Problems of Brokerage Houses in Bangladesh
Cost of opening a new brokerage house :
The cost of opening a new brokerage is huge. To become a member of DSE now cost almost Tk. 500 mn excluding the other cost, Deposit to CDBL is 5mn. So despite of the increasing demand of new brokerage houses it is not possible to investor just start one. There is another problem that DSE is not willing to give membership license in near future. Despite of the membership cost it contains a huge portion of money on its setup. So to start a new brokerage one should have Tk. 600mn-650mn which is not easy for a person or company.Problems of Brokerage houses in Bangladesh.
Rules and regulations of DSE :
Brokerage houses are always under close monitoring of DSE and SEC. If DSE sees any unusual activity they directly punished the brokerage houses, they don‟t see who made the mistake is it the trader or client it just fine the house.
Rules and Regulation of CDBL :
Central Depository Of Bangladesh has its own rules and regulation. Every day brokerage has to report to the there daily transaction of there clients. Every day after reviewing the transaction a check has to be written and send CDBL as the howla and laga charge. If there is any problem in the number it will straight fine or close the transaction for several days which will conquer a huge loss for the firm and can create tension among the clients.
Opening a new BO account :
To open a new BO account a person has to go over a few requirements but for a brokerage house it‟s a hustle. Cause if there is any information missed by that particular person the brokerage house has to go for the same procedure again, and the pressure is from both sides. CDBL will charge them that why there is information in the form and the client will complain why the firm didn’t tell them about the mistake in the first place
Problems of Brokerage houses in Bangladesh