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Securities-Laws

NBFI can invest in Alternative Investment Fund – Bangladesh Bank

Non-banking financial institutions (FI) can now invest in the non-listed special purpose funds (e.g. Alternative Investment Fund, Special Purpose Vehicle, or any other similar fund) which are registered with Bangladesh Securities and Exchange Commission (BSEC). Through DFIM Circular No.04 dated 30 March 2016, Bangladesh Bank allows such investment.

Public Issue Rules 2015 issued by Bangladesh Securities Exchange Commission

Bangladesh Securities and Exchange Commission on December 28, 2015, issued Bangladesh Securities and Exchange Commission (Public Issue) Rules, 2015 (the “Rules”). The previous regulation was the Securities and Exchange Commission (Public Issue) Rules, 2006, which is now repealed.

Bangladesh Bank introduces new rules for investment in Alternative Investment Fund by banks

Through DOS Circular No. 02 dated 24 November, 2015, Bangladesh Bank introduces the new rules.

The rules applicable to investment in non-listed special purpose fund/funds (Special Purpose Vehicle, Alternative Investment Fund or similar, stated as such fund(s) henceforth) which are registered with Bangladesh Securities and Exchange Commission (BSEC).

Official English translation of Bangladesh Securities and Exchange Commission Act, 1993 published

Government has published the official translation of the Bangladesh Securities and Exchange Commission Act, 1993. The translation covers all the latest amendment (till 2012). The act was previously known as Securities and Exchange Commission Act, 1993. However in 2012, the government amended the act and named the act as Bangladesh Securities and Exchange Commission Act, 1993.

Bangladesh enacted Financial Reporting Act 2015

After much delay Bangladesh parliament passed the Financial Reporting Act 2015 on September 6, 2015. On September 9, 2015 it is officially published as gazette.

This is a big step for ensuring more transparency and accountability in financial reporting activities. After the recent crisis in the stock market, the need for monitoring the auditing and accounting activities grows louder. Back in 2003, the World Bank recommend to establish an independent oversight body in a report. The last caretaker government approved a financial reporting ordinance, however it was not approved by parliament later on. In 2012, a financial reporting law was proposed by the concerned community. After three years, the long awaited the law has been passed.

DSE and CSE introduced new Listing Regulations

Country’s two Stock Exchanges recently introduced new listing regulations. The new regulation will be known as Dhaka Stock Exchange (Listing) Regulations, 2015 and Chittagong Stock Exchange (Listing) Regulations, 2015.

Both the regulations of (DSE and CSE) have almost similar terms and conditions. Under the new regulations, any public offer must be approved by the Exchange first. Exchange will review the application and may require additional disclosure, information, documents, certification or clarification. Once satisfied, the Exchange will submit its recommendation to Bangladesh Security Exchange Commission for their approval.

Bangladesh gets its first Private Equity, Venture Capital financing regulations

Bangladesh Securities and Exchange Commission (BSEC) by a notification on June 22, 2015 introduced the regulation. Previously there was no regulation regarding Private Equity and Venture Capital financing in Bangladesh. The rules called Bangladesh Securities and Exchange Commission (Alternative Investment) Rules, 2015 (the Rules) became effective from June 22, 2015.

Foreign owned companies exempted from going public

Foreign companies and the joint venture companies with foreign investment are exempted by Bangladesh Securities Exchange Commission from the requirement of converting into a public limited company when the paid-up capital exceeds BDT 40 crore and issuing initial public offering when the paid-up capital reaches BDT 50 crore.