42

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

written approval of LankaBangla Securities Limited.

and the terms and conditions in 
relation to the responsibilities and the 
liabilities of the market maker and its 
designated client.

Provided that the Commission may 
extend the time limit of such compliance, 
if exchange request an appeal to the 
commission due to a reasonable reason 
that the concerned Exchange could not 
comply within the time period.

Cancellation of Registration 
Certificate, Suspension, etc

1. Any market maker who has lost the 

eligibility described in this Rule or 
the rules, Ordinances, Regulations, or 
related regulations of the Regulations 
or bye-laws or any conditions of 
registration certificate given under this 
rule, any of the tripartite agreement  or 
has caused violation of the conditions, 
the Commission may cancel the 
certificate of the market maker or the 
effectiveness of the registration for a 
given period, Last may:

Provided that before the cancellation or 
termination of any registration under 
this rule, the Commission will give its 
opportunity to the concerned market-
maker at least seven days notice to submit 
its written reply.  
2. After obtaining notice under sub-

rule (1), if the market maker reply 
to the notice within the prescribed 
time, the Commission may then In 

accordance with the said reply, and 
if necessary, by giving a chance to 
hear to its chief executive in personal 
or  by representative, the decision 
will be made about the cancellation 
of the proposed cancellation and 
the decision will be made in writing 
to the concerned market maker, 
and a copy of the decision will be 
forwarded to the exchange and issuer 
or fund manager. 

3. In case of any special situation if the 

commission is specifically agreed 
under this rule that before the decision 
of cancellation of a registration 
certificate it is necessary to suspend, 
then the commission before or after 
the notice is made in accordance with 
the terms of sub-rule (1) may suspend 
the effectiveness of the registration 
of the market maker. If that is made 
the commission shall duly inform the 
market maker, exchange and issuer or 
fund or asset manager.  

4. If the effectiveness of any 

registration under sub-rule (2) and 
(3) is suspended, then on the basis 
of the certificates, the market maker 
cannot operate as a market maker of 
authorized securities for the creation 
of market. 

Inspection and Investigation

1. To ensure whether the market maker 

is performing his duties and functions 
under this Rules, and if there is any 
complaint or information obtained by 
the exchange or on its own initiative, 
or the information related to it, the 
exchange may investigate the market 
maker and its designated client 
accounts book, register and other 
relevant documents and its activities 
and in this regard, any officer of the 
Exchange or any other person or 
organization shall be appointed as 
inspector by the Exchange and within 7 
(seven) working days of the inspection, 
the relevant report shall be submitted to 

the Exchange. With the opinion of the 
concerned exchange, the report shall be 
forwarded to the Commission within 
15 (fifteen) working days: 

Provided that during inspection of the 
concerned exchange, the market maker and 
its designated client and all the members, 
directors, officers and other employees 
of the said market maker will give utmost 
cooperation in this process of investigation.
Further provided that if the concerned 
appointed investigating officer by the 
exchange summons for an important reason 
or needs any accounts related book, deeds 
and other important documents of the market 
maker and any of its designated client, then 
they shall forward the same to the concerned 
exchange or its investigating officer.
There are more conditions that whether 
the market maker are performing its 
duties and functions under this Rules, 
the commission may investigate and if 
there is any complaint or information 
obtained by the commission or on its own 
initiative, or from the information related 
to it, the Commission may investigate the 
market maker and its designated client 
and can further sought for accounts related 
information and documents and any other 
necessary information. 

2. The rules to be maintained in the stated 

provisions , would be considered as an 
order or instruction to be complied as per 
Securities and Exchange Commission 
Act, 1993. The condition goes that 
the Commission preserve the right 
to enact any new order or instruction 
from time to time as per these rules 
and regulations. Each Market Maker, 
Stock Exchange or approved Security 
Issuer must comply with the order or 
instructions wholeheartedly.

Ordinance or Compliance 
Order 

The provisions of this rule shall be 
deemed to be in compliance as an order or 
instruction given by the regulator.

A market maker, sometimes 
called a designated broker 
(DB), is a broker, dealer or 
investment firm that plays 
an essential role in how 
an ETF trades and ensures 
the continued and efficient 
exchange of securities 

between buyers and sellers.