Rule · BSEC · 3 Feb 2010

Order related to portfolio managers' margin ratio to 1:1

The Securities and Exchange Commission sets the maximum margin loan ratio for portfolio managers at 1:1, effective from February 7, 2010, until further notice. Portfolio managers are authorized to distribute margin loans to clients based on this ratio, provided they ensure compliance with Instruction No. 7 regarding the determination of the market value of the relevant portfolio or securities. This directive applies to all portfolio managers and supersedes previous margin limits.

BangladeshBangladesh Securities and Exchange Commission

No. SECI/CMARRC/2001-43/16 Date: 3 February 2010

Order

Pursuant to the powers conferred under Clause (1) of Instruction No. 6 regarding the provision of margin loans listed in the Schedule of the Securities and Exchange Commission (Merchant Bankers and Portfolio Managers) Rules, 1996, by this order, the maximum limit of margin loans is hereby re-determined as 1:1 (one to one). Based on this, merchant bankers (portfolio managers) may distribute available margin loans to their clients, i.e., customers, from 7 February 2010 onwards, until further instructions are issued. It is noted that for this purpose, it must be ensured that Instruction No. 7 is followed in determining the market value of the relevant portfolio/securities.

For Securities and Exchange Commission Md. Ziaul Haque Khondker Chairman

Distribution:
All Merchant Bankers

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