Bangladesh Securities and Exchange Commission

Jiban Nima Tower (15th, 16th, 17th, and 21st Floors) 10 Dilkusha B/ A, Dhaka-1000, Bangladesh

SEC/CMARRC/2009-193/ 145
Date: February 27, 2013

Directive

Directive regarding the Provision held against Unrealized Loss by Stock Brokers/Stock Dealers and Merchant Bankers

(1) Stock Brokers/Stock Dealers:

Pursuant to the powers conferred under Section 20A of the Securities and Exchange Ordinance, 1969, the Commission provides the following facilities regarding the maintenance of provisions against unrealized losses by stock brokers/stock dealers:

• a) Stock dealers are granted the optional facility to maintain provisions against unrealized losses arising from the revaluation of shares held in dealer accounts (Dealer Account) as of December 31, 2012 (or according to the applicable financial year), by amortizing them in equal quarterly portions (20%) from December 2012 to December 2013 (or according to the applicable financial year); and

• b) Stock brokers are granted the optional facility to maintain provisions against unrealized losses arising from the revaluation of shares traded through margin loans granted to clients, as of December 31, 2012 (or according to the applicable financial year), by amortizing them in equal quarterly portions (20%) from December 2012 to December 2013 (or according to the applicable financial year).

However, these facilities apply only to provisions against unrealized losses arising from revaluation in the year ending December 31, 2012 (or according to the applicable financial year). Subsequent provisions (if any) must be maintained in full as prescribed. It is noted that no cash dividends may be paid for the relevant financial year by availing the aforementioned facilities.

(2) Merchant Bankers:

Pursuant to the powers conferred under Section 20A of the Securities and Exchange Ordinance, 1969, the Commission provides the following facilities regarding the maintenance of provisions against unrealized losses by merchant bankers:

• a) Merchant bankers (where applicable) are granted the optional facility to maintain provisions against unrealized losses arising from the revaluation of shares held in their own portfolios (Own Portfolio) as of December 31, 2012 (or according to the applicable financial year), by amortizing them in equal quarterly portions (20%) from December 2012 to December 2013 (or according to the applicable financial year).

• b) Merchant bankers are granted the optional facility to maintain provisions against unrealized losses arising from the revaluation of shares traded through margin loans granted to clients, as of December 31, 2012 (or according to the applicable financial year), by amortizing them in equal quarterly portions (20%) from December 2012 to December 2013 (or according to the applicable financial year).

However, these facilities apply only to provisions against unrealized losses arising from revaluation in the year ending December 31, 2012 (or according to the applicable financial year). Subsequent provisions (if any) must be maintained in full as prescribed. It is noted that no cash dividends may be paid for the relevant financial year by availing the aforementioned facilities.

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For Bangladesh Securities and Exchange Commission

Adapok Dr. M. Khairul Hossain
Chairman

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Phone (NSCS): 88 02 9568101-2, 88 02 9564525, Fax: 88 02 9564721, 7176004 E-mail: secbd@bmail.net Web: www.secdb.org