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Business laws and regulations of Bangladesh

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.

On November 24, 2015, Bangladesh Bank issued a similar circular allowing the commercial banks to invest in such funds.

FI should follow the following guideline while investing in the non-listed special purpose funds:

1. The aggregate investment in such funds made by any FI shall not exceed 50 percent of its paid up capital.

2. The investment in such a single fund made by any FI shall not exceed 10 percent of its paid up capital or 20 percent of that particular fund, whichever is lower. [Read more…] about NBFI can invest in Alternative Investment Fund – Bangladesh Bank

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 The previous regulation was the Securities and Exchange Commission (Public Issue) Rules, 2006, which is now repealed.

Key highlights of the Rules

Application for IPO may be made on any of the following methods:-

  1. fixed price method, when offered at par value; or
  2. book-building method, when offered above par value.

The definition of “Eligible Investor” (the “EI”) has been expanded.

Now the EI means- [Read more…] about Public Issue Rules 2015 issued by Bangladesh Securities Exchange Commission

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).

According to the rules, scheduled banks will abide by the following conditions while investing in the above mentioned fund(s) –

1) The total investment in such fund(s) made by any scheduled bank shall be limited up to Tk. 2 (Two) billion. [Read more…] about Bangladesh Bank introduces new rules for investment in Alternative Investment Fund by banks

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.

Before the official translation, the only available English translation was the translation of the Heidelberg Bangladesh Law Translation Project.

Download: English translation of Bangladesh Securities and Exchange Commission Act, 1993.