Each initial shareholder other than those described in the scheme of Demutualization of the Exchange shall be granted a TREC as mandated by the Demutualization Act.
Provided that without prejudice to the generality of these regulations initial shareholders shall have to comply with the requirements of the Demutualization Act and the Scheme of Demutualization approved thereunder.
A person shall not be eligible for obtaining a TREC from the Exchange or retaining a TREC unless the following conditions are satisfied:
it has obtained or is in the process of obtaining a registration certificate as stock dealer or stock broker under the Broker Dealer Rules and such registration certificate has not been cancelled by the Commission. In the event that a registration certificate is not issued by the Commission within the timeframe stipulated in the Demutualization Act, the TREC shall be cancelled;
it is a company limited by shares incorporated under the Companies Act, 1994;
it has a minimum paid up capital of Taka 10,000,000 (Ten Million) only: Provided that the audited net worth of the TREC Holder shall not be less than 75% of its paid-up capital at any time;
it must have adequate professional management including compliance officer, human resource, information technology infrastructure and financial capability as may be determined by the Exchange from time to time;
its promoters, sponsors, substantial shareholders, MD/CEO, directors and key executives comply with the “Fit and Proper” Criteria as may be specified by the Commission from time to time;
none of its directors have served as directors in a TREC holder or member of any Exchange which had been declared a defaulter or expelled as a member or its TREC has been cancelled by the Exchange;
it has adequate policies, procedures, systems and controls to handle conflict management, monitoring of unethical conduct and market abuse, resolve investor complaints, prevent money laundering and combat terrorist financing and ensure compliance with applicable laws
The Exchange may specify such standards for good governance, enhanced disclosures, investor protection, accountability, investor service and infrastructure requirements with regard to applicants as it may deem necessary from time to time.
No applicant shall be issued a TREC of the Exchange if it or any of its directors:
has been adjudged bankrupt or a receiver order in bankruptcy has been made against it or it has been proved to be insolvent even though it has obtained its final discharge;
has compounded with its creditors for less than full discharge of debts;
is a loan defaulter as per CIB report of Bangladesh Bank;
has been convicted for any offence of moral turpitude;
has been at any time expelled or declared a defaulter by any stock exchange, or its TREC has been cancelled or it has been debarred from trading in securities by any regulatory authority including the BSEC or any court having jurisdiction;
incurs such disqualification under the provisions of the Securities and Exchange Ordinance, 1969 or Rules or Regulations made there-under or any other law for the time being in force, so as to disentitle such persons from seeking TREC of a stock exchange;