TREC holders using multiple back-office software to face action

The Bangladesh Securities and Exchange Commission (BSEC) has directed both stock exchanges in the country to take action against TREC (trading right entitlement certificate) holders who use multiple back-office software.

A letter in this regard was sent from BSEC on Sunday to the managing directors of both the stock exchanges.

The letter called for action by June 30. Besides, it has been asked to inform the commission of such TREC holders every month.

The regulator’s decision came after Tamha Securities was recently caught cheating investors through its use of multiple back-office software.

The brokerage house authorities embezzled money from investors through multiple back-office software.

The letter asked the stock exchanges to take explanations from TREC holders who use multiple back-office software. The exchange authorities have also been asked to investigate the companies holding those TREC holders.

Meanwhile, two stock exchanges have been instructed to provide a list of software providers. Institutions that provide software to TREC holders will seek stock exchange approval prior to delivery. The stock exchange authorities will also inform the commission about these activities.

The BSEC’s letter further asked to formulate a stock exchange policy on hardware and software installation and to inform the TREC holders about it.

The stock exchange has also been asked to prepare network installation and security policies.

In addition, the letter asked both the stock exchanges to formulate a backup policy for storing the day-to-day transactions of the TREC holders and merchant banks.