Dhaka, Bangladesh (BBN) – DSE Brokers’ Association of Bangladesh on Wednesday formally started its journey that will work to bring stability and vibrancy to the ailing market and create awareness among investors.
The announcement came at a press briefing on Wednesday the DSE premises after the association got its registration from the Office of the Registrar of Joint Stock Companies and Firms on August 16.
The DSE earlier was a mutual exchange and the brokers were able to raise their opinion through the board.
After completion of demutualisation process, DSE management was separated from the board and brokers’ participation in the board was also squeezed as majority directors are independent.
Under such a situation, brokers’ association on Wednesday emerged like the associations of other demutualised stock exchanges across the world.
Ahsanul Islam, president of the platform, expressed his immediate reaction to the BBN saying: “One of our purposes is to create awareness among the investors through various programmes across the country, as a lack of awareness is a major problem.”
Many people invest in the market without adequate knowledge and then lose their money, he said. “It’s not our responsibility to protect their investment, but it’s our duty to make them aware.”
The association, which will have a research wing, will prepare recommendations on how to further improve the market and put those forward to the bourse’s board, said Islam, also a former president of the DSE.
Islam, also a former DSE president, said their association would promote cooperation amongst in businesses so that they work together for the development of economic and industrial ties.
The Dhaka bourse has 250 stockbrokers or trading right entitlement certificate (TREC) holders who have around 1,000 branches across the country.
Md Zahirul Islam, a director of the association, said they will negotiate with the government, Bangladesh Securities and Exchange Commission, the central bank and other regulatory authorities on market related issues.
He also urged the stock market regulator to engage the stockbrokers in the process of initial public offerings to help develop the primary market.
The other members of 15-member are directors of DSE Brokers Association are: Kazi Firoz Rashid, Abdul Haque, Md. Mizanur Rahman Khan, Md. Hanif Bhuiya, Minhaz Mannan Emon, Shahed Abdul Khaleque, Ms. Khugesta Nur-E-Naharin, Sharif Ataur Rahman, Mostaque Ahmed Sadeque, M. Moazzam Hossain, A.S. Shahudul Huque Bulbul, Mahbubur Rahman, Khwaja Asif Ahmed and Md. Zahirul Islam.