Dhaka, Bangladesh (BBN)- Mutual Trust Bank (MTB) Securities Limited launched brokerage operations in the capital, Dhaka on Tuesday to provide quality services to the stock market investors.
The brokerage house began as a subsidiary of the MTB Limited, as per regulatory requirements.
Under the existing regulations, the financial institutions, including banks, that have brokerage and merchant banking divisions, will have to form a subsidiary company to run the stock business within November 30 this year,
Syed Manzur Elahi, founder chairman of MTB, formally launched the operations at a function. MTB Managing Director Anis A Khan, Dhaka Stock Exchange President Shakil Rizvi and Chittagong Stock Exchange President Fakhor Uddin Ali Ahmed were also present.
Noted entrepreneur Mr. Elahi put accent on framing a new law keeping the 'exit policy' for the investors who invest in errant companies listed on the bourses.
"Many countries have such law, a minimum support for the shareholders of errant companies, but we don't have," he said, adding that creation of Z-category and launching of OTC market have failed to protect the interest of investors as some companies resort to the closure of the entities depriving the shareholders of a minimum return.
"The government must strongly consider the issue to sustain the growth of the stock market," Mr Elahi noted.
Mr Anis A Khan said that the new company will bring more professional efficiency in the stock market operations of MTB.
DSE president Shakil Rizvi and CSE president Fakhor Uddin welcomed the launching of MTB Securities and said that the stock market will be benefited to a large extent through the launching of the new company.
BBN/SSR/AD-20Oct10-12:45 am (BST)