The issuance of Trading Right Entitlement Certificate (TREC) in Bangladesh is governed by key legal frameworks. The TREC Regulations 2013 outline procedures and obligations for TREC holders. The Demutualization Act 2013 addresses stock exchange transformation and TREC allocation. The Securities & Exchange Ordinance, 1969 provides foundational rules for securities regulation. The Bangladesh Securities and Exchange Commission Act, 1993 establishes the regulatory authority overseeing TREC issuance and market operations. Together, these laws ensure transparency and compliance in Bangladesh’s securities market.
Issuing authority
Name : Dhaka Stock Exchange Ltd. (DSE)
Address: Stock Exchange Building, 9/F, Motijheel C/A, Dhaka-1000.
Website: www.dsebd.org
Required list of all documents
- Duly filled in TREC Application Form [Original copy]
- Trading Right Entitlement Certificate (TREC) Issuance Fee [An Account Payee Cheque of BDT 1,00,000/- in favor of Dhaka Stock Exchange Limited]
- Extract of the minutes of Board Meeting of applicant company regarding issuance of TREC [Photocopy duly attested]
- Latest Form- XII (Particulars of Directors) of applicant company [Certified by RJSC, duly attested]
- Latest Schedule-X (Summary of Share Capital) of applicant company [Certified by RJSC, duly attested]
- Form-XV (Return of Allotment) of applicant company (if any) [Certified by RJSC, duly attested]
- Form-VI of applicant company [Certified by RJSC, duly attested]
- Duly signed in notarized Affidavits with Notarial Certificate in original on Non-Judicial Stamp of BDT. 200/- of all Directors of the applicant company [As per the latest Form-XII (Particulars of Directors)]
- Duly signed in Guarantee & Undertaking in original on Non-Judicial Stamp of BDT. 300/- of all Directors of the applicant company [As per the latest Form-XII (Particulars of Directors)]
- Duly signed in Bio-data along with two copies of recent passport size color photograph of all Directors of the applicant company [As per the latest Form-XII (Particulars of Directors)]
- Duly filled in CIB (Credit Information Bureau) Inquiry Form of all Directors of the applicant company [3 sets for each Director of the applicant company in original]
- e-TIN Certificate & National ID card of all Directors of the applicant company [Photocopy duly attested]
- Memorandum & Articles of Association of the applicant company [2 copies in original certified by RJSC]
- Certificate of Incorporation of the applicant company [Photocopy duly attested]
- Latest Audited Financial Statements of the applicant company in original. [2 copies duly signed with seal by any 2 Directors including Managing Director, if any]
- Declaration of the company having adequate professional management including human resources, information technology infrastructure and financial capability [Original copy]
- Photocopy of the extract of the minutes of Board Meeting of the applicant company regarding nomination of TREC Holder Representative and signing authority, notarized Affidavits with Notarial Certificate in original on Non-Judicial Stamp of BDT. 200/-, Guarantee & Undertaking in original on Non-Judicial Stamp of Tk. 300/- [With duly signed in CV in Original and Photocopy of National ID card of the TREC Holder Representative of the applicant company being duly attested]
- Photocopy of the extract of the minutes of Board Meeting regarding appointment of Compliance Authority along with his/her appointment letter With duly signed in CV in Original and Photocopy of National ID card of the TREC Holder Representative of the applicant company being duly attested]
- Declaration regarding loan status, subsidiary status of the TREC Holder company and its sister concern, if any [Original copy]
- e-TIN Certificate of the applicant company [Photocopy & duly attested]
- Duly renewed Trade License of the applicant company [Photocopy & duly attested]
- Bank Account Certificate of the applicant company [Original copy]
- Declaration regarding experience of TREC Holder Representative in securities business not less than two years of the applicant company [Original copy]
- Vendor’s Agreement on Non-Judicial Stamp of BDT. 300/- [Original copy]
- Photocopy of approval letter of the concerned regulatory authority of the parent company to form subsidiary company if the applicant company is a subsidiary company [Photocopy & duly attested]
- Photocopy of extract of the minutes of Board Meeting of the parent company regarding formation of the applicant company as its subsidiary company [Photocopy & duly attested]
- Latest Form- XII (Particulars of Directors) of the parent company of applicant company [Certified by RJSC, duly attested]
- Declaration of applicant company regarding formation of its Board of Directors in compliance with the rule “5Ka” of the Securities and Exchange Commission (Stock-Dealer, Stock-Broker and Authorized Representative) Rules, 2000 [Original copy]
Step by step all process
Step 1 Application & Documents submission: The applicant company collects the TREC “Application Form” from the DSE office and submits the completed form along with required documents. DSE office receives the application and conducts an initial review of the submitted documents. Additional documents may be requested if necessary to enhance the credibility of the information.
Step 4: Verification and Further Documentation: DSE office verifies the submitted application and documents. If required, additional documents that further validate the information may be requested.
Step 6 Decision Making & Issuance: Based on the submitted and verified documents, DSE office decides whether to issue the TREC to the applicant company. If approved, DSE office issues the TREC to the applicant company. If the application is rejected, a letter is issued explaining the reasons for rejection.
Fee schedule
Trading Right Entitlement Certificate (TREC) Issuance Fee: An Account Payee Cheque of BDT 1, 00,0007- in favor of Dhaka Stock Exchange Limited.
Official time limit
Time may vary
Actual time limit
25 days
Renewal process
Required list of all documents
- A complete Application [Copy of the Original]
- An Account Payee Cheque of BDT 50,0007- in favor of Dhaka Stock Exchange Limited as fee for renewal of TREC [Copy of the Original]
Step by step all process
Step 1: Submission of Renewal Application and Payment: The DSE office issues or emails a reminder letter to the TREC Holder company for renewal of its TREC. The TREC Holder company then submits an application along with an Account Payee Cheque of BDT 50,000/- in favor of Dhaka Stock Exchange Limited for renewal of its TREC.
Step 2: Verification of Documents: After receiving the renewal application and payment, the DSE office verifies the submitted documents and requests corrected documents if any deficiencies are found.
Step 3: Decision Making Process: Based on the verified documents, the DSE office decides whether to renew the TREC of the applicant company or not.
Step 4: Renewal Confirmation or Rejection Notification: If the application is approved, the DSE office issues a renewal confirmation letter to the applicant company. If the application is rejected, a letter is issued to the applicant company stating the reasons for rejection.
Fee schedule
Trading Right Entitlement Certificate (TREC) Renewal Fee: An Account Payee Cheque of BDT 50,000/-in favor of Dhaka Stock Exchange Limited.
Official time limit
Time may vary
Actual time limit