DSE cancels trading rights of 2 brokerages over non-compliance
Market analysts say the move will strengthen market governance and send a clear message against irregularities in the brokerage sector
The Dhaka Stock Exchange (DSE), the country's prime bourse, has revoked the Trading Right Entitlement Certificates (TREC) of two brokerage firms – Mahid Securities Ltd and Al Haramain Securities Ltd – citing regulatory non-compliance. The move aims to safeguard investors, ensure transparency, and reinforce market discipline.
According to a notice on DSE website today (29 October), Mahid Securities Ltd's TREC (No. 273) was canceled under Rule 7(3) of the Bangladesh Securities and Exchange Commission (Trading Right Entitlement Certificate) Rules, 2020. The rule specifies that no firm can commence trading without obtaining registration as a stock dealer and/or stock broker. As Mahid Securities failed to secure the necessary license, it could not begin operations, leading to the cancellation of its certificate.
The firm also violated Rule 7(1), which states that if a brokerage fails to comply with regulations, ignores commission directives, or causes loss to investors' money or interests, the Bangladesh Securities and Exchange Commission (BSEC) may suspend or cancel its trading rights. This rule is designed to safeguard investors and ensure market discipline.
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In this context, any financial or legal claims related to Mahid Securities' TREC must be submitted in writing with supporting documents. Complaints should reach DSE's Chief Regulatory Officer by 13 November 2025.
Similarly, Al Haramain Securities Ltd's TREC (No. 263) has been canceled under the same Rule 7(3). The firm violated Rule 3(2), which pertains to financial capacity, operational structure, and regulatory compliance. DSE noted that the firm's failure to meet these conditions led to the revocation of its license.
Customers of Al Haramain Securities have been instructed to review their accounts and settle any pending funds or securities. Those facing settlement issues should submit written complaints along with relevant documents to DSE's Chief Regulatory Officer by 13 November 2025.
Market analysts say the move will strengthen market governance and send a clear message against irregularities in the brokerage sector. They also warn that operating without regulatory compliance poses risks to investors and can destabilise the market.
