Stockbrokers seek nod for opening new branches

Dhaka Stock Exchange Brokers Association has requested market regulator Bangladesh Securities and Exchange Commission to allow stockbrokers to open new branches outside the Dhaka city.
DBA sent a letter to the market regulator on September 27 highlighting the necessity of their business expansion as some brokerage houses have potential to expand their operation and sustain in the long run to support the market, DSE officials said.
The BSEC after the market crash in 2010-11 became conservative regarding giving brokerage houses permission for new branch opening, they said.
They said newly established brokerage houses had been suffering most for the BSEC’s strategy as they could not expand their business further and continued operating with few branches.
They also said that many brokerage houses, especially the banks’ subsidiary ones, wanted to open branches outside the capital and near their divisional bank headquarters to increase clients.
A number of brokerage houses including LankaBangla Securities also requested the BSEC to give permission for opening information booths relating to the capital market but the BSEC left the proposal on the shelf, they said.
A number of brokerage houses claimed that the BSEC’s conservative strategy kept their operations confined to the capital.
DBA in the letter said that the capital market experienced bearish trend most of the time due to money market regulatory constraint that could be overcome with expansion of stockbrokers’ networking that included branches, customer service points and digital marketing points in the municipal areas of divisional headquarters.
DSE officials said that the stockbrokers had been demanding the approval for few years to expand their operations, but the commission remained reluctant to consider the issue.
DBA president Mostaque Ahmed Sadek told New Age that the country’s capital market was expending day by day and brokerage houses should go with the flow.
Shahjalal Islami Bank Securities chief executive officer Anwarul Haque said that opening new branches would enable the
Source: http://www.newagebd.net

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