100+ Free BSEC Authorized Representative Practice Questions

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Key Facts: BSEC Authorized Representative Exam

Tk 15,000

Total Fees Required

BSEC & Exchange Rules

21 years

Minimum Age Limit

BSEC Rules 2000

HSC

Min Education

BSEC Registry

T+2 / T+3

Settlement Cycles

DSE Operations

30 days

Cash Dividend Payout Window

BSEC Directives

5 years

AML Record Keeping

BFIU Guidelines

The BSEC Authorized Representative certification requires a mandatory training program and registration with BSEC. It costs approximately Tk 15,000 and has a 100-question assessment. The program validates knowledge of Bangladesh securities laws, trading mechanisms (T+2/T+3 cycles), CDBL depository operations, compliance (AML/CFT reporting), and professional integrity.

Sample BSEC Authorized Representative Practice Questions

Try these sample questions to test your BSEC Authorized Representative exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following bodies is the primary regulator of the capital market in Bangladesh?

A.Bangladesh Bank

B.Dhaka Stock Exchange (DSE)

C.Bangladesh Securities and Exchange Commission (BSEC)

D.Ministry of Finance

Explanation: The Bangladesh Securities and Exchange Commission (BSEC) is the primary regulatory authority for the capital market in Bangladesh, established under the SEC Act, 1993. It regulates stock exchanges, market intermediaries, and the issuance of securities to protect investors. Bangladesh Bank is the central bank regulating the money market, the DSE is a self-regulatory exchange under BSEC oversight, and the Ministry of Finance oversees overall economic policy.

2What is the primary function of the Dhaka Stock Exchange (DSE) in the capital market?

A.To issue credit ratings for listed public companies

B.To provide a marketplace for buying and selling registered securities

C.To act as the monetary policymaker and control interest rates

D.To directly audit the accounts of all listed corporate firms

Explanation: The primary function of the Dhaka Stock Exchange (DSE) is to provide a transparent, regulated, and efficient marketplace for secondary trading of equities, mutual funds, and debt instruments. It enforces listing regulations and trading rules on its members. Credit rating agencies handle ratings, Bangladesh Bank controls monetary policy and interest rates, and independent chartered accountants audit corporate accounts.

3To be classified under Category 'A' on the Dhaka Stock Exchange, what minimum dividend must a listed company declare?

A.5% stock or cash dividend in the preceding calendar year

B.10% or more cash or stock dividend in the preceding year

C.20% dividend in cash only in the preceding financial year

D.Any positive dividend, provided the company has no accumulated losses

Explanation: Under Dhaka Stock Exchange rules, listed companies are categorized based on dividend payout and compliance. Category 'A' comprises companies that hold their Annual General Meeting (AGM) regularly and declare a dividend of 10% or more (cash or stock) in the preceding year. Category 'B' is for companies declaring less than 10% dividend, while non-compliant firms or those declaring no dividends are placed in Category 'Z'.

4Which of the following represents a key distinction between the Money Market and the Capital Market in Bangladesh?

A.The money market deals with equity securities, whereas the capital market deals exclusively with debt instruments

B.The money market is regulated by BSEC, whereas the capital market is regulated by the Insurance Development and Regulatory Authority

C.The money market handles short-term debt instruments with maturities under one year, while the capital market handles long-term equity and debt instruments

D.Money market trades are settled on a T+2 basis, while capital market trades are settled on a T+9 basis

Explanation: The money market deals with short-term, highly liquid debt instruments (like treasury bills, commercial paper, and call money) with maturities of up to one year, and is regulated by Bangladesh Bank. The capital market facilitates the raising of long-term capital through equities, corporate bonds, and mutual funds, and is regulated by the BSEC. Trading settlement cycles also differ significantly between these markets.

5What is a Trading Right Entitlement Certificate (TREC) on a demutualized stock exchange in Bangladesh?

