Trading licence of Sonali Securities revoked

FE Team | Published: May 05, 2026 22:49:15

FE REPORT
The Dhaka Stock Exchange (DSE) has revoked the Trading Right Entitlement Certificate (TREC) licence of Sonali Securities for violating securities rules relating to minimum capital requirements.
The prime bourse on Tuesday announced the regulatory decision on its website, saying the brokerage firm failed to maintain the required capital for trading activities.
Sonali Securities, holder of TREC No. 261, obtained its stockbroker and stock-dealer licence from the Bangladesh Securities and Exchange Commission in 2021.
Under the Bangladesh Securities and Exchange Commission (Trading Right Entitlement Certificate) Rules, 2020, a TREC holder must maintain a minimum paid-up capital of Tk 50 million, and its equity capital must not fall below 75 per cent of the initial paid-up capital at any time.
The regulations empower the securities regulator to suspend or cancel trading rights if a brokerage firm fails to comply with directives, violates rules, or jeopardizes investors' interests.
The prime bourse also requested clients of the TREC holder to review the cash and securities balances of their respective accounts maintained with the company and settle any outstanding transactions, if any.
"If any investor or client has a complaint regarding the settlement of funds and securities, he/she is requested to submit a written complaint along with all relevant supporting documents to the Chief Regulatory Officer by May 21," reads the DSE disclosure.
The latest move is part of a broader regulatory crackdown. Last year, the DSE revoked the licences of four brokerage firms-SQ Brokerage House, Al Haramain Securities, Mahid Securities, and Tristar Securities. All of them obtained licences in 2021.
Among them, Al Haramain Securities and Tristar Securities lost their licences due to failure to maintain the required capital, while SQ Brokerage House and Mahid Securities lost their licences for not commencing trading operations within the stipulated time frame.
After the issuance of a licence, a brokerage firm is mandated to start business operations within six months.
In 2021, the then BSEC commission, led by Prof. Shibli Rubayat-Ul-Islam, issued licences to 59 new brokerage firms, raising the total number to 309. However, these new TREC holders were allowed only to trade shares and were not granted ownership stakes in the exchange.
Over the past few years, investigations by the securities regulator have uncovered instances of fund misappropriation involving several brokerage firms. This led to licence cancellations or trading suspensions at Shah Mohammad Sagir, Crest Securities, Dawn Securities, Tamha Securities, Banco Securities, and Moshihor Securities.
Currently, around 280 brokerage houses remain operational at the DSE.
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