Ace all-rounder Shakib Al Hasan's Monarch Holdings Limited, with the Dhaka Stock Exchange (DSE), applied to the Bangladesh Securities and Exchange Commission (BSEC) for the market maker licence, according to sources at the securities regulator.
The company applied for the licence on 8 May, said sources, adding the DSE has sent the application after initial verification to the BSEC for final approval.
Monarch Holdings is a listed brokerage house at both Dhaka and Chattogram bourses. Bangladesh T20 cricket captain Shakib Al Hasan is the chairman of the company.
According to the application, Monarch Holdings wants to be the market maker "to support" the share market.
Market makers help keep the market functioning, meaning if someone wants to sell a bond, they are there to buy it. Similarly, if someone wants to buy a stock, they are there to have that stock available to sell to you.
Market makers are useful because they are always ready to buy and sell as long as the investor is willing to pay a specific price.
Be Rich Ltd, a stock broker of Chittagong Stock Exchange, got approval as the country's first market maker for the stock market in 2021. Subsequently, Green Delta Securities got approval as the second market maker.
Apart from Monarch, the securities regulator currently has two applications from ICB Securities Trading Company Limited and Sohel Securities.
According to the BSEC (market maker) rules, a registered market maker shall conduct market operations with utmost integrity, honesty, skill and devotion. A firm will get the approval for one year and all their accounts will be preserved for ten years. Authorised market makers shall take necessary steps to ensure liquidity and fair pricing of securities or shares.
Recently, Shakib and his Monarch Holdings made the headlines for reported stock manipulation.