Fifty-two new brokerage firms joined the Dhaka Stock Exchange (DSE) on Saturday as the premier bourse awarded the Trading Right Entitlement Certificate (TREC) to them.
The new TREC holders are entitled only to buy and sell shares and they will not hold shares of the DSE.
DSE Chairman Eunusur Rahman chaired the TREC handover programme at the Multi-Purpose Hall in DSE Tower in Nikunja, where Professor Shibli Rubayat-Ul-Islam, chairman of the Bangladesh Securities and Exchange Commission (BSEC), was the chief guest.
After adding the new firms, the DSE has 302 TREC holders, among which 250 are DSE shareholders.
Earlier, the BSEC approved 55 TRECs, but three firms failed to pay the due fees. As a result, the DSE did not hand over their licenses.
As per the rules, the new TREC holders have to start their business by six months of receiving the certificate.
Professor Shibli Rubayar-Ul-Islam said, "The inclusion of 52 new members in our family will further strengthen the capital market. There is also joy in the arrival of new members in this family after a long time."
"Hopefully, the old members of the family will give them direction, and cooperate with them affectionately. The new members also have to be careful so that they can do well with the companionship of the old ones," he said.
Shibli Rubayar-Ul-Islam said, "Many people misunderstand the capital market and label it as an unproductive sector. They may just think of the secondary market as the stock market. But, the capital market is not just that."
"We are helping the expansion of the productive sector through the primary, bond and derivative markets, then why is the capital market being called unproductive?" he questioned.
"Critics will continue to criticise, while we will act as accountable to our consciences without paying attention to that. If someone tries to interrupt, criticise, say a lot without understanding – we do not want to waste time listening to them," he said.
Rokibur Rahman, director of DSE said, "I think there will be Tk5,000 crore transactions in the capital market in the next one year. And the index does not matter. It will rise to 10,000, 15,000, 20,000."
"If the share prices rise, the index will rise too. Many people ask if the stock market will last. I tell them it will last 100%, because the trading market always survives. But there can be corrections. For example, when a share worth Tk50 goes up to Tk100, it can go down to Tk80, but it will not come down to Tk50," he added.
Emphasis on savings protection and returns
At the meeting, Shibli Rubayar-Ul-Islam emphasised protecting the investors' savings and giving them proper return.
He said, "The commission is working as business friendly to the capital market. There are a small number of organisations that do not want to follow the rules and try to do what they please. People give their hard earned money to you, and they have the right to get protection and return for that money."
"If they do not get any return against their savings, why would they keep the money? For this reason, many did not come to the capital market. If this situation continues, no one will want to come to the capital market. Gradually the market will get smaller," he continued.
"Where there is no protection for the investors, no investment will come. So, you should respect the ones who give you their hard earned money, and protect their savings," he said.
Regarding the new TREC holders, he said, "Probably 200 among the old TREC holders are active now. The new TREC holders will do business along with them. In this case, they have to come up with innovative ideas. There is a lot of remittance money in the country. Many will come to the market if we can ensure a good return through governance. This market will be the driving force of the economy in the coming days."
DSE Managing Director Tarique Amin Bhuiyan, Director Salma Nasreen, and President of DSE Brokers Association (DBA) Sharif Anwar Hossain addressed the meeting.