RegAlert

Rule · BSEC · 17 Dec 2009

Directive prohibiting margin loans for mutual fund units trading above NAV premium

securities
capital

The Securities and Exchange Commission directs stock brokers of Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited to immediately stop providing or disbursing any further loan or credit facilities to clients for purchasing or accepting as marginable securities the units of all listed Mutual Funds where the current market price exceeds 7.5% of the latest disclosed Net Asset Value. A separate directive requires merchant bankers, including portfolio managers registered under the Securities and Exchange Ordinance, 1969, to immediately cease providing margin loans or credit facilities for such mutual fund units exceeding the same 7.5% premium threshold. These directives supersede previous orders dated October 26, 2009, and take immediate effect.

BangladeshBangladesh Securities and Exchange Commission

No. SEC/CMRRCD/2001-43/05 December 17, 2009
DIRECTIVE
The Securities and Exchange Commission, in exercise of the power conferred on it under
section 20A of the Securities and Exchange Ordinance, 1969 (Ordinance No. XVII of
1969), hereby directs the stock brokers of Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited to immediately stop providing or disbursing of any further loan or credit facilities to their clients to purchase or accept as “marginable securities” under clause (d) of sub-rule (12) of rule 3 of the Margin Rules, 1999, the units of all listed Mutual Funds, the current market price of which exceeds 7.5% (seven and a half percent) of the latest disclosed Net Asset Value (NAV) based on market price. This Directive shall supersede the previous Directive No. SEC/CMRRCD/2001-43/204 dated October 26, 2009. This Directive shall have immediate effect. By order of the Securities and Exchange Commission

Md. Ziaul Haque Khondker
Chairman.

No. SEC/CMRRCD/2001-43/06 December 17, 2009
DIRECTIVE
The Securities and Exchange Commission, in exercise of the power conferred on it under
section 20A of the Securities and Exchange Ordinance, 1969 (Ordinance No. XVII of
1969), read with wb‡`©kbv bs-14 of wewa 36 of wmwKDwiwUR I G·‡PÄ Kwgkb (gv‡P©›U e¨vsKvi I †cvU©‡dvwjI g¨v‡bRvi) wewagvjv, 1996, hereby directs the merchant bankers, including the portfolio managers, registered under the wmwKDwiwUR I G·‡PÄ Kwgkb (gv‡P©›U e¨vsKvi I †cvU©‡dvwjI g¨v‡bRvi) wewagvjv, 1996 to immediately stop providing or disbursing of any further margin loan or credit facilities to their clients to purchase or accept as marginable securities the units of all listed Mutual Funds, the current market price of which exceeds 7.5% (seven and a half percent) of the latest disclosed Net Asset Value (NAV) based on market price. This Directive shall supersede the previous Directive No. SEC/CMRRCD/2001-43/203 dated October 26, 2009. This Directive shall have immediate effect. By order of the Securities and Exchange Commission

Md. Ziaul Haque Khondker
Chairman.

Note from RegAlert. AI assistants can read this document in full, and search 70,000+ more, through the RegAlert MCP connector (https://mcp.regalert.today/mcp). Free with an account. How to connect ChatGPT, Claude or Cursor.

Lineage: Amended

A newer document in RegAlert amends this one; it applies as amended.

Ordinance No. XVII of 1969Not in RegAlertOrdinance No. XVII of 1969 — Not in RegAlertDirective No.SEC/CMRRCD/2001-43/203 dated Octo…Not in RegAlertDirective No. SEC/CMRRCD/2001-43/203 dated October 26, 2009 — Not in RegAlertDirective No.SEC/CMRRCD/2001-43/204 dated Octo…Not in RegAlertDirective No. SEC/CMRRCD/2001-43/204 dated October 26, 2009 — Not in RegAlertDirective prohibiting marginloans for mutual fund units t…2009-12-17 · this documentDirective prohibiting margin loans for mutual fund units trading above NAV premium (2009-12-17)Directive on Stock Broker Marginfor Mutual Fund Extended to 15% o…2010 · BSECDirective on Stock Broker Margin for Mutual Fund Extended to 15% of Latest Disclosed NAV (2010-03-07)
amendssupersedesissued underrefers todashed card: not in RegAlert (or proposed)arrows run from the older text to the one that changes it
The links and the sentences they come from (4)
Supersedes
  • Directive No. SEC/CMRRCD/2001-43/203 dated October 26, 2009Not in RegAlert

    “This Directive shall supersede the previous Directive No. SEC/CMRRCD/2001-43/203 dated October 26, 2009.”

  • Directive No. SEC/CMRRCD/2001-43/204 dated October 26, 2009Not in RegAlert

    “This Directive shall supersede the previous Directive No. SEC/CMRRCD/2001-43/204 dated October 26, 2009.”

Amended by
Issued under
  • Ordinance No. XVII of 1969Not in RegAlert

    “in exercise of the power conferred on it under section 20A of the Securities and Exchange Ordinance, 1969 (Ordinance No. XVII of 1969)”

Timeline

Amended 1 time · last 2010-03-07

Similar documents from other regulators

More like this from BSEC

BSEC published 2 documents in the last 30 days. We email you each new one the day it's published.

Source: Bangladesh Securities and Exchange Commission — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works

In RegAlert: added