Amendment of Securities and Exchange Commission (Merchant Bank and Portfolio Manager) Rules, 2006

Securities and Exchange Commission
Life Insurance Tower (16th, 17th and 21st Floor) 10 Dilkusha B/A, Dhaka-1000, Bangladesh Notification Date, 20 April 2009 No. SECMRRCD/2006-159/Admin-01-39-In exercise of the powers conferred by Section 24 of the Securities and Exchange Act, 1993 (Act No. 15 of 1993) and in accordance with the rules made under sub-section (1) of the said section, after previous publication, the Securities and Exchange Commission (Merchant Bank and Portfolio Manager) Rules, 1996 are hereby further amended as follows:

In the said Rules,-

1. The last paragraph of sub-paragraph (i) of clause (a) of sub-rule (1) of Rule 3k shall be replaced by the following paragraph, namely:-

"Further provided that, no issuer or merchant bank shall at any time manage deposits exceeding five times its capital, i.e., paid-up capital and free reserves (excluding revaluation reserve), and portfolio managers and merchant banks (excluding banks and financial institutions) shall at any time manage portfolio funds exceeding five times their capital, i.e., paid-up capital and free reserves (excluding revaluation reserve)."

2. Table 11 of Form 'B' of sub-rule (3) of Rule 7 shall be replaced by the following Table 11, namely:-

"11. The Issuer Manager/Portfolio Manager/Merchant Bank shall perform the following duties applicable to them, namely:-

(a) The Issuer Manager shall submit at least one (1) public issue prospectus to the Commission for listing in the capital market within two consecutive English calendar years (to be calculated from 1st January 2010).

(b) The Portfolio Manager shall establish portfolios for at least 5 (five) new clients annually in addition to its own portfolio.

(c) The Merchant Bank shall establish portfolios for at least 5 (five) new clients annually in addition to its own portfolio and submit at least one (1) public issue prospectus to the Commission for listing in the capital market within two consecutive English calendar years (to be calculated from 1st January 2010)."

3. The proviso of clause (a) of sub-rule (1) of Rule 16k shall be replaced by the following provision, namely:-

"Provided that, portfolio managers (excluding banks and financial institutions) shall at any time manage portfolio funds exceeding five times their capital, i.e., paid-up capital and free reserves (excluding revaluation reserve)."

By order of the Securities and Exchange Commission Mansur Alam Chairman.