BANGLADESH BANK Head Office Post Box No.-325 Dhaka. DOS Circular letter No.-07 Date: 25/02/2014 Chief Executives All Scheduled banks in Bangladesh Consolidated Capital market investment limit for the scheduled banks Pursuant to section 26KA of ' e¨vsK-†Kv¤úvbx AvBb, 1991 (2013 ch©šÍ ms‡kvwaZ)', DOS Circular No.-02/2013 has been issued to clarify issues related to individual and aggregate limits of investment in shares of any company or companies by banks. International best practice requires that capital adequacy, risk measurement, and management be done on a consolidated basis. In order to strengthen the capital base of the banks in Bangladesh by keeping their capital market risk within acceptable limit, the following additional instructions are issued:

1. (1). The market value of total investment of a banking company in capital market on consolidated basis shall not exceed 50% of the sum of its consolidated paid up capital, balance in share premium account, statutory reserve and retained earnings as stated in the latest audited financial statements. While computing total capital market investment on consolidated basis, the following components shall have to be considered: a) all components mentioned in Para 2(1) of DOS Circular No.-02/2013 except the inter￾company (parent bank to subsidiary/subsidiaries or vice versa) transactions; b) subscription by the subsidiary or subsidiaries of the bank to any fund intended to invest in the capital market; c) market value of all types of shares, debentures, corporate bonds, mutual fund units and any other capital market leaning securities held by the subsidiary or subsidiaries of the bank; d) margin loan (outstanding) provided to the customers by the subsidiary or subsidiaries of the bank; e) bridge loans provided to companies by the subsidiary or subsidiaries of the bank against expected equity flows/issues. (2). All components mentioned in Para 2(2) of DOS Circular No.-02/2013 shall be excluded while computing total capital market investment on consolidated basis.
2. Banks having total capital market investment above the consolidated limit set in Para 1(1) shall have to bring it down gradually within July 21, 2016.
3. Banks shall submit a report (both soft and hard copy) of their month end solo and consolidated basis position regarding capital market investment in the prescribed formats to Department of Off-site Supervision (DOS) within the 10th of the following month. The formats provided with DOS Circular No.-02/2013 are suitably revised to enable the banks to report both positions in one format. The soft copy of the formats can be collected from DOS. P.T.O. Website:www.bb.org.bd Department of Off-site Supervision

-02- This shall come into effect immediately and the formats provided with DOS Circular No.- 02/2013 shall be considered revised. Please acknowledge receipt. Sincerely yours, Sd./- (S. M. Rabiul Hassan) General Manager Phone: 9530093

(dd/MM/yyyy) TICM: SOLO % of Investment in Capital Market to Total pescribed Capital Components Amount Paid up Statutory Reserve Retained Earnings Share Premium Total a) - b) - c) - d) - e) - f) - g) - h)

TICM: CONSOLIDATED % of Investment in Capital Market to Total pescribed Capital Components Amount Paid up Statutory Reserve Retained Earnings Share Premium Total 1 a) - b) - c) - d) - e) - f) - 2 a) - b) - c) - d) Margin Loans -

e) -

Signature Name Designation ID no. Phone Cell no. Email Fax no. Less Equity investment in subsidiaries other than Merchant bank and/Brokerage Subsidiaries Portfolio:Bank Less placement in subsidiaries Portfolio:Subsidiary/subsidiaries Shares Mutual Fund/Fund Statement Regarding Total Investment in Capital Market (TICM) (To be submitted within the10th of the following month) Shares Name of the bank Loan to own subsidiary/subsidiaries Reporting date Market Value of Investment In Capital Market (in crore Tk.) Equity Investment in Merchant bank and/Brokerage Subsidiaries Mutual Fund/Fund Total of Capital Components (in crore Tk.) as stated in the last audited balanceSheet Components Loan to others for merchant banking and brokerage activities

Loan to Stock Dealer Bridge Loans Market Value of Investment In Capital Market (in crore Tk.) Total of Consolidated Capital Components (in crore Tk.) as stated in the last audited balanceSheet Components Loans: Certified that the above information is correct. Total Bank has no exposure in capital market

Bonds/Debentures Shares Placement/others Bank has no exposure in capital market Total Mutual Fund/Fund Bonds/Debentures Loan to others for merchant banking and brokerage activities Loan to Stock Dealer Placement/others Bonds/Debentures Placement/others

BANK NAME: DATE: (dd/MM/yyyy) Paid up Statutory Reserve Retained earnings Share premium 1 2 3 4 5 6 7 8 9 10 11 12=col.9-col.11 13=col.10/col.1 14=col.10/col.6 15=col.10/col.(1+2+3+4)

• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00%
• 0.00% 0.00% 0.00% Sub-total - - - - Increase/ Decrease INVESTMENT IN SHARES (Parent Bank) Name of the company (as appeared in the ticker of the stock exchange where applicable) Paid up capital of the company No. of Shares issued Own Portfolio Total no. of shares held under own portfolio Total no. of shares held under own portfolio at the last reporting date (Fig. In TK.) % of market value of shares to total capital components of the banking company % of market value of shares to paid up capital of the banking company

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Total Market value Face Value (Per unit) Capital components of the bank co. as par last audited balance sheet % of market value of shares to paid up capital of the company

BANK NAME: DATE: (dd/MM/yyyy) (Fig. In TK.) 1 2 3 4 5 6 7=col.4-col.6

Sub-total - - - - INVESTMENT IN MUTUAL FUND/SUBSCRIPTION IN ANY FUND FOR CM (Parent Bank) Total no. of units held under own portfolio at the last reporting date Increase/ Decrease Name of the Mutual Fund (as appeared in the ticker of the stock exchange)/Name of the Fund No. of units issued Face Value (Per unit) Total no. of units held under own portfolio Total Market value

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Own Portfolio

BANK NAME: DATE: (dd/MM/yyyy) (Fig. In TK.) (Fig. In TK.) Name of the Bond/Debenture Face Value Market value Total Market value of Bond/Debenture Total Capital of the Bank % of the value of Bond/ Debenture to Total Capital 1 2 3 1 2 3 Sub-total 0.000.00% INVESTMENT IN BOND AND DEBENTURE (Parent Bank)

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BANK NAME: DATE: (dd/MM/yyyy) (Fig. in TK.) #1 Sl. No Name Outstanding Loan/Limit whichever is higher Total Capital of the bank as on the last base date Outstanding Loan % of Outstanding loan to Total Capital 1 2 3 4 5 6=col.5/col.4 Total - #2 Sl. No Name Outstanding Loan/Limit whichever is higher Total Capital of the bank as on the last base date Outstanding Loan % of Outstanding loan to Total Capital 1 2 3 4 5 6=col.5/col.4 Total - #3 Sl. No Name Outstanding Loan/Limit whichever is higher Member of (name of the stock exchange, eg. DSE/CSE etc.) Outstanding Loan Membership No. 1 2 3 4 5 5 Total - #4 Sl. No Name Balance 1 2 3 Total - #5 Sl. No Name Balance 1 2 3 Total - Loan to Stock dealer:

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INVESTMENT IN CAPITAL MARKET : LOANS/ADVANCES AND EQUITY INVESTMENT IN SUBSIDIARY (Parent Bank) Balance Kept/Placed with any company involved with Capital Market Activities Exposure in capital market Loan to own subsidiary/subsidiaries established for Merchant banking or brokerage activities: Loan to others for Merchant banking or brokerage activities: Equity Investment in Subsidiary/Subsidiaries established for Capital Market activities

BANK NAME: DATE: (dd/MM/yyyy) (Fig. In TK.) 5 6 7 8 9 10 11 12=col.9-col.11

Sub-total - - - - Total no. of shares held under own portfolio Total Market value Total no. of shares held under own portfolio at the last reporting date Own Portfolio Increase/ Decrease INVESTMENT IN SHARES (by Subsidiary Company/companies) Name of the company (as appeared in the ticker of the stock exchange where applicable) Paid up capital of the company No. of Shares issued Face Value (Per unit)

BANK NAME: DATE: (dd/MM/yyyy) (Fig. In TK.) 1 2 3 4 5 6 7=col.4-col.6

Sub-total - - - - Total Market value Total no. of units held under own portfolio at the last reporting date Increase/ Decrease

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INVESTMENT IN MUTUAL FUND/SUBSCRIPTION IN ANY FUND FOR CM (by Subsidiary Company/Companies) Name of the Mutual Fund (as appeared in the ticker of the stock exchange)/Name of the Fund No. of units issued Face Value (Per unit) Own Portfolio Total no. of units held under own portfolio

INVESTMENT IN BOND AND DEBENTURE (by Subsidiary Company/Companies) BANK NAME: DATE: (dd/MM/yyyy) (Fig. In TK.) Name of the Bond/Debenture Face Value Market value 1 2 3 Sub-total 0.000

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DATE: (dd/MM/yyyy) (Fig. in TK.) #1 Sl. No Name Outstanding Margin Loan 1 2 3 Oustanding Margin Loan to customers Total - #2 Sl. No Name Outstanding Loan/Limit whichever is higher 1 2 3 Total - #3 Sl. No Name Balance 1 2 3 Total - LOANS,EQUITY INVESTMENT,PLACEMENT and UNDERWRITING COMMITMENTS (by Subsidiary Company/Companies) Balance Kept/Placed with any company involved with Capital Market Activities

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Margin Loan to customers: Bridge Loans: BANK NAME: