Suspension of Rule 3(5) of the Margin Rules 1999

BANGLADESH SECURITIES AND EXCHANGE COMMISSION
JIBON BIMA TOWER (14, 15, 16 & 20 FLOOR), 10 DILKUSHA C/A, DHAKA-1000, BANGLADESH

No. BSEC/CMRRCD/2009-193/197

19 February 2017

ORDER

Whereas, the Bangladesh Securities and Exchange Commission is satisfied that in the interest of investors or securities market or for the development of securities market, it is necessary to issue an order in respect of the Margin Rules, 1999;

Now, therefore, in exercise of the power conferred by section 20A of the Securities and Exchange Ordinance, 1969 (XVII of 1969), the Commission hereby issues the following directions, namely:-

(1) The effectiveness of the following provision of sub-rule (5) of rule 3 of the Margin Rules, 1999 shall remain suspended for 6 (six) months from the date of issuance of this Order:

"The member shall not permit any new transactions in the margin account unless the resulting equity in the account would be not less than 150% of the debit balance.".

(2) The margin providers regarding negative equity of BO accounts shall provide monthly status report thereon to the stock exchanges and the stock exchanges shall send a summary statement to the Commission after compilation of those status reports within first week of the following month.

By order of the Bangladesh Securities and Exchange Commission

(Signature)

Dr. M. Khairul Hossain
Chairman.

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