Brief Presentation on TREC Affairs Department

Presented by
Md. Abdur Razzak
M. Com (Mgt.), MBA (Finance and Accounting)
Deputy General Manager
Head of TREC Affairs
Phone +880241040189, Ext-1181
Cell # 01713-425815
abdur.razzak@dse.com.bd;
razzak291069@gmail.com

I joined in the Exchange on the 1st November 1994. I have been serving at the TREC
Affairs Department of DSE since 2013.
In my tenure of service in DSE, I have worked in the following departments and Branch:
1. Clearing and Settlement Accounts;
2. General Accounts;
3. Research and Development (R & D);
4 OTC Market; and
5. DSE Rajshahi Branch.
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 Objectives of the Session

• To have primary knowledge regarding the scope and

functions of TREC Affairs Department as well as the same
of Exchange;
• To learn about Trading Right Entitlement Certificate (TREC)
and Trader Certificate (TC), the heart of the Exchange;
• To learn about the Registration Certificate of Stock-Broker,
Stock-Dealer and Authorized Representative (AR)- already
covered in the BSEC
 A brief information about Capital Market

• Capital market is a market where buyers and sellers engage in trading of

financial securities like bonds, stocks, etc. The buying/selling is undertaken by
participants such as individuals and institutions.

• In the primary market, investors buy securities directly from the company
issuing them.

• In the secondary market, investors trade already issued securities among

themselves.
 Stock Exchange

• “Stock Exchange "means any person who maintains or provides a market

place or facilities for bringing together buyers and sellers of securities or
for otherwise performing with respect to securities the functions
commonly performed by a Stock Exchange, as that term is generally
understood, and includes such market place and facilities (Ordinance,
1969).

• A stock exchange or bourse provides the required facility for Stock-Brokers and
trader as they can be involved in buying and selling securities.

• It is a trading venue, an organized market.

Definition of Market:
• A market is a place with the required set of conditions where buyers and sellers
meet each other for the purpose of exchanging goods and services for money.
 Stock Exchange
Product:
Selling Listed Securities Buying
Customer/ at DSE (592) Customer/B
BO Account O Account
Holders Holders

Stock Exchange (2)

TREC
Holder/Stock
Broker/Dealer
(DSE-250)

Trading Work Station

(TWS)
 Listed Companies at DSE
Sector wise Company List
# Name of the Industry Quantity
1 Bank 30
2 Cement 7
3 Ceramics Sector 5
4 Corporate Bond 2
5 Debenture 8
6 Engineering 40
7 Financial Institutions 23
8 Food & Allied 17
9 Fuel & Power 19
10 Insurance 48
11 IT Sector 10
12 Jute 3
13 Miscellaneous 13
14 Mutual Funds 37
15 Paper & Printing 4
16 Pharmaceuticals & Chemicals 32
17 Services & Real Estate 4
18 Tannery Industries 6
19 Telecommunication 2
20 Textile 56
21 Travel & Leisure 5
22 Treasury Bond 221
Total Companies: 592
 TRADING IN DSE

• DSE TRADING
TERMINAL

Trading Work Trading Work

Station (TWS) Station (TWS)

Share Check
Check Client Fund
BO A/c Selling Broker Buying Broker A/C

Client Client
Order Order

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 SETTLEMENT OF TRANSACTION IN DSE

Fund Share
Bank CDBL
Fund
DSE Share

Selling Buying
Broker Broker

Clien Client Client

Client
t

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 TREC Affairs Department (TAD) Deals with

TC-5,000

AR-4,891
Stock-Broker Reg.
Certificate-243 HO-242
TWS-4,610
Stock-Dealer Reg.
Certificate-235 Ext. of HO-428
Office-1,288
TREC Affairs Dept.

BR-618

Appnt. of New Director

(TAD)

Change of TREC Rep.

