Financial Institution ACT and Security Exchange, 1993.

FINANCIAL INSTITUTION ACT, 1993
Dr. Bandana Saha Director General, BIBM
FINANCIAL INSTITUTION LICENCE, ETC.
4. Licencing of financial institution.

(1) No person shall carry on financing business in Bangladesh unless he holds a licence of financial institution issued by the Bangladesh Bank.
(2) Every financial institution in existence shall, before the expiry of three months from the date of commencement of this Act, apply in writing to the Bangladesh Bank for a licence under this section: Provided that nothing in sub-section (1) shall be deemed to prohibit a financial institution in existence on the date of commencement of this Act, if(a) its application considerations; under this section remains under
(b) Bangladesh Bank has not informed by notice that licence shall not be granted to it.
(3) Before issuing licence under this section, the Bangladesh Bank has to be satisfied on the following matters of the proposed financial institution, namely:
(a) (b) (c)
financial condition; characteristics of the management; adequacy of the capital and earning prospect;
(d) the objectives as specified in the memorandum of Association.
13. Acknowledgement of deposit. Where a financial institution has accepted money from any person as a deposit, it shall forthwith issue to that person a document which evidences the indebtedness of the institution in respect of that deposit. 14. Restrictions on credit facilities, etc. (1) No financial institution shall a) accept any deposit which is repayable on demand by cheque, draft or order drawn by the depositor;
b) deal in gold or foreign exchange of whatever kind;

c) grant to any person, firm, corporation or company or to any group of companies or persons which such person, firm, corporation or company is able to control or influence any credit facilities in excess of 30% of the capital funds or, with the approval of the Bangladesh Bank, in excess of 100% of the capital funds of the financial institution;
d) grant loans which exceed 30% of its total credit facilities or such other percentage as the Bangladesh Bank may from time to time determine; or e) grant unsecured advances, unsecured loans or unsecured credit facilities which in the agregate and outstanding at any one time exceed 10% of the paid up share capital and reserves of the financial institution to any firm in which any of its directors, whether jointly or severally, has any interest. f) advance, loan or allow credit facilities as mentioned clause (e) to any persons or group of persons referred to in that clause exceeding five lacs taka.
18. Power of the Bangladesh Bank to determine certain matters.

The Bangladesh Bank may, by order, determine the following matters, namely: the maximum rates of interest that financial institutions shall pay on different types or classes of deposits; the maximum amount that financial institutions may receive from any person; the maximum repayment periods for loans granted by financial institutions; the maximum amount of loans or advances which financial institutions may grant to any person or class of persons; the reserves to be maintained with the Bangladesh Bank; and any other matter of public interest or financial policy.
a. b. c. d. e. f.
MINIMUM LIQUID ASSET
19. Holding of liquid assets.

1. Every financial institution all maintain a liquid assets as may be fixed by the Bangladesh Bank from time to time. 2. For the purpose of this section, "liquid assets" means all or any of the following, namely: a. notes and coins that are legal tender in Bangladesh; b. net balances at banks in Bangladesh; c. net money at call in Bangladesh; d. Bangladesh Treasury bills; e. other assets that the Bank may prescribe
SECURITIES AND EXCHANGE

COMMISSION (SEC)
ESTABLISHED ON 8TH JUNE 1993 UNDER THE SECURITIES AND EXCHANGE COMMISSION ACT, 1993, SEC IS COMPOSED OF A CHAIRMAN AND FOUR FULL TIME MEMBERS. THE GOVERNMENT APPOINTS THE CHAIRMAN AND MEMBERS OF THE COMMISSION.
OBJECTIVES OF SEC
(a) PROTECTION OF INTEREST OF INVESTORS IN SECURITIES

(b) DEVELOPMENT OF SECURITIES MARKET. (c) ENSURING PROPER ISSUANCE OF SECURITIES AND COMPLIANCE OF LAW RELATING TO SECURITIES.
MAIN FUNCTIONS OF SEC (a) REGULATING THE BUSINESS OF STOCK EXCHANGE OR ANY OTHER SECURITIES MARKET. (b) REGISTERING AND REGULATING THE BUSINESS OF STOCKBROKER, SUB-BROKER, SHARE TRANSFER AGENTS, BANKERS AND MANAGERS TO ISSUES, TRUSTEE OF TRUST DEEDS, REGISTRAR TO AN ISSUE, UNDERWRITERS, PORTFOLIO MANAGERS, INVESTMENT ADVISERS AND OTHER INTERMEDIARIES IN THE SECURITIES MARKET. (c) REGISTERING, MONITORING AND REGULATING OF COLLECTIVE INVESTMENT SCHEMES INCLUDING ALL FORMS OF MUTUAL FUNDS. (d) PROMOTING MONITORING AND REGULATING ALL AUTHORIZED SELF REGULATORY ORGANIZATIONS IN THE SECURITIES MARKET.
(e) PROHIBITING FRAUDULENT AND UNFAIR TRADE PRACTICES RELATING TO SECURITIES OR IN ANY SECURITIES MARKET.
(f) PROMOTING INVESTORS EDUCATION AND PROVIDING TRAINING OF INTERMEDIARIES OF THE SECURITIES MARKET (g) PROHIBITING INSIDER TRADING IN SECURITIES (h) REGULATING SUBSTANTIAL ACQUISITION OF SHARES OF STOCK AND TAKE-OVER OF COMPANIES. (i) CALLLING FOR INFORMATION OR UNDERTAKING INVESTIGATION AND INSPECTION, CONDUCTING INQUIRIES AND AUDIT OF ANY ISSUER OR DEALER OF SECURITIES, THE STOCK EXCHANGES AND INTERMEDIARIES AND ANY SELF REGULATORY ORGANIZATION IN THE SECURITIES MARKET.
(j) COMPILING, ANALYSING AND PUBLISHING INDICES ON THE FINANCIAL PERFORMANCE OF ANY ISSUER OF SECURITIES. (k) CONDUCTING RESEARCH AND PUBLISHING INFORMATION FOR THE ABOVE PURPOSE.
Thank You.

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Financial Institution ACT and Security Exchange, 1993.

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FINANCIAL INSTITUTION ACT, 1993

Dr. Bandana Saha Director General, BIBM

FINANCIAL INSTITUTION LICENCE, ETC.

4. Licencing of financial institution.

(a) (b) (c)

(d) the objectives as specified in the memorandum of Association.

b) deal in gold or foreign exchange of whatever kind;

18. Power of the Bangladesh Bank to determine certain matters.

MINIMUM LIQUID ASSET

19. Holding of liquid assets.

SECURITIES AND EXCHANGE

(a) PROTECTION OF INTEREST OF INVESTORS IN SECURITIES

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