Dhaka Bank and ICB want to be stock market makers
Four companies, including Dhaka Bank Securities Limited and state-owned Investment Corporation Bangladesh Limited, have applied to be market makers in the capital market.
They recently applied to the Bangladesh Securities and Exchange Commission.
In addition to Dhaka Bank Securities and ICB, two Chittagong Stock Exchange brokers, Be Rich Limited and Kabir Securities Limited, have also applied for a market maker license.
Market makers have the right to keep stock prices within a certain range by buying and selling stocks based on company fundamentals.
The Commission defined the rules for market makers in 2000 and amended them on 13 June 2017, in order to encourage good companies to register as market makers.
In accordance with the rules, the minimum capital required to become a market maker is Tk 10 crore.
To be a market maker for more than one listed security, stockbrokers or dealers will need to increase their paid-up capital by Tk 10 crore for each security.
An entity with a capital of Tk 50 crore would be authorized to act as a market marker for three authorized securities.
An entity would be allowed to be a market maker for the five highest permitted securities at a time.
The rule of a market maker is vital in making exchange traded funds functional.
Securities Dealers and Dealers, who are licensed under the 2000 Securities and Exchange Commission Rules (Securities Dealers, Dealers and Authorized Participants), are permitted to act as tenants. Steps.