BSEC to allow stockbrokers to open outlets abroad

Bangladesh Securities and Exchange Commission will allow brokerage houses to open branch office outside the country to expand the capital market.

The BSEC chairman Shibli Rubayat Ul Islam at a meeting on August 12 asked managing directors of the two stock exchanges to take necessary measures in this regard.

A senior BSEC official told Sunbd that there are high net worth non-resident Bangladeshi in the foreign countries who want to invest in the Bangladesh.

Brokerage houses would involve them with the county’s capital market that would also raise trading volumes.
However, all brokerage houses would not get the facility. Only specific houses which could comply with rules would be allowed to open outlets abroad.

Sources said that the regulator asked the bourses to form a regulation on the issue to avail real time trading and also to prevent complexities in deposit and withdrawal of cash.

Chittagong Stock Exchange managing director Mamun-ur-Rashid said that the BSEC chairman verbally directed to take measures regarding opening outlets abroad.

The brokerage houses which intend to open branch outside the country would apply to stock exchanges, and the exchanges would discuss with the commission, he said.

Only eligible houses would get the approval for opening branches in a foreign country.