Chitattgong Stock Exchange (CSE) has moved to issue new Trading Right Entitlement Certificates (TRECs), a pre-requisite for obtaining licenses of stock brokers, in an effort to boost the turnover value and diversify the market, officials said.
The decision of issuing new TRECs was taken at a board meeting of the port city bourse.
As per the board's decision, the new TREC holders will only get broker's license as no share will be issued.
The proposal of issuing new TRECs (Trading Right Entitlement Certificates) will be placed in the company's Extra-ordinary General Meeting (EGM) that will be held on November 28.
The managing director of the port city bourse Wali-ul Maroof Mation said the board has decided to issue TRECs as part of the continuous move initiated to expand the market along with boosting turnover value.
"We will place the proposal of issuing TREC before the share holders. At the EGM, the share holders will give final decision before approving the proposal," Maroof said.
Asked about the reasons for issuing new TRECs, CSE chairman Dr. Muhammad Abdul Mazid said many existing TREC holders are not active in the market.
"The market cannot be vibrant with the inactive brokers. That's why the decision of issuing new TREC has been taken to create competition and demand in the market," Dr. Mazid told the FE.
He said the regulatory approval will also be required to issue new TRECs.
The CSE officials said they are yet to decide how many new TRECs will be issued.
Presently, there are 148 shareholders in the port city bourse.
After the completion of demutualisation process, the CSE turned into a profit oriented organisation with a paid-up capital worth Tk 6.34 billion from non-profitable entity.
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