FE Today Logo

Meghna Bank set to make debut in stock mkt operation

Mohammad Mufazzal | June 21, 2015 00:00:00

Meghna Bank Ltd is set to start its operation in the capital market soon as it has already opened a subsidiary company named 'Meghna Bank Securities', officials said.

The officials of Dhaka Stock Exchange (DSE) said the Meghna Bank has already completed a deal to purchase the TREC (Trading Rights Entitlement Certificate) and shares of A B S Safdar & Co. Ltd, an existing brokerage firm.

"Meghna Bank has opened a subsidiary to participate in the stock market. Now they need a broker-dealer license. The DSE board approval is required to complete the process of transferring the TREC and shares of A B S Safdar & Co. Ltd. to Meghna Bank Securities," said a DSE official.

He said after the completion of due process in DSE end, broker-dealer license will be issued in favour of Meghna Bank Securities through the securities regulator.

Mohammed Nurul Amin, managing director of Meghna Bank, acknowledged their upcoming operation in the capital market.

"I opened brokerage firm in my previous bank. I will work for the development of the capital market by utilising my previous experience," Mr. Amin said.

He said any newly opened brokerage firm will be in a suitable position than the existing ones as they are under pressure due to margin loans provided before the stock market debacle.

"We will have no burden of previous loans. That's why we are expecting a smooth operation in the capital market," Mr. Amin added.

He also has expressed his optimism to start their operation in the capital market as early as possible.

The transfer of the TREC and shares from the A B S Safdar & Co. Limited is the first incident after the completion of demutualisation process.

Before the demutualisation, two brokerage firms were sold through the intervention of DSE management.

As per the demutualisation scheme, initially 40 per cent shares of A B S Safdar & Co. Ltd. will be transferred to Meghna Bank. And the remaining 60 per cent shares will be preserved in a block account for Meghna Bank.

Presently, out of 250 members, 233 are conducting their operations in the premier bourse.

Out of 52 institutional investors, 27 brokerage firms are owned by banks in the DSE.

[email protected]

Share if you like