A.A certificate that represents equity ownership shares in the stock exchange itself

B.A license issued by BSEC to directly print paper share certificates

C.A certificate granting the right to execute trades on the exchange without giving ownership shares in the exchange

D.A clearance certificate confirming that a client has paid their margin debt

Explanation: Following the demutualization of stock exchanges in Bangladesh (under the Exchanges Demutualization Act, 2013), ownership of the exchange was separated from trading rights. A Trading Right Entitlement Certificate (TREC) is issued to stockbrokers/dealers, giving them the right to access the exchange's trading platform to execute trades. Holding a TREC does not grant shareholding ownership in the exchange itself.

6What was the main regulatory objective of demutualizing the stock exchanges in Bangladesh?

A.To merge the Dhaka Stock Exchange and Chittagong Stock Exchange into a single national entity

B.To separate the ownership and management of the exchange from the trading rights of brokers

C.To allow commercial banks to freely set interest rates for margin loans without BSEC oversight

D.To convert all listed public companies back into private limited companies

Explanation: Demutualization separates the ownership and management of the stock exchange from the trading rights of its members (brokers and dealers). This reform, completed under the Exchanges Demutualization Act, 2013, aimed to reduce conflicts of interest, improve governance, and convert the exchange into a commercial tax-paying entity, thereby protecting general investor interests.

7Which entity acts as the sole provider of depository services for electronic shares and securities registry in Bangladesh?

A.Investment Corporation of Bangladesh (ICB)

B.Central Depository Bangladesh Limited (CDBL)

C.Dhaka Clearing and Settlement Company Limited

D.Bangladesh Bank Central Clearing House

Explanation: Central Depository Bangladesh Limited (CDBL) is the sole central depository in Bangladesh, incorporated in 2000. It manages the electronic registry, transfer, and settlement of dematerialized (electronic) securities. This eliminates the risks associated with physical share certificates, such as loss, theft, forgery, and delay in settlement.

8What has largely replaced the legacy Over-The-Counter (OTC) market on the Dhaka Stock Exchange for non-compliant companies?

A.The Alternative Trading Board (ATB) and the SME Platform

B.The Government Treasury Bond Market

C.The Call Money Market

D.The Primary Auction Board

Explanation: BSEC phased out the legacy OTC market and introduced the Alternative Trading Board (ATB) and the SME Platform. The ATB provides a trading venue for unlisted companies, open-end mutual funds, and debt securities, while the SME platform accommodates small and medium enterprises. This restructuring provides better transparency and liquidity compared to the old OTC desk.

9Which of the following securities can be traded on the Alternative Trading Board (ATB) of a stock exchange in Bangladesh?

A.Only derivatives and futures contracts

B.Unlisted equity shares, open-end mutual fund units, and debt securities

C.Only primary government treasury bills with maturities under 91 days

D.Foreign exchange currency pairs against the Bangladeshi Taka

Explanation: The Alternative Trading Board (ATB) was established to organize trading in unlisted equities, open-end mutual funds, and debt instruments. This allows investors to buy and sell these securities in a transparent, electronic environment. Derivatives are not currently active, treasury bills are traded on the main board or via BB, and currency pairs are traded in the forex interbank market.

10Which institutions are authorized by Bangladesh Bank to act as Primary Dealers (PD) in the government securities market?

A.All registered stock brokers and authorized representatives in Bangladesh

B.Selected commercial banks and financial institutions authorized to bid in primary auctions of treasury bills and bonds

C.Only microfinance institutions and cooperative societies registered under the Cooperative Societies Act

D.Only foreign portfolio investors with assets exceeding USD 100 million

Explanation: Primary Dealers (PDs) are commercial banks and financial institutions appointed by Bangladesh Bank to act as market makers for government treasury bills and bonds. They are obligated to participate in primary auctions and guarantee underwriting of treasury issuances. They also facilitate secondary market trading of government securities. Individual stockbrokers or representatives are not automatically PDs.

