
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Stock brokerage firms can apply to the securities regulator seeking approval for any booth after obtaining a recommendation from the stock bourses.
Only the firms with adequate infrastructure, facilities, financial strength, and manpower will be able to expand, said an official of the BSEC.
The booths will be directly managed and supervised by the brokerage firms and cannot be operated by a third party.
The firms will be able to set up digital booths at the: City Corporation, municipality, Union Parishad, and district levels across the country. They can also set up booths abroad to expand their business and ease services for capital market investors.
But the firms will have to get the necessary permission of the country's authority concerned after getting the approval of the commission.
The brokerage firms will deposit Tk1 lakh for each booth in the country and Tk10 lakh for each booth outside the country.
The firms will have to submit the relevant documents to the commission immediately to secure approval for the booths.
Considering the risk associated with money laundering, the transactions in the booths will follow the rules, regulations and guidelines regarding anti-money laundering.
The firms will also ensure proper safety and security measures considering internal and external factors.
The firms will submit a report on a booth to the stock exchange for every quarter within ten working days of the end of the quarter. The stock exchange will submit a summary of all the reports to the commission within 15 working days from receiving the reports.
The commission will take penal action for any non-compliance in due course under the provision of securities laws.
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.
