RegAlertRule · BSEC · 6 Apr 2022
Directive on Outstanding CDSL and Annual Account Maintenance Fees of Depository Participants (DP)
The Bangladesh Securities and Exchange Commission suspends Free Limit benefits, dividend entitlements, IPO/RPO eligible investor quotas, license renewals for TREC holders and DPs, and approvals for new branches or digital booths for Depository Participants with outstanding CDSL and annual account maintenance fees. These sanctions apply immediately to DPs who have delayed payment despite repeated notices from CDSL. The measures are enforced under Section 20A of the Securities and Exchange Ordinance, 1969, to maintain capital market discipline.
Bangladesh Securities and Exchange Commission
BSEC/CDBL/10/2016/354 Date: April 06, 2022
Directive
Whereas, the Bangladesh Securities and Exchange Commission (hereinafter referred to as the "Commission") has been informed that certain Depository Participants (DPs) operating in the capital market have been keeping the CDSL and annual account maintenance fees payable to the Commission, the National Board of Revenue (NBR), and Central Depository Bangladesh Limited (CDBL) outstanding for a long period;
Whereas, it appears to the Commission that despite repeated letters from CDSL directing the Depository Participants to pay the aforementioned outstanding fees, some DPs are intentionally delaying the payment of the fees;
Therefore, in the interest of the capital market of Bangladesh and to maintain the discipline of the capital market, the Commission, exercising the powers granted under Section 20A of the Securities and Exchange Ordinance, 1969, along with the measures taken under the existing Securities Act against those Depository Participants whose CDSL and annual account maintenance fees remain outstanding, has issued the following directives to Central Depository Bangladesh Limited, Dhaka Stock Exchange Limited, and Chittagong Stock Exchange Limited, which will come into force immediately:
(a) The Free Limit benefit available under regulation 3 of the Dhaka Stock Exchange (TREC Holder's Margin) Regulations, 2013 and regulation 3 of the Chittagong Stock Exchange (TREC Holder's Margin) Regulations, 2013 shall be suspended;
(b) Dividends payable against the ownership shares of the respective exchange shall be suspended;
(c) Benefits available under the Eligible investor's quota for IPO/RPO shall be suspended;
(d) The renewal of registration certificates of the respective TREC holder companies and Depository Participants shall be suspended; and
(e) Approval for new branches and approval for digital booths shall be suspended.
By order of the Bangladesh Securities and Exchange Commission,
(Signature)
Professor Shiblly 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
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- Issued under
- Securities and Exchange Ordinance, 1969Not in RegAlert
“exercising the powers granted under Section 20A of the Securities and Exchange Ordinance, 1969”
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