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i. the net worth is on the downside for 

any reason of the market maker as per 
sub-rule (2) of Rule 4

ii. For any reason, if the market 

maker or  designated client loses its 
qualifications described in this rule

iii. If the registered or business address 

of the market maker or designated 
clients is changed; and

iv. If for some reason the name of the 

market maker or the name of the 
designated client or its ownership or 
its board is changed. 

2. Every market creator will keep all the 

bookkeeping of the Market Making 
Related documents and information 
related to it and its designated client 
separately and accurately for at least 
seven years. 

3. In addition to the obligations 

described in, sub-rule (1) and (2), 
each market maker shall compulsorily 
obey the compulsions determined by 
the concerned Exchange.

Operational Activities of the 
Market Maker, etc 

1. To ensure the appropriate price of 

the authorized securities created in 
the market for each working day and 
shall take necessary measurements 

to arrange liquidity to reduce the 
imbalance of the price of the securities 
and will further determine its role in 
the context of market behavior.

2. To make the market, the market 

maker shall buy - sell any authorized 
securities in its own account or in 
its designated client account in the 
following terms and conditions: 

a. On each working day, it shall quote 

the bid price and offer price. At the 
time of price quotation, the bid price 
and the offer price shall be jointly 
quoted at the same time. The price of 
the bid and offer shall not be the same 
in the proximate time.

Provided that if the transaction of an 
authorized securities is temporarily closed 
and or suspended, the responsibility to 
provide the bid price and offer price 
of such securities shall be temporarily 

b. The amount of bid price and the 

offer price at a specific time may be 
maximum 5% (five percent) less or 
more compared to the value of the 
prior bid price and offer price.  

But there is a condition that the difference 
of the bid price and the offer price shall be 
maximum 5%. 

Provided further that, considering the 
type or market value of the authorized 
securities, the exchange can determine the 
difference of the bid price and the offer 
price by less than 5% (five percent);  

c. Authorized securities must not be 

bought and sold to the Price Leader. 

d. A minimum amount or portion of 

each bid price and the offer price 
shall be determined by the exchange 
through its guideline from time to 

e. The transaction shall be ensured and 

done at the proposed quoted price.

f. From the Issuer or Fund of the 

authorized securities, the commission 

may not directly or indirectly accept 
any types of financial benefit. 

g. No form of Insider Trading business of 

authorized securities may be deployed; 

h. If there is no transaction of an 

authorized securities in a given period 
at a quoted price, with respect to the 
market, subject to the compliance 
with the provisions of the above 
clauses (a) and (b), may change its 
rates, and in all cases the proposed 
bid shall not cross the limit of the 
applicable limit of Circuit Breaker.

i. The change in the price stated in 

clause (h) shall be determined by 
the exchange in a short span of time 
through its guideline.

j. The authorized securities, may not 

accept any securities to buy and sell 
from its issuer, fund or asset manager 
or trustee or custodian or sponsor, 
director or any of its employees.

k. For buy sell of each authorized 

securities, a minimum of one 
authorized representative must be 
appointed which shall be informed 
to the exchange and if there is 
any material change that shall 
also be informed to the exchange 

 Short Selling 

1. With the order of the Ordinance or 

the rules of this ordinance or any 
other rules, regulations or any order, 
the market maker can sell its own 
securities through short selling.

Provided, the market maker in its own 
account may not short sell any authorized 
securities more than 30% (thirty percent) 
of the total sell. 

Provided further that for the purpose of 
short selling, the securities shall not be 
borrowed from the sponsor, director, 
employee or staff or 10% or more 
shareholders of the issuer of the approved 
securities (except the market maker).

To ensure the appropriate 
price of the authorized 
securities created in the 
market for each working 
day and shall take 
necessary measurements to 
arrange liquidity to reduce 
the imbalance of the price 
of the securities and will 
further determine its role 
in the context of market