The securities regulator has allowed two brokerage firms to open their digital trading booths in Dubai and Toronto as part of its move to enhance the participation of Non-resident Bangladeshis (NRBs) in the country's capital market.
The Bangladesh Securities and Exchange Commission (BSEC) has recently allowed the UCB Capital Management to open its digital trading booth in Dubai, the most populous city in the United Arab Emirates (UAE), following a proposal put forward by it.
Another brokerage firm--Padma Bank Securities--has also been allowed to open its digital trading booth in Toronto of Canada as per its proposal.
"We have allowed two brokerage firms to open their digital trading booths abroad, subject to the approval of the stock exchanges. Our objective is to ensure the participation of NRBs in the capital market," said Shaikh Shamsuddin Ahmed, a commissioner at BSEC.
The securities regulator has recently approved rules for opening digital trading booths at home and abroad.
"The stock market will expand if the brokerage firms can open digital booths. So, the stock exchanges should speed up their process required to start the operations of digital trading booths abroad," Mr. Ahmed said.
Asked, chairman of Dhaka Stock Exchange (DSE) Eunusur Rahman said the stock exchange needs to finalise their own process to execute the decision of opening digital trading booths. "The DSE is working on this issue."
Another DSE official said they are working to clear the process of settlement of transactions to be executed at digital booths abroad.
The officials of UCB Capital Management and Padma Bank Securities could not be reached for their comments about the status of opening digital trading booths abroad.
On December 13, 2020, the securities regulator issued a directive for opening digital trading booths at home and abroad.
As per the directive, the digital trading booths can be opened in union, municipality and city corporation areas of the country. Such digital booths will also be allowed abroad.
Any stockbroker may apply to the commission in a prescribed form for opening and operating such digital booths.
It also said the booths shall be directly controlled by the head office or any branch of the stockbroker.
The stockbrokers will have required infrastructures to operate such booths. They will have to deposit Tk 100,000 for each booth in the country and Tk 1.0 million outside the country.
Cash transactions for trade will be limited to a maximum of Tk 200,000 in rural areas and Tk 875,000 in urban areas.
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