Directive: Regarding Margin Ratio by the Merchant Banker

No. SECI/CMARRC/2009-193/136 September 30, 2012

Order

In exercise of the powers conferred under Rule 36 of the Securities and Exchange Commission (Merchant Banker and Portfolio Manager) Rules, 1996, and Paragraph 6(1) of the Schedule regarding margin lending, the Securities and Exchange Commission hereby redefines the maximum limit/rate of margin as follows until further order:

1. The current margin rate, i.e., 1:2 (one ratio two, i.e., twice the client's or customer's funds), shall remain in force until June 30, 2013;
2. From July 1, 2013, to December 31, 2013, the ratio shall be 1:1.5 (one ratio one and a half, i.e., one and a half times the client's or customer's funds);
3. From January 1, 2014, to June 30, 2014, the ratio shall be 1:1 (one ratio one, i.e., equal to the client's or customer's funds); and
4. From July 1, 2014, the ratio shall be 1:0.5 (one ratio half, i.e., half of the client's or customer's funds).

This order is issued in continuation of the Commission's previous order No. SECI/CMARRC/2009-193/93 dated January 10, 2011, regarding the same subject, and shall take effect immediately.

By Order of the Securities and Exchange Commission

Professor Dr. M. Khairul Hossain
Chairman