Amendment to the Bangladesh Securities and Exchange Commission (Margin) Rules, 2025

Registered No. D.A-1

Bangladesh Gazette
Extraordinary Issue
Published by Authority

Monday, August 17, 2026

[ Notices and notifications issued for consideration by private individuals and corporations. ]

Bangladesh Securities and Exchange Commission
Law Division
CMRR Department
Regulatory Section

Notification

Date: 13 August 2026

No. 53.02.0000.201.22.0043.01.109.272.165—Pursuant to the powers conferred under Section 24(1) of the Bangladesh Securities and Exchange Commission Act, 1993 (Act No. 15 of 1993), the Bangladesh Securities and Exchange Commission, after prior publication, hereby amends the Bangladesh Securities and Exchange Commission (Margin) Rules, 2025, as follows:-

(a) In the third line of the Preamble, the word "systematic" shall be replaced by "systemic" after "methodological or organizational risk".

(b) Rule 3 shall be repealed.

(c) Sub-rule (1) of Rule 4 shall be replaced by the following:

“4. Separate bank account for margin financing.—(1) A margin financier shall operate a separate bank account in its own name for the purpose of margin financing for its own clients:

Provided that such bank account shall not be used for any purpose other than margin financing activities:

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Price: 4.00 Taka

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Further provided that no such bank account shall be opened in the name of any branch office or any digital booth:

Further provided that bank accounts already operated in the name of branches or digital booths shall not be operated after February 28, 2027, without the Commission's approval;”

(d) Sub-rule (1) of Rule 5 shall be replaced by the following:

“(1) A client may maintain or open a cash account and a margin account simultaneously with any margin financier;

(e) Sub-rule (5) of Rule 6 shall be replaced by the following:

“(5) The tenure of a margin agreement shall be 01 (one) year, which shall be automatically renewed unless cancelled by either party:

Provided that the margin financier or its relevant client may cancel the margin agreement by providing written notice 15 (fifteen) days in advance;”

(f) At the end of Sub-rule (8) of Rule 6, “;” shall be replaced by “।” and Sub-rule (9) shall be repealed.

(g) Sub-rules (1), (4), and (5) of Rule 7 shall be replaced by the following respectively:

“(1) Before making margin financing to a client's margin account, the margin financier shall ensure that the required initial margin is maintained, or in applicable cases, maintenance margin is maintained for refinancing or enhanced margin financing;

(4) Margin financed funds shall not be used for any purpose other than purchasing margin-eligible securities:

Provided that the client may withdraw funds from the margin account while maintaining the client's equity and margin financing ratio as per the margin agreement;

(5) A margin financier shall not, under any circumstances or in any manner, provide margin financing in excess of the client's equity in the margin account (i.e., where the client's equity to margin financing ratio exceeds 1:1);

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(h) Sub-rules (6) and (7) of Rule 7 shall be repealed.

(i) Sub-rule (9) of Rule 7 shall be replaced by the following:

“(9) A margin financier shall not, under any circumstances, provide margin financing exceeding 04 (four) times its core capital or net worth.”

(j) In Sub-rule (1) of Rule 8, the words “conservative (conservative) policy” and “06 (six)” shall be replaced by “margin financing policy” and “03 (three)” respectively.

(k) In Sub-rule (1) of Rule 8, clause (d), the word “systematic” shall be replaced by the word “systemic”.

(l) In Sub-rule (2) of Rule 8, the word “conservative (conservative)” shall be repealed.

(m) At the beginning of Sub-rule (2) of Rule 8, the words “as described in Rule 7”, “as described in Rule 9”, “as described in Rule 10”, “as described in Rule 11”, “as described in Rule 12”, “as described in Rule 16”, and “as described in Rule 17” shall be inserted.

(n) Sub-rule (3) of Rule 8 shall be replaced by the following:

“(3) A risk management committee consisting of at least two members shall be formed to comply with, implement, execute, and monitor this Rules or the margin financier's own policy:

Provided that such risk management committee shall hold at least 4 (four) meetings per year, and the minutes of such meetings shall be presented at the Board of Directors' meeting;”

(o) Sub-rule (5) of Rule 8 shall be replaced by the following:

“(5) In formulating its margin financing policy, the margin financier shall not formulate a policy by relaxing any provision or condition of these Rules, nor shall it impose any conditions.”

