Order regarding the investment limit in the secondary market for eligible as Qualified Investor (QI)

BANGLADESH SECURITIES AND EXCHANGE COMMISSION
Securities Commission Bhaban, E-6/C Agargaon, Sher-e-Bangla Nagar Administrative Area, Dhaka-1207, Bangladesh.

Order
Dated, 21 September 2022

NO. BSEC/CMRRCD/2009-193/43- Whereas the Bangladesh Securities and Exchange Commission (hereinafter referred to as the “Commission”) deems it appropriate that in the interest of investors, securities market and for the development of securities market, certain directions should be issued to the stock exchange(s), Depository, Qualified Investors and the issuer companies listed or to be listed with the Small Capital Platform of the stock exchange(s).

Now, therefore, in exercise of the powers conferred by Section 20A of the Securities and Exchange Ordinance, 1969 (Ordinance No. XVII of 1969), the Commission hereby directs the Dhaka Stock Exchange Limited, the Chittagong Stock Exchange Limited, Central Depository Bangladesh Limited, Qualified Investors (QIs) and the issuer companies listed or to be listed with the Small Capital Platform (SME platform) to comply with the following, namely: -

(a) Any investor registered with the Electronic Subscription System (ESS) of the stock exchange(s) at the time of Qualified Investor Offer (QIO) and/or any investor who has been maintaining a minimum portfolio investment of Taka 30,00,000 (Taka Thirty Lac) in the listed securities at any platform or board of the stock exchange(s) at market price or cost price, whichever is higher as per his portfolio statement, shall be eligible as a Qualified Investor (QI) for trading of securities at the Small Capital Platform (i.e., SME platform) of the stock exchange(s):

Provided that the Central Depository Bangladesh Limited (CDBL) or its Depository Participants (DPs) shall provide detailed information of qualified investors (QIs) on the basis of clause (a) above for trading of securities at the SME platform on quarterly basis to the stock exchange(s) and the stock exchange(s) shall register automatically and update such list of eligible investors (QIs) accordingly:

Provided further that any investor who was eligible as a qualified investor (QI) on the basis of portfolio investment of Tk. 20,00,000 (Taka Twenty Lac only) as per the Commission’s Notification No. BSEC/SRMIC/2021-206/69 dated February 17, 2022 shall have to increase his portfolio investment in the listed securities to Tk. 30,00,000 (Taka Thirty Lac only) within 3 (three) months of this Order to remain valid as a qualified investor (QI) for trading securities at the SME platform:

Provided further that any investor or qualified investor (QI) who is holding SME listed securities but doesn’t fulfill the requirement of clause (a) above shall only be allowed to sell his securities at the SME platform.

(b) The stock exchange(s) shall provide fully automated (online/offline) registration of qualified investors (QIs) at free of cost for the purpose of trading of securities listed with the SME platform.

(c) The Commission’s Notification No. BSEC/SRMIC/2021-206/69 dated February 17, 2022 shall be repealed by this Order and all other terms and conditions of the Commission’s Notification No. BSEC/SRMIC/94-231/Part-6/225 dated September 16, 2021 shall remain unchanged.

This shall have immediate effect.

By Order of the Bangladesh Securities and Exchange Commission

Professor Shibli Rubaiyat-Ul-Islam
Chairman.

Phone (PABX) : +88-02-55007131-2, Fax : +88-02-55007106, E-mail : secbd@bdmail.net, Web : www.sec.gov.bd