Directive on Members' Margin Ratio to 1:1.5

No. SEC/CMRRCD/2001-43/12 February 01, 2010
DIRECTIVE
Whereas, the Securities and Exchange Commission, in the interest of investors and capital markets, considers it to be appropriate that the credit facilities extended by the members of stock exchanges under the Margin Rules, 1999 should be rationalized;

Now, therefore, the Commission in exercise of its power conferred by section 20A of the Securities and Exchange Ordinance, 1969 (XVII of 1969), hereby directs the Dhaka Stock Exchange Ltd. and the Chittagong Stock Exchange Ltd. and their members to the effect that, the members of the stock exchanges shall not extend credit facilities to their approved clients beyond 1.5 times of the client’s margin/client’s deposit (i.e. credit facilities shall be on 1:1.5 basis) under the Margin Rules, 1999. This shall have immediate effect. By order of the Securities and Exchange Commission

Md. Ziaul Haque Khondker
Chairman.
Distribution:

1. Dhaka Stock Exchange Ltd.
2. Chittagong Stock Exchange Ltd.
3. Central Depository Bangladesh Ltd.