Bangladesh Securities and Exchange Commission

Securities Commission Building
E-6/C, Agargaon, Sher-e-Bangla Nagar Administrative Area, Dhaka-1207 www.sec.gov.bd

Ref No.-BSEC/SRI/CCA/DS/2021/212
Date 4 March 22, 2022 AD

Directive

Whereas, the Bangladesh Securities and Exchange Commission (hereinafter referred to as the "Commission") has been informed that deficits in investors' invested funds in the Consolidated Customers’ Account of certain single holder companies operating in the capital market, and deficits in investors' securities in the relevant Depository Participant, have been identified;

Whereas, it has come to the Commission's attention that such activities have harmed investors' interests and disrupted the discipline of the capital market;

Therefore, in order to protect investors' interests and the discipline of the capital market in Bangladesh, if a deficit in investors' invested funds in the Consolidated Customers’ Account of any single holder company or a deficit in investors' securities in the relevant Depository Participant is found, the Commission, under the powers granted in Section 20A of The Securities and Exchange Ordinance, 1969, in addition to measures taken under the existing Securities Laws against the relevant single holder company and Depository Participant until the deficit is adjusted, issues the following directives to the Dhaka Stock Exchange Limited, Chittagong Stock Exchange Limited, and Central Depository Bangladesh Limited, which shall take immediate effect:

1. The Free Limit facility 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 remain suspended;
2. Dividend payments against the ownership shares of the relevant exchange shall remain suspended;
3. Benefits available for IPO/RPO/QIO as the quota of Eligible Investors/Qualified Investors shall remain suspended;
4. Renewal of the registration certificate of the relevant single holder company and Depository Participant shall remain suspended;
5. The facility to open new branches or digital booths shall remain suspended;
6. After the relevant single holder company adjusts the deficit in investors' invested funds and securities, the relevant exchange shall exercise special supervision over such single holder company for a minimum of one year. In addition, the consolidated customer account (Consolidated Customers’ Account) and securities held in the relevant Depository Participant shall be examined twice a month; and
7. The Dhaka Stock Exchange Limited, Chittagong Stock Exchange Limited, and Central Depository Bangladesh Limited shall take necessary measures to implement the Commission's aforementioned decision and submit a report to the Commission.

By Order of the Bangladesh Securities and Exchange Commission,

[Signature]
Professor Shibly Rubaiyat-ul-Islam
Chairman

"Mujib Year's Pledge
Capital Market will be the source of Development-Economy"