About the BSEC Authorized Representative Exam

The BSEC Authorized Representative Certification is a mandatory qualification for individuals seeking to execute trades on stockbroker workstations in Bangladesh. Administered under the oversight of the Bangladesh Securities and Exchange Commission (BSEC) and conducted by Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE), this certification ensures professionals understand market rules, securities laws, trading mechanisms, and compliance protocols. The training and assessment cover the Securities and Exchange Ordinance 1969, the Money Laundering Prevention Act 2012, and trade matching systems like FlexTrade.

Assessment

100 multiple-choice questions

Time Limit

2 hours

Passing Score

60%

Exam Fee

Tk 15,000 (Tk 5,000 BSEC registration, Tk 10,000 Exchange training) (Bangladesh Securities and Exchange Commission (BSEC) & stock exchanges (DSE / CSE))

BSEC Authorized Representative Exam Content Outline

20%

Securities Laws & Regulations

SEC Act 1993, Securities & Exchange Ordinance 1969, BSEC Broker/Dealer Rules 2000, and corporate rules.

20%

Market Operations & Trading

DSE/CSE trading operations, order types, matching priority, price-time priority matching, circuit breakers, SME, and ATB boards.

15%

Compliance, AML/CFT & Ethics

Money Laundering Prevention Act 2012, E-KYC guidelines, BFIU reporting, and professional code of conduct.

15%

Surveillance & Market Abuse

Insider trading regulations, market manipulation, wash sales, spoofing, and DSE/CSE arbitration.

10%

Financial System & Capital Markets

Money vs capital market differences, depository services (CDBL), and stock exchange demutualization.

10%

Legal Framework & General Acts

Essential contract elements under Contract Act 1872, Negotiable Instruments Act Section 138 (cheque bounce), and Companies Act.

10%

Financial Statement Analysis

Accounting basics, Earnings Per Share (EPS), Price-to-Earnings (P/E) ratio, Net Asset Value (NAV) per share, and liquidity ratios.

How to Pass the BSEC Authorized Representative Exam

What You Need to Know

Passing score: 60%
Assessment: 100 multiple-choice questions
Time limit: 2 hours
Exam fee: Tk 15,000 (Tk 5,000 BSEC registration, Tk 10,000 Exchange training)

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

BSEC Authorized Representative Study Tips from Top Performers

1Study the differences between trading categories (A, B, G, N, Z) and their settlement cycles (T+2 vs. T+3).

2Memorize the key sections of the Securities and Exchange Ordinance 1969, particularly Section 17 regarding fraud and manipulation.

3Understand the penalties for cheque bounce under Section 138 of the Negotiable Instruments Act 1881 and the 30-day notice timeline.

4Review the functions and role of Central Depository Bangladesh Limited (CDBL) and demutualization reforms.

5Familiarize yourself with money laundering offenses, reporting thresholds (Tk 10 lakh for CTR), and BFIU guidelines.

6Practice calculating key financial metrics like Earnings Per Share (EPS), P/E ratio, Net Asset Value (NAV), and Current Ratio.

Frequently Asked Questions

What is the BSEC Authorized Representative certification?

The BSEC Authorized Representative certification is a mandatory qualification in Bangladesh for individuals who want to act as traders and execute buy/sell orders on behalf of clients. It is administered by the Bangladesh Securities and Exchange Commission (BSEC) and stock exchanges (DSE and CSE).

What are the eligibility requirements for the BSEC AR certification?

To become an Authorized Representative, candidates must be at least 21 years old, have a minimum educational qualification of Higher Secondary Certificate (HSC) or equivalent, be associated with or appointed by a registered TREC holder, and complete the mandatory training program.

What is the cost of becoming an Authorized Representative in Bangladesh?

The total cost is typically Tk 15,000. This includes a Tk 10,000 training fee payable to the stock exchange (e.g., DSE or CSE) and a Tk 5,000 registration fee payable to BSEC.

What topics are tested on the BSEC Authorized Representative exam?

The exam and training cover financial system structures, BSEC securities regulations, DSE/CSE trading operations, Contract Act 1872, Negotiable Instruments Act 1881 (cheque bounce laws), Money Laundering Prevention Act 2012, and basic financial analysis.