TRECs 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 company, who acquires the TREC as above, shall require to obtain registration certificate under the Bangladesh Securities and Exchange Commission Act, 1993 or any Rules made thereunder, not later than 12 (twelve) months of such acquisition, and shall require to commence its business within 6 (six) months from the date of registration.
All such transfers will be subject to payment of all outstanding dues to the Exchange, other relevant statutory duties and such conditions or payments as the Board of Directors of CSE or the Commission or any other competent authority may impose from time to time including, but not limited to, transfer fees/charges levied by the Exchange for execution of such transfer. Such transferor will have no outstanding payment to clients and no legal proceedings shall be pending. It is further provided that the requirements of the relevant laws, rules and regulations in respect of such transfer shall also have to be complied with.
All TREC shall become non-transferrable upon completion of 5 (five) years from the date of demutualization.
Within 5 (five) years of demutualization, an exchange may, by adopting special resolution in general meeting, increase the number of trading right entitlement certificates.
Upon completion of 5 (five) years from the date of demutualization, TREC shall be issued to an applicant by the exchange upon fulfilment of the qualifications and criteria prescribed in the scheme.
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.