After around seven years of enactment of Exchange Demutualization Act 2013, Bangladesh Securities and Exchange Commission (Trading Right Entitlement Certificate) Rules 2020 was published in the Gazette on 12th November, 2020.

The Rules came into effect immediately.

The Rules deal with matter pertaining to terms and conditions for holding a TREC.

Rule 3 describes the eligibilities of a TREC Holder. For instance, under the Rules no one is eligible to receive a TREC unless it is a company or institution having minimum BDT.5.00 crore paid up capital.

Among other conditions, if a company or any of its directors have been convicted under criminal law, it will not qualify to be a TREC Holder.

Subsequent Rules describes procedures of application for TREC, payment of application fee, Renewal fee etc.

Under the Rules, TREC is not transferrable.

Rule 7 describes the cases when the TREC can be cancelled or suspended. If a Stock Broker or Dealer fails to commence its business within 6 months of receiving the TREC, the TREC shall be treated as cancelled. TREC may also be cancelled in cases when the TREC holder loses its eligibilities as described in Rule 3.

The Rules also contain provision relating to issuing of duplicate TREC, creation of charge on the TREC, compliance in case of changes in the Management.