Change in Management
Change of Com.
Share Transfer (DSE Authority
TREC Service-250 TRECs shares & Int. shares)
Branch In-charge
Name Change
BSEC, NBR, Bangladesh Bank,
Bank and Financial Institution Com. Officer of BR
Division, Ministry of Finance Compliance
Audited Financial
Statements

Numerical Data updated as on August 22, 2019

Organogram of TAD

Divisional Head - GM

Departmental Head-
DGM/AGM

Sr. Manager /Manager/Dy. Manager

Sr. Executive/Executive
 Manpower OF TREC Affairs Dept.

Designation Number of Manpower

DGM 1
Sr. Manager 1
Manager 1
Sr. Executive 1
Executive 5
Jr. Executive 4
Sr. Office Asst. 1
Jr. Office Asst. 1
Total 15
The Functions of TREC Affairs Department are being Regulated By:

 The Securities and Exchange Ordinance, 1969

 The Securities and Exchange Rules, 1987

 The Securities and Exchange Commission (Stock-Dealer, Stock-Broker and

Authorized Representative) Rules, 2000
 The Exchanges Demutualization Act, 2013
 DSE Demutualization Scheme

 Dhaka Stock Exchange (Trading Right Entitlement Certificate) Regulations,

2013
 The Companies Act, 1994
 The Articles of Association of DSE
 Dhaka Stock Exchange

Trading Right Entitlement Certificate (TREC)

A brief information about Trading Right Entitlement Certificate (TREC)

 Originated after Demutualization i.e. 21 Nov 2013 as per the Exchanges

Demutualization Act, 2013
 Having TREC is the precondition for providing broking service at Exchange
 Regulated by Trading Right Entitlement Certificate (TREC) Regulations, 2013
 No company is entitled to hold more than 1 TREC at a time
 Not pledgable
 Not transferrable after November 20, 2018
 Qualification for obtaining TREC

 Company limited by shares

 Min. Paid-up capital : Tk. 10 million
 Maintain Net-worth : At least 75% of Paid-up cap. at
any time
 Adequate professional management
 Comply Fit & Proper criteria
 No Director from expelled/cancelled/default TREC
 Free from other disqualifications as per Securities
and Exchange Ordinance 1969 and Rules
Issuance, Suspension and Cancellation of TREC

 Issuance:
 Full authority of DSE at a fee of Tk. 1 Lac
 Approval of DSE shareholders is required for issuance of TREC within 5
years from the date of demutualization
 After 5 years of demutualization, DSE Board can issue
 Suspension by:
 BSEC
 Exchange: Breach of law, false information & Exchange discretion
 Cancellation by:
 BSEC
 Exchange: Addition to the above, Prohibited acts, defaulter
 Court Order
 Validity and Transfer of TREC

 Validity and Renewal of TREC

 Duration of Validity: Valid for 1 year from the date of issuance or
renewal
 Renewal: Subject to payment of fee amounting to Tk. 50,000 per
TREC per year

 Transfer and Resignation of TREC

 Transferability:
 Once within 5 years from the date of demutualization
 DSE approval is required
 Resignation:
 TREC Holder wish
TRADER CERTIFICATE (TC)
TRADER CERTIFICATE (TC)
 Features of TC & Qualification for Obtaining TC

 Obtaining TC is a pre-requisite to be a Trader

 Qualification for obtaining TC by a person

 Citizen of Bangladesh
 Age 21 years or more
 Graduation
 Fit and Proper Criteria
 Not convicted by any court
 Not barred from any other disqualifications as determined by
DSE
Issuance, Suspension and Cancellation of TC

 Issuance
 Full authority of DSE at a fee of Tk. 10,000/-
 Suspension
 By CRO not more than 14 days at a time
 Cancellation
 By Exchange:
 Prohibited activities
 Violate code of conduct
 Buying/Selling in own account
 Violation of TREC Regulations
 No cancellation without opportunity of being heard
 Validity, Transfer and Fine of TC

 Duration of Validity and Renewal of TC

 Duration of Validity: Valid for 1 year from the date of its issuance or
renewal
 Renewal: Subject to payment of fee amounting to Tk. 5,000 per TC per
year
 Transfer, Association and Release
 Not transferable
 Association: must be associated with any TREC holder to conduct
trading activities
 Release: 60 days prior notice, after 60 days auto release
 Fine and Penalties

 Exchange authority
Q&A

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