Regulatory Alerts2012-11-20
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DFIM Circular No. 08: Re-fixation of highest rate/limit of margin loans provided by subsidiaries of Financial Institutions formed for Merchant Banking/Brokerage activities
The document instructs the Chief Executive/Managing Directors of all financial institutions operating in Bangladesh to ensure that their subsidiaries established for merchant banking or brokerage activities comply with the Securities and Exchange Commission's orders dated September 30, 2012. These orders re-fix the maximum rate or limit of margin loans that stock exchange members may provide to customers. The circular mandates the proper implementation of these specific regulatory directions regarding margin loan parameters.
DFIM Circular No. 08 Date: 20 November 2012 6 Agrahayan, 1419
To, Chief Executive/Managing Director, All Financial Institutions operating in Bangladesh.
Dear Sir,
Re: Re-fixation of the highest rate/limit of margin loans provided by subsidiary companies formed for the purpose of conducting Merchant Banking/Brokerage programs.
Through their Orders No. SEC/CMRRRC/2009-193/135 and SEC/CMRRRC/2009-193/136 dated September 30, 2012, the Securities and Exchange Commission (SEC) has re-fixed the maximum rate/limit of margin loans that stock exchange members may provide to customers. In this regard, you are advised to properly comply with the aforementioned instructions of the SEC regarding the margin loans that your subsidiary companies, formed for the purpose of conducting Merchant Banking/Brokerage programs, may provide to customers.
Please acknowledge receipt.
Yours faithfully,
(A. K. M. Amzad Hossain) Deputy General Manager Phone: 9530249
DFIM: B: Fin. Reg. Dept. www.dbd.gov.bd www.finreg.gov.bd
Financial Institutions and Markets Department Head Office Dhaka. Bangladesh Bank
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