The Bangladesh Securities and Exchange Commission amended the Securities and Exchange Rules, 2020 to tighten conditions on how stock-brokers and stock-dealers may use interest earned on bank accounts opened for consolidated customers’ accounts. The amendment requires a portion of that interest to be transferred to the Investors’ Protection Fund and adds a reporting requirement to stock exchanges and the Commission. Under the revised Rule 6(1) provisos, interest earned from consolidated customers’ account (CCA) bank accounts may be used by a stock-broker or stock-dealer only after depositing 25% of the interest income accrued in the CCA to the Investors’ Protection Fund (IPF) of the relevant stock exchange(s) on a semi-annual basis (January–June and July–December), within 30 days after each period ends. Each such IPF deposit must be reported to the respective stock exchange(s), with intimation to the Commission, including calculation details and supporting documents, within 10 days of the deposit. The amendment takes immediate effect.
Bangladesh Securities & Exchange Commission 2025-07-03
Bangladesh Securities and Exchange Commission requires brokers to transfer 25% of consolidated customers’ account interest to Investors’ Protection Fund and report deposits
The Bangladesh Securities and Exchange Commission amended the Securities and Exchange Rules, 2020, mandating stock-brokers and stock-dealers to deposit 25% of interest earned from consolidated customers’ accounts into the Investors’ Protection Fund semi-annually. The amendment also introduces a reporting requirement to stock exchanges and the Commission, effective immediately.