Securities and Exchange Commission (Merchant Banker and Portfolio Manager) Rules, 1996 (Amendment)

1
Notification
April 16, 2012
No.- SEC/CMRR/CD/2001-50/127/Admin/-------------: In exercise of the powers conferred by Section 24(1) of the Securities and Exchange Commission Act, 1993 (Act No. 15 of 1993), and after previous publication, the Securities and Exchange Commission hereby amends the Securities and Exchange Commission (Merchant Banker and Portfolio Manager) Rules, 1996, as follows:

In the aforementioned Rules:

1. Serial number (b) and the terms of Rule 3(k)(1) shall be replaced by the following:

"(b) Its paid-up capital is less than 25 (twenty-five) billion Taka and its subordinated net assets are less than 50 (fifty) percent of the paid-up capital:
Provided that,
(a) If any applicant wishes to engage in issue management other than underwriting and portfolio management, it shall have a minimum paid-up capital of 2.50 (two point five) billion Taka, and in the case of a certified issue manager, the paid-up capital shall be increased to 2.50 (two point five) billion Taka within 1 (one) year from the date of publication of this amendment's notification in the Gazette; (b) If any applicant wishes to engage in underwriting, it shall have a minimum paid-up capital of 12.50 (twelve point five) billion Taka, and in the case of a certified underwriter, the paid-up capital shall be increased to 12.50 (twelve point five) billion Taka within 1 (one) year from the date of publication of this amendment's notification in the Gazette; (c) If any applicant wishes to engage in portfolio management, issue management, and underwriting, it shall have a minimum paid-up capital of 25 (twenty-five) billion Taka, and in the case of a certified issue manager, underwriter, and portfolio manager, the paid-up capital shall be increased to 25 (twenty-five) billion Taka within 1 (one) year from the date of publication of this amendment's notification in the Gazette; Further provided that, an underwriter or merchant banker shall not at any time underwrite more than five times its capital, i.e., paid-up capital and free reserves (excluding statutory reserves), and a portfolio manager or merchant banker (excluding banks and financial institutions) shall not at any time manage portfolio funds more than five times its capital, i.e., paid-up capital and free reserves (excluding statutory reserves).".

2. Serial number (b) of Rule 16(k)(1) shall be replaced by the following:

"(b) Its paid-up capital is less than 12.50 (twelve point five) billion Taka and its subordinated net assets are less than 50 (fifty) percent of the paid-up capital, and in the case of a certified portfolio manager, the paid-up capital shall be increased to 12.50 (twelve point five) billion Taka within 1 (one) year from the date of publication of this amendment's notification in the Gazette:
Provided that, a portfolio manager (excluding banks and financial institutions) shall not at any time manage portfolio funds more than five times its capital, i.e., paid-up capital and free reserves (excluding statutory reserves).".

By Order of the Securities and Exchange Commission, Professor Dr. M. Khairul Hossain Chairman.