Suspension of the effectiveness of sub-rule (5) of rule 3 of the Margin Rule, 1999 — BSEC — BD

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

No. BSCE/CMRRCD/2009-193/201

August 17, 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 up to December 31, 2018:

"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) Each of the TREC Holders engaged in transactions in the margin account in accordance with paragraph (1) above shall prepare a quarter-wise work plan in relation to individual negative equity accounts for a period beginning from October 1, 2017 and ending on a date no later than December 31, 2018 ensuring the full compliance with the Margin Rules, 1999.

(3) Each above-stated TREC Holder shall submit the work plan mentioned in paragraph (2) to the Commission and the Exchange(s) by September 30, 2017 and also submit quarterly progress report of the negative equity accounts concerned according to its work plan to the Commission and the Exchange(s) within one week after each quarter.

(4) The Exchanges shall send a consolidated summary statement on the work plans and the quarterly progress reports mentioned in paragraph (3) to the Commission within two weeks from the last date of receiving the same.

This Order shall be effective from August 19, 2017.

By order of the Bangladesh Securities and Exchange Commission

(Signature)
Dr. M. Khairul Hossain
Chairman.

Phone (PABX): +880-2-9568101-2, +880-2-9561525, Fax: +880-2-9563721, e-mail: secbd@bdmail.net, Web: www.secbd.org, www.sec.gov.bd

Lineage: No known changes

RegAlert holds no document that amends or replaces this one. This is not a check that it is in force: confirm with the regulator.

amendssupersedesissued underrefers todashed card: not in RegAlert (or proposed)arrows run from the older text to the one that changes it

The links and the sentences they come from (2)

Amends

Margin Rules, 1999Not in RegAlert
“The effectiveness of the following provision of sub-rule (5) of rule 3 of the Margin Rules, 1999 shall remain suspended”

Issued under

Securities and Exchange Ordinance, 1969 (XVII of 1969)Not in RegAlert
“in exercise of the power conferred by section 20A of the Securities and Exchange Ordinance, 1969 (XVII of 1969)”