DSE decided to issue the trek

The Board of Directors of the Dhaka Stock Exchange (DSE), the country’s main capital market, has decided to issue a Trading Right Entitlement Certificate (Trek). The decision was taken at the DSE’s 990th board meeting on February 2.

According to DSE sources, the Dhaka Stock Exchange will issue a certificate of securities transaction rights to conduct securities transaction activities under the law on the basis of eligibility in accordance with the relevant laws, schemes, rules and regulations.

Trek is a company that mediates transactions in the capital market. Through which investors will trade shares. As such, the trek is a lot like a broker house. However, the owners of the trek will not get shares of the Dhaka Stock Exchange like the brokerage house.

Earlier, the commission finalized it on September 24, 2020.

According to the source, the condition of eligibility for the trek outside the primary shareholders is that if a company, statutory body or a local person or organization approved by the commission wants to take the trek, they will need a paid up capital of Rs 5 crore. At the same time, another 3 crore rupees has to be kept as security.

On the other hand, if they want to take a joint trek with a foreign company, they will need a capital of Tk 8 crore. 4 crore should be kept as security.

If a foreign company wants to take it alone, it will need a paid up capital of Tk 10 crore. A security deposit of Rs 5 crore is required. At the same time, the amount of all-time net assets will not be more than 75 per cent of the original principal paid.

On the other hand, to take the trek, you have to apply to DSE with tk 1 lakh. This money will not be refunded. If it is decided to issue a trek with an organization, he will have to pay another Tk 5 lakh for registration.

Sunbd/NJ