Order Regarding Provision of Margin Loans by Merchant Bankers

Bangladesh Securities and Exchange Commission

Order

Date: 26 December 2021

No.- BSERC/CMRRCDI/2009-193/31- Under Rule 36 of the Securities and Exchange Commission (Merchant Banker and Portfolio Manager) Rules, 1996, the Bangladesh Securities and Exchange Commission hereby cancels the previously issued Order No.- SECI/CMRRCDI/2009-193/178 dated October 27, 2015, which contained Direction No. 14 regarding margin loan provision listed in the Schedule, and in the matter of the provision of margin loans by merchant bankers, the Commission hereby issues the following order:

1. No margin loan shall be provided for the purchase of any Z-category listed securities on the stock exchange;

2. No margin loan shall be provided for the purchase of any newly listed securities on the stock exchange for the first 30 (thirty) trading days from the date trading commences after listing;

3. There shall be no restriction on the provision of margin loans in the case of a change in category of any existing listed securities other than Z-category securities:

Provided that, in the case of a listed security being changed from Z-category to a higher category, no margin loan shall be provided for the purchase of such securities for the first 07 (seven) trading days from the date of category change.

This order shall come into effect immediately.

By Order of the Bangladesh Securities and Exchange Commission,

(Signature)
Professor Shibly Rubaiyat-ul-Islam
Chairman.

Securities Commission Building, E-6/C Agargaon, Sher-e-Bangla Nagar Administrative Area, Dhaka-1207 Phone (PABX) : +88-02-55007131-2 Fax : +88-02-55007106 E-mail : info@sec.gov.bd Web : www.sec.gov.bd