Directive on extension of time to fulfill the requirement of maintenance of minimum Net Worth by Merchant Bankers

Bangladesh Securities and Exchange Commission

Directive
Date: November 13, 2022

No. BSSEC/CMARRCDI/2009-193/48:- Whereas the Bangladesh Securities and Exchange Commission (hereinafter referred to as the "Commission") has been informed that certain Merchant Bankers or Portfolio Managers registered in the capital market have failed to maintain permanent Net Worth in accordance with clause (b) of sub-rule (1) of Rule 3K of the Securities and Exchange Commission (Merchant Bankers and Portfolio Managers) Rules, 1996, framed under the Securities and Exchange Commission Act, 1993 (hereinafter referred to as the "Rules"), and are thus considered ineligible for registration approval;

Whereas, in the larger interest of the capital market and to ensure the continuity of the operations of the concerned institutions, subject to certain conditions, to continue registration and to take steps to make up the capital deficit, the Commission, under the powers conferred under Section 20A of the Securities and Exchange Ordinance, 1969, has issued the following directives, which shall come into force immediately:-

1. Merchant Bankers or Portfolio Managers who have failed to maintain permanent Net Worth in accordance with clause (b) of sub-rule (1) of Rule 3K of the Rules are hereby granted time until December 31, 2023, to comply with the relevant provisions:

Provided that, if any Merchant Banker or Portfolio Manager fails to maintain permanent Net Worth in accordance with the relevant Rules by the said date, necessary action for cancellation of registration will be taken in accordance with the Rules, and simultaneously, such Merchant Banker or Portfolio Manager will be deprived of all existing quota benefits in the capital market effective from January 01, 2024.

2. Other conditions regarding quota benefits in the capital market previously issued by the Commission shall be complied with by the respective Merchant Banker.

By Order of the
Bangladesh Securities and Exchange Commission,

(Signature)
Professor Shibly Rubaiyat-ul-Islam
Chairman.

Securities Commission Building, E-6/C Agargaon, Sher-e-Bangla Nagar Administrative Area, Dhaka-1207 Phone (PABX): +88-02-55007131-2 Fax: +88-02-55007106 E-mail: info@sec.gov.bd Web: www.sec.gov.bd