11 brokerage firms in CSE hold single-digit BO accounts
Poor performing and inactive brokerage firms have already been reached out by CSE
Highlights
- 52 brokerage firms holds less than 1,000 BO accounts
- Six dealers have no investments, seven firms inactive
- With 148 members, CSE per day trade below Tk100cr
- Officials said efforts are on change the market outlook
Some 11 brokerage firms of the Chattogram Stock Exchange (CSE) hold only single-digit beneficiary owners (BO) accounts as 52 brokerage houses hold below 1,000 BO accounts till 20 September this year.
Besides, there are six brokerage houses in the port city bourse who do not have any investment in the capital market.
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The Bangladesh Securities and Exchange Commission (BSEC) officials said the stock market regulator has already asked the firms through the CSE to be back in business immediately.
"Otherwise, they may face licence cancelation or membership handover," said one of the officials.
He said seven brokerage firms of the Chattogram bourse are not in operation now.
The six houses who do not have any investment in the dealer accounts are – Oasis Turner, AM Securities and Financial Services, AK Khan Securities, 3A & Company, Popular Life Securities and Firstlead Securities Ltd, according to the officials who preferred not to be named.
The list of single-digit BO account holders includes Nurjahan Securities, Norban Securities, NC Securities, Unity Shares Trade, TSI Securities, MKM Securities, National Securities & Consultants, and Southern Capital Ltd, added the sources.
NC Securities Limited has only three BO accounts that are active for transactions. The brokerage firm is now not in operation.
The firm's managing director Md Nobab Khan told The Business Standard that they would return to business soon.
He claimed the brokerage firm had a lot of BO accounts in 1996 and 2010. But the investors switched accounts to other firms as the Chittagong City Corporation bulldozed the NC Securities office.
Like NC Securities, another house Unity Shares Trade Ltd has only five BO accounts that are active for the transaction.
Nurul Qayyum Khan, chairman of the brokerage firm, also said they are trying to resume the operations within this year.
"We did not find enough trusted and skilled manpower for my firm. But I am now desperately looking for new staffers as soon as possible," he added.
CSE officials said the exchange has already reached out to the brokerage firms that are not in operation and keep posting poor performances. The stock exchange has set a deadline for operation resumption on a case-to-case basis.
But it is not possible to bring them back to the market overnight, they noted.
The officials added CSE is trying to promote and support their members to continue business as compliant firms.
Market insiders claimed some businessmen, after availing the licences, do not maintain the houses. They treat the licences as "optional businesses". As a result, the stock exchange does not get proper business support.
The CSE recommended a 5% cash dividend to its shareholders for the year that ended on 30 June 2020.
The net profit of the exchange was Tk31.88 crore and earnings per share (EPS) stood at Tk0.50 during the year.
The Chattogram bourse began its journey on 10 October 1995.
