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MARKET PULSE 

FEB-2018

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written approval of LankaBangla Securities Limited.

decision to the concerned applicant and 
the exchange.

6. A registration certificate will be 

issued, if payment of BDT 50 (fifty) 
thousand is paid in favor of the 
commission, by the bank draft or pay 
order, which will be notified to the 
applicant, and a copy of which will 
be given to the concerned exchange. 

Duration and Renewal of 
Registration Certificates
 

1. The registration shall be valid for 

one year from the date of issuance, 
subject to the provisions of this Rule.

2. If the application is submitted in the 

prescribed form (Form-C) with a 
bank draft or pay order in favor of the 
commission as a renewal fee of BDT 
10 (Ten) Thousand is paid minimum 
(30) thirty days prior to the expiry of 
the registration period and as such 
the registration certificate shall be 
renewed for further one year after the 
expiry of the registration.

3. If the renewal fee is not deposited 

within the prescribed time, the 
effectiveness and the validity of the 
registration certificate will end after 
the expiry of its validity, and in that 
case, for the purpose of renewal 
thereof, for every year or part thereof, 
as a fine half of the amount of 
renewal fee with renewal fees shall be 
deposited in favor of the Commission 
under sub-rule (2) for the validity of 
the registration certificate which can 
be renewed for further one year. 

4. The renewal fee shall also need to be 

paid for the period of suspension of the 
validity of the registration certificate.

Appointment of Market-
Maker, etc 

1. Shall be appointed by the Market 

Making Exchange in order to create 
market for each of the securities. 
Under this rule the issuer or fund of 

the authorized securities, concerned 
exchanges and registered market 
maker needs to execute amongst 
themselves a tripartite agreement.

2. The concerned market maker and its 

director or 5% or more shareholder 
shall have no connection to the issuer of 
the securities or its asset/fund manager 
or trustee or custodian and any of 
its subsidiary and or its Associate 
Company or its Holding Company.

3. As per sub-rule (1), the terms and 

conditions of the tripartite agreement 
for the appointment of a market-
maker shall be determined by the 
concerned exchange.

4. After the market maker is appointed 

or after the listing of approved 
securities, whichever is applicable, 
market-making activities shall be 
initiated within the stipulated time as 
determined by the exchange.

5. Market maker shall not stop its 

activities in relation to the concerned 
securities without obtaining 
permission at least fifteen days before 
from the concerned exchange:

Provided that if the securities are suspended 
or stopped by any market maker with the 
permission of the concerned exchange, the 
market maker will not be eligible for re-
appointment for at least 90 (ninety) days 
from the date of the closure or suspension

6.  The concerned Exchange may cancel 

the activities of the market maker 
or cancel the appointment of the 
previous appointment of the market-
maker by giving adequate reasons to 
the Commission. 

7. If there is a paid up capital of BDT 

10 (ten) crores, then a market-maker 
may be appointed for market-making 
of One (1) Authorized Security. 

Provided that for each additional authorized 
securities, the market maker shall have 
additional paid up capital at a rate of 10 
(ten) crore taka, the net asset and net capital 
surplus will be in the market for the market-

making of each authorized securities. 
However, a market maker shall not be 
appointed to make a market of more than 5 
authorized securities at the same time.

Further provided that, the market maker 
cannot at any time have its own portfolio 
value greater than 5 times of it's net worth.

8. There will be no more than 5 market 

makers for each authorized security.

9. The market maker, as ordered by the 

commission from time to time shall 
maintain its risk based capital adequacy.

Transaction in the Accounts of 
a Particular Designated Client 
by the Market Maker 

Any market maker provided it is a 
registered stock broker-dealer, may, 
beside its own portfolio, involve in market 
making activities of the Designated 
Clients’ account subject to the following 
conditions:

1. A market maker, in order to involve in 

market making activities of a specific 
authorized security in a designated 
client’s account, shall have to apply 
to the exchange through prescribed 
forms in order to enlist that particular 
Designated Client;

2. The application for the concerned 

market maker to enlist a designated 

Provided that if the 

securities are suspended 

or stopped by any 

market maker with 

the permission of the 

concerned exchange, 

the market maker will 

not be eligible for 

reappointment for at least 

90 (ninety) days from 

the date of the closure or 

suspension.