A TREC is issued by the Dhaka or Chittagong Stock Exchange and gives the holder the right to trade on that exchange. It does not, on its own, authorise the holder to deal for clients or for its own account. For that, the holder must obtain a registration certificate from BSEC as a stock broker, a stock dealer or both. The two processes have different requirements and timetables, and changes to one often need to be notified under the other. We plan both applications together so that the business can begin trading once every approval is in place.

Foreign shareholding in a Bangladeshi brokerage is possible, but it requires careful structuring and regulatory approval. BSEC and the exchange will review the foreign shareholder's identity, regulatory standing and source of funds, and the inbound investment must comply with the foreign exchange rules administered by Bangladesh Bank, with registration now handled by Invest Bangladesh. Some investors acquire an existing TREC holder while others form a joint venture. We advise on the route that fits the investor's objectives, confirm the current position on foreign ownership and manage each approval in order. The route chosen affects the approvals needed and their timing.

Yes. The firm's registration as a stock broker or stock dealer covers the company, but each individual who executes trades for clients must be separately registered as an authorised representative of that firm. The individual must meet the qualification and fitness requirements set by BSEC, and the firm remains responsible for supervising their conduct. When a representative moves to another brokerage, the registration does not follow them; the new firm must apply afresh. We help brokerages keep their representative register accurate and their supervisory records in good order for inspection. Out-of-date entries are among the first things inspectors check.

There is no single timetable. The duration depends on the completeness of the application, the applicant's ownership structure, whether foreign investors are involved and how quickly queries from BSEC and the exchange are answered. A well-prepared application from a straightforward local applicant will move faster than one involving complex ownership or a change of control. We give clients an indicative timetable after reviewing their documents, and we manage the process actively by anticipating likely queries, rather than promising fixed periods. Applicants who submit complete, consistent ownership and fitness documents usually face fewer queries.

BSEC sets minimum capital and liquidity requirements for intermediaries, and these have been revised from time to time, so the current figures should always be checked against the latest rules and directives before an application is prepared. A stock dealer, which trades on its own account, will be expected to hold capital that supports its proprietary activity, and a firm acting as both stock broker and stock dealer must meet the requirements for each role. We confirm the current thresholds, review the evidence of capital the applicant intends to file and advise on the corporate steps needed to meet them.

Changes in directors, chief executive or significant shareholders of a registered intermediary usually require prior approval from BSEC, and the exchange may also need to approve or be notified. A change in control without consent can lead to regulatory action, including suspension of the registration certificate. Transfers should therefore be documented as conditional on approval, with the necessary corporate filings at the RJSC made only after consent is received. We prepare the approval applications, coordinate with the exchange and align the transaction documents with the regulatory timetable. Informal share transfers made before approval are a frequent problem.

A registered intermediary must keep proper books and records, segregate client money and securities from its own assets, follow know-your-customer and anti-money laundering rules, comply with margin lending limits, file periodic reports with BSEC and the exchange, and renew its registration on time. It must also supervise its authorised representatives and handle client complaints properly. Weak controls in any of these areas are a frequent source of inspection findings. We help firms design practical compliance procedures that reflect their size, client base and trading volumes. We review the procedures annually as the rules and trading activity change.

A show-cause notice should be taken seriously from the day it arrives. The firm should preserve relevant records, identify exactly what is alleged, gather evidence and respond within the time allowed, with a request for a hearing where appropriate. The response should be accurate and measured, since admissions can be used in later proceedings, and any remedial action should be documented. We review the notice, interview the relevant staff, prepare the written reply and represent the firm at the hearing. If a deadline cannot be met, ask in writing for more time before it expires.