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It is illegal to reproduce this material in any format without prior 

written approval of LankaBangla Securities Limited.

MARKET MAKER IN 

BANGLADESH

G

enerally, the stock 
market consists of 
investors, share-issuing 
organizations, financial 
institutions, and fund 

managers as the vital participants. Primary 
Market is created through issuing Initial 
Public Offer (IPOs) and Secondary Market 
is created through trading the shares which 
came through IPO. Intermediaries of the 
Capital Market are Stock Brokers, Stock-
Dealers, Depository Participants, Merchant 
Bankers (MB), Asset Management 
Companies, Credit Rating Companies, 
Securities Custodians, Market Makers, 
Security Lenders and Borrowers, Fund 
Managers to name a few. Even though the 
Market Maker Rules was formulated in the 
year 2000, none of the banks, merchant 
banks and stockbrokers has so far showed 
interest to get the opportunity of becoming 
a market maker. The stringent regulations 
have been one of the reasons behind the 
institutions not participating in Market 

Making in Bangladesh. Not much work 
has been done regarding Market Making 
in Bangladesh.

Bangladesh Securities and 

Exchange Commission 

(Market Making) Rules, 

2017

Short Title.

This rule shall be called as "Bangladesh 
Securities and Exchange Commission 
(Market Making) Rules, 2017".

Definition. 

(1) In this rule, unless there is anything 
repugnant in the subject or context shall 
mean, - 

(a) "Ordinance" means the  Securities 

and Exchange Ordinance, 1969

(b) "Authorized securities" shall mean 

any securities listed in the exchange 

and any securities determined by any 
regulation for the purpose of making 
the market under this rule

(c) "Law" means the Bangladesh 

Securities and Exchange Commission 
Act, 1993 (Act No. 15 of 1993)

(d) ‘Form’ means any forms stated in the 

schedule of this rule 

(e) "Market Maker" means any person, 

who by obtaining the registration 
certificate issued by the Commission, 
enters into a tripartite agreement with 
any issuer or fund and any exchange: 
by the appointment of the exchange 
for the establishment of the market 
for an authorized securities

(f) "Market Making" means to state both 

the buy and sell price continuously 
for ensuring and to determine the 
liquidity and the appropriate price of 
the authorized securities