(p) Sub-rules (1), (2), (3), and (4) of Rule 9 shall be replaced by the following:

“(1) The client's equity in the margin account shall not be less than 50% (50%) of the margin financing as a permanent 'maintenance margin';

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(2) If for any reason or at any time a client's equity falls below the percentage described in Sub-rule (1), the margin financier shall immediately issue a margin call to the relevant client to adjust:

Provided that such margin call shall be issued in writing or via message to the relevant client's e-mail address and registered mobile number; and if necessary, the client may be contacted by phone to inform them of such margin call;

(3) If, after 03 (three) trading days following the margin call under Sub-rule (2), a client fails or refrains from depositing the required margin as per Sub-rule (1), or fails or refrains from raising or maintaining their equity to 50% (50%) of the margin financing, the margin financier shall not provide new financing to the relevant client:

Provided that the margin financier may sell the necessary number of securities held in such account to raise or adjust the client's equity to 50% (50%) of the margin financing;

(4) If a client's equity falls below 25% (25%) of the margin financing, the margin financier shall have full discretion to adjust the relevant client's account; and the margin financier shall compulsorily sell the necessary number of securities held in such account without providing any notice to the client:

Provided that in the case of compulsory sale, even if the margin financier issues a sale order, if such sale is not implemented immediately or is delayed, the margin financier shall not be liable for any resulting loss;”

(q) Sub-rules (1) and (2) of Rule 10 shall be replaced by the following:

“(1) A margin financier shall not provide margin financing in any securities other than stocks listed on the stock exchange;

(2) Notwithstanding anything contained in Sub-rule (1), margin financing shall not be provided in securities categorized as ‘G’, ‘N’, and ‘Z’ by the stock exchange, or securities listed on the Stock Exchange's SME, ATB, and OTC platforms or boards.”

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(r) Sub-rule (3) of Rule 10 shall be repealed.

(s) Sub-rules (1) and (2) of Rule 11 shall be replaced by the following:

“(1) If a client's account does not have a minimum investment of 3 (three) lakh Taka in securities listed on the stock exchange at the time of receiving margin financing, margin financing shall not be provided to such account;

(2) If a client purchases any margin-ineligible securities with their own cash in their margin account, such margin-ineligible securities shall not be counted as the client's equity for the purpose of margin financing;

(t) Sub-rule (3) of Rule 11 shall be repealed.

(u) Sub-rules (4) and (5) of Rule 11 shall be replaced by the following:

“(4) If the price-to-earnings (P/E or price to earnings ratio) ratio of securities considered for margin financing exceeds 40 (forty), or if the earnings per share is negative (negative EPS), no margin financing shall be provided to such securities:

Provided that in the case of listed life insurance companies, the price-to-book value (P/B Ratio) ratio shall be considered instead of the price-to-earnings (P/E Ratio) ratio; and if the P/B Ratio exceeds 03 (three) or the net asset value is negative (Negative NAV), no margin financing shall be provided to such securities;

(5) The following method shall be adopted to determine the trailing P/E ratio or P/B Ratio for margin financing:

(a) Trailing P/E ratio = Closing price of securities on the last trading day (/) Sum of earnings per share [EPS (Earning Per Share)] of the last 04 (four) consecutive quarters;

(b) P/B Ratio = Closing price of securities on the last trading day (/) Net asset value per share (NAV per share) of the last audited;

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(c) To facilitate the determination of margin-eligible securities for margin financing, the stock exchange shall regularly publish the P/E Ratio and, where applicable, the P/B Ratio on its website.”

(v) Sub-rule (8) of Rule 11 shall be repealed.

(w) After Sub-rule (1) of Rule 14, “:” shall be replaced by “:” and the following condition shall be appended:

“Provided that the salaries, allowances, and ancillary benefits of research team members shall not be directly linked to the margin financier's trading commission income;”

(x) After Sub-rule (5) of Rule 15, “।” shall be replaced by “:” and the following proviso shall be appended:

“Provided that in introducing Islamic Shariah-based margin financing methods, the margin financier shall have a Shariah Supervisory Board; and such policy shall be recommended by the Shariah Supervisory Board or Shariah Advisor.”

(y) Rule 18 shall be replaced by the following:

“18. Single security exposure limit.—A margin financier shall not provide margin financing in any single security exceeding 20% of its total margin financing (total outstanding of the margin financing).”

(z) Clause (b) of Serial No. 5 of Schedule-K shall be replaced by the following:

“(b) Maintain permanent 'maintenance margin' in the margin account such that the client's equity does not fall below 50% (50%) of the margin financing;”

(aa) Clause (d) of Serial No. 5 of Schedule-K shall be replaced by the following:

“(d) If for any reason a client's equity in the margin account falls below 25% (25%) of the margin financing, to adjust such, without providing any notice, the necessary number of securities held therein shall be compulsorily sold by the 'first party':

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Provided that in the case of compulsory sale, even if the margin financier issues a sale order, if such sale is not implemented immediately or is delayed, the margin financier shall not be liable for any resulting loss;”

(bb) Clause (c) of Serial No. 5 of Schedule-K shall be repealed.

By Order of the Bangladesh Securities and Exchange Commission

Masud Khan
Chairman

Mohammad Abu Yusuf, Deputy Director (Additional Secretary), printed by Bangladesh Government Printing Office, Tejgaon, Dhaka.
Md. Nazrul Islam, Deputy Director (Additional Secretary), published by Bangladesh Forms and Publications Office, Tejgaon, Dhaka. website: www.bgpress.gov.bd