Stockbrokers can now set up digital booths under the supervision of its respective head office or branch offices at city corporations, municipality and union parishad headquarters and similar types of areas abroad to cater to more investors.
After the stock market crash in 2010, the Bangladesh Securities and Exchange Commission (BSEC) had put a bar on opening brokerage house branches beyond the capital.
“The capital market has been expanding day by day. Therefore, we feel this was a necessity for our business expansion,” said Sharif Anwar Hossain, president of the DSE Brokers Association.
The stockbrokers must have the requisite infrastructure and facilities, financial soundness and manpower to operate the booth, said the directive issued by the BSEC on Sunday.
In case of establishing a digital booth outside the country, the stockbroker will have to take necessary permission of the authority of the country concerned after getting the approval from the commission, it added.
As per the directive, the stockbroker will deposit Tk 1 lakh for each booth in Bangladesh and Tk 10 lakh for each booth outside of Bangladesh to the exchange as collateral. The amount would be refunded at the closure of the booth.
The regulator took the decision with the view to expanding the business of stockbrokers and also to make it easier for investors to get services, BSEC Spokesperson Md Rezaul Karim told Dhaka Tribune.
More local and foreign investors can be involved with the country’s capital market that would also help the market to flourish.
The move will promote the bourses and educate the people who lack knowledge of capital market investment, Hossain said.
The NRBs will be benefited from the outlet facility as they will not depend on others in case of depositing or withdrawing funds from their beneficiary owner’s accounts.
This is good news for the investors, said Mohammed Shafique Ullah, who resides in Canada.
“We the Canadian citizens of Bangladeshi origin need booth services to apply for the upcoming IPOs and the regular trading of Dhaka Stock Exchange under the supervision of Bangladesh High Commission, Canada,” he added.