PROHIBITIONS AND RESTRICTIONS

Credit, Hypothecation and Lending of Customers Securities:

No member can do any contravention of any rules made under this Ordinance directly or
indirectly such as extend or maintain credit or arrange for the extension or maintenance of
credit for any person for the purpose of purchasing or carrying any security, borrow securities
or lend securities to others or make hypothecation of any security carried for the account of
any customer.
Prohibition of Fraudulent Acts:
No person can do any statement for the purpose of inducing, dissuading, effecting, preventing
or in any manner that leads to his/her advantage only for selling and purchasing securities
directly or indirectly. Making fraud in calculating and any misstatement which is false but
seems to be true, creates a false and misleading appearance of active trading in any security
and finally being owner of material security not less than ten percent who dont disclose any
facts which are seemed to be fraud, prohibited under this ordinance.
Prohibition of False Statements:
Securities and Exchange Ordinance prohibits the any document, paper, accounts, information
or explanation which fails to prove it as true which has no reasonable causes to believe.
Maintenance of Secrecy:
No person has legal rights to communicate or otherwise disclose information to any person
not legally entitled at present and any information which influences the performance of the
securities in future except the permission of the Commission.

ENQUIRIES, PENALTIES, ORDERS AND APPEALS

Enquiry:
Any person, organization, financial institutions etc in case of issuer of listed securities,
obtained not less than 5 percent of the total equity share of listed company may capable to
provide any relevant financial information regarding equity matter to any appointed persons,
institutions and government bodies on behalf of Bangladesh Securities and Exchange
Commission. Bangladesh Bank also is being informed regarding bank account of from any

bank, or any financial institution or organization about transaction history. The person
conducting enquiry under the act is capable to call for documents, papers, bank account etc
regarding Stock Exchange issues with the power of Code of Civil Procedure and able to bring
judicial proceeding under the section of 193 and 228 of the Code of Civil Procedure for
misleading.
Penalties:
If any person (a company or other body corporate, every director, manager or other officer
responsible for the conduct of its affairs) regarding Stock Exchange and Securities issues
failure to provide information may be entitled to guilty, shall pay penalty not less than 0.1
million Taka and in case of conducting default of 10,000 thousand everyday that needs
further sum calculation to get right figure.
Revision and Review:
Any order regarding securities passed or made under this ordinance may be reviewed within
90 days to be final as well as it takes 6 months to make an application from the date of any
order passed under the subsection (1) to make the review final.

MISCELLANEOUS
Advisory Committee:
The committee may take a vital role regarding this ordinance and financial markets issues if
they think that new rules are fit to control or solve major problem in Stock Exchange. The
committee members should have sound knowledge about the subject matter of new rules,
crisis, issues, restrictions etc.
Delegation of Power:
The commission may be notified time to time by a specification that any restriction, impose,
limitations, conditions and many more regarding old and new issue securities that should be
exercised or performed also by any officer or authority subordinate to it or specially
appointed for the purpose.

Exemption:
Any person or institution wants to exempt his or her or its operations of securities or class of
securities, it is his or her or institutions responsibility to notify the Bangladesh Securities and
Exchange Commission under the official Gazette.
Securities Acquired in Good Faith:
A person with lawful considerations wants to be securities holder or a certificate of an equity
security, scrip, debenture, debenture stock or bond ant that should be held by a careful notice
with the concern of the Commission and finally A Stock Exchange may regulate the
documentation, procedures and guarantees required to transfer property in securities and the
effects, maintaining the respective legal rights and liabilities of the parties and such
regulations which is approved by

Stock Exchange to give the purchasers legal rights on

securities with enforceable terms and conditions.

Power to Make Regulations:
Bangladesh Securities and Exchange Commission makes approval of any legal rights and
power for Stock Exchange and under this ordinance Stock Exchange obtains such rights like
constitution, powers and functions of the governing body of the Stock Exchange,
qualifications for membership of the Stock Exchange, dealing with listed or unlisted
securities, minimum capital requirements, fair representation of the membership in Stock
Exchange, qualifications and functions of the directors, officers and other functionaries of the
Stock Exchange, regulation of days and hours of trading in securities, suspension of trading,
contracts settlements in the Stock Exchange, regulation of forward trading and setting up of a
clearing house in relation to transactions and securities, regulation of

blank transfers,

regulation of broker house and its charge, procedure for the settlement of claims or disputes
etc. All regulations and powers made under this Ordinance shall be published in the official
Gazette in writing and if it already has done Stock Exchange should notify it to its interested
parties.