- 1. DSE's 50 brokerage firms come under this system
- 2. CSE's 30 firms also included
- 3. BSEC imposed conditions to implement properly
- 4. All intermediaries will be included gradually
- 5. Online reporting maintains standard
- 6. All brokerage firms will be included by 2021
Initially, 80 brokerage firms have come under online communication framework for risk-based capital adequacy (RBCA) reporting among the market intermediaries.
Of them, 50 belong to the Dhaka Stock Exchange (DSE) and the rest 30 to the Chittagong Stock Exchange (CSE).
Risk-based capital adequacy is a minimum capital requirement for firms set by the Bangladesh Securities and Exchange Commission (BSEC).
These requirements ensure that each financial institution has enough capital on hand to sustain operating losses while maintaining a safe and efficient market.
The stock exchanges will formally inaugurate this system on 16 August.
The stock market regulator has approved this system to implement an online communication framework for RBCA reporting among the market intermediaries last week.
The commission imposed some conditions for the stock exchanges to implement properly.
BSEC officials said all brokerage firms will come under the system by December 2021.
Merchant bankers, portfolio managers, asset managers, fund managers, credit rating companies also will come under this system gradually, they added.
The 80 brokerage firms will submit their reports online from next month. In the October quarter, 150 brokerage firms belonging to DSE and 60 others belonging to CSE will be included in this system.
Now the commission examines the net capital balance of the brokerage firms.
As a result of this system, the reporting standard will improve and the commission also oversees the liquid capital balance of the firms.
The stock exchanges will be responsible for the continuous maintenance and keeping the data safe and secured of this system. It will also maintain database and backup systems.
The exchanges will make further development and scale-up on its own motion and when the commission directs them.
The bourses will also arrange sufficient training or workshops for the users of the system.
The bourses will ensure authentication and the implementation of the procedure of maker-checker-and-approver for data input in this system.
Its annual charge will not exceed Tk10,000. As the system will be open for use to any market intermediary, the stock exchanges will be responsible for extending all-out support and cooperation.
The commission may, from time to time, direct the exchanges or any market intermediary to comply or impose any condition in respect to the system.