Directive regarding distribution of dividend, fractional bonus share and rights share to the margin accountholders of the stock brokers

Bangladesh Securities and Exchange Commission
Jiban Bima Tower (15th, 16th, 17th and 21st floors), 10 Dilkusha B/A, Dhaka-1000, Bangladesh.

Ref No - SECI/CMMRCDD/2009-193/169

14 May 2015

Directive

Under the power conferred by Section 20A of the Securities and Exchange Ordinance, 1969, the Bangladesh Securities and Exchange Commission issues the following directives for the operation of customer accounts held with stock brokers by issuer companies or mutual funds; which shall come into force immediately:

a) In the case of payment of proceeds from the sale of dividends or bonus shares by an issuer company or mutual fund, the dividend amount in the BO accounts of margin-classified customers shall be sent together with a list of such BO accounts to their respective DP (Depository Participant) by way of a check or dividend warrant. The said DP shall subsequently distribute them to the respective investors' accounts according to the list;

b) No margin customer of a stock broker may renounce rights shares without the permission of the stock broker; and

c) In this regard, the stock broker shall provide the list of its margin customers to the relevant issuer company or asset manager.

For and on behalf of
Bangladesh Securities and Exchange Commission

(Signature)
Professor Dr. M. Khairul Hossain
Chairman

Phone (PBX): +880-2-9568101-2, +880-2-9564255, Fax: +880-2-9563721, E-mail: secbd@bdmail.net, Web: www.secbd.org, www.sec.gov.bd