The DSE Brokers Association of Bangladesh (DBA) has urged the government to put the formulation of a Stock Dealer, Stock Broker and Authorized Representative Regulations, 2023 on hold until June next year.

The appeal came at a discussion among stock brokers and dealers organised by the association on the Dhaka Stock Exchange (DSE) premises in Nikunja yesterday.

In a press release, the association said representatives from 209 stock brokerage firms were present in the event.

The Bangladesh Securities and Exchange Commission (BSEC) recently published a draft of the regulation titled "Bangladesh Securities and Exchange Commission (Stock Dealer, Stock Broker and Authorised Representative) regulations, 2023" on its website seeking stakeholders' feedback within November 9.

Stockbrokers expressed concern over many provisions of the regulations in the meeting and said the regulator should seriously take into consideration the opinions of stakeholders, according to the press release.

The DBA requested the stock market regulator to put the regulation's formulation process on hold for the next seven months considering the need for further analysis, ongoing political instability and upcoming national elections.

The DBA has several observations, including to reduce the amount of paid-up capital required to open a brokerage firm.

Moreover, it sought to reduce the amount of net worth or readily available paid-up capital from 75 percent to 50 percent.

The stock dealers are also required to invest at least 75 percent of their paid-up capital, something the brokers requested to withdraw.

The DBA opposed a new provision allowing keeping a stock investor in the board of stock brokerage firms, saying it was contradictory to the company act.

According to the draft regulations, stock brokers and dealers are required to renew their certificate every three years and the renewal fee is Tk 1 lakh.

The brokers' organisation urged to extend the period to five years and cancel the renewal fee.

Another provision says the shareholders of stock brokerage firms and stock dealers will have to take approval from the BSEC if they want to sell or transfer shares.

The DBA opposed it, saying this provision was not applicable even for listed companies, and requested to keep an option to simply inform the BSEC and the stock exchanges instead.