The TREC holder shall comply with all securities related Ordinance, Act, Rules, Order, Directive and Conditions of Bangladesh Securities and Exchange Commission and Regulations of Chittagong Stock Exchange Ltd.
An initial shareholder who is issued with a trading right entitlement certificate, if not already registered under the Bangladesh Securities and Exchange Commission Act, 1993 or any rules made there under, shall have to obtain registration certificate in accordance with therequirements of the said Act or Rules within 3 (three) years from the date of demutualization, and commence business within 6 (six) months from the date of receiving such registration provided under section 16(1) of the এক্সচেঞ্জেস ডিমিউচ্যুয়ালাইজেশন আইন, ২০১৩ (Exchanges Demutualization Act,2013).
TREC issued to the initial shareholders can be transferred once within 5 years from the demutualization date to any eligible entity in accordance with the এক্সচেঞ্জেস ডিমিউচ্যুয়ালাইজেশন আইন, ২০১৩ (Exchanges Demutualization Act, 2013) and payment of fees as may be determined with the Commission’s approval from time to time.
Any TREC Holder desiring to transfer its TREC subject to requirements of the এক্সচেঞ্জেস ডিমিউচ্যুয়ালাইজেশন আইন, ২০১৩ (Exchanges Demutualization Act, 2013)must submit to the Exchange a written application, signed by both the transferor and transferee, in such form and accompanied with such documents as may be prescribed by the Exchange.
Any entity that acquires the TREC as above shall be required to obtain registration certificate under the Bangladesh Securities and Exchange Commission Act, 1993 or any Rules made there under, not later than 12 (twelve) months of such acquisition, and shall be required to commence its business within 6 (six) months from the date of registration.
All TREC shall become non-transferable upon completion of 5 (five) years from the date of demutualization.
Every TREC Holder shall be liable to pay such fees for obtaining the certificates and renewal thereof as may be determined by the Exchange from time to time.
If any company or initial shareholder fails to obtain registration certificate or to commence business within the time as stipulated above, the respective TREC shall become cancelled as provided under section 16(8) of the এক্সচেঞ্জেস ডিমিউচ্যুয়ালাইজেশন আইন, ২০১৩ (Exchanges Demutualization Act, 2013).
Cancellation of TREC: A TREC may be cancelled by the Exchange on the following grounds:
If a TREC holder is found to be involved in any activity prohibited under any securities law;
If a cancellation order is issued by BSEC or any other competent authority or any court of justice;
If the TREC holder failed to comply with the requirements of the CSE (Settlement of Transactions) Regulations, 1998;
If the TREC holder fails to comply with the requirements of the CSE (Member's Margin) Regulations, 1998;
If the TREC holder is found to have acted in violation of these Regulations including change in the shareholding structure resulting in change of control without prior approval from the Exchange;
If the TREC Holder fails to commence broking business within 6 (six) months of receipt of the brokerage registration from BSEC:
Provided that no TREC shall be cancelled without giving the TREC holder an opportunity of hearing.
No person shall hold more than one TREC of the Exchange at a time.
The TREC issued by the Exchange, shall not be pledged or charged with any other encumbrance.
Any change in the senior management including compliance officer of a TREC Holder shall be notified to the Exchange within 3 (three) working days.
Any change in the shareholding structure resulting in change of control, directly or indirectly, shall require prior approval from the Exchange.
The management of the Exchange shall notify its decision under sub-regulation (4) within 5 (five) working days of receipt of application from TREC Holder, non-response from the management shall deem to be same as approval.
Any transfer of shares of any TREC holder falling under sub-regulation (4) without the approval of the Exchange shall be void.
A TREC holder shall at all times comply with the Act and Rules issued by the BSEC and with Regulations issued by the Exchange.
A TREC holder shall be responsible for all acts done, or omitted to be done, by its directors or employees or agents in the name of the TREC holder.
A TREC holder shall ensure that all its employees are suitably and adequately trained, qualified as necessary and properly supervised and, where appropriate, authorized.
A TREC holder shall ensure at all times on a continuing basis that it complies with the requirements set out in Regulation 5.