This document summarizes key securities laws in Bangladesh and services provided by brokerage houses. The main securities laws discussed are the Securities and Exchange Ordinance (1969), Securities and Exchange Commission Act (1993), Depositories Act (1999), Companies Act (1994), Trusts Act (1882), Insurance Act (1938), Bank Company Act (1991), and Financial Institutions Act (1993). It then describes various services offered by BRAC EPL Stock Brokerage Limited, including equity trading, funds transfer options, depository services, and services tailored for non-resident Bangladeshis and female investors.

1. Assignment
On
Securities Laws and Services of Brokerage Houses
Course Title: Investment Banking
Course Code: BI-405
Submitted To:
Mr. Md. Abu Bakkar Siddik
Assistant Professor
Department of Banking and Insurance
University of Chittagong
Submitted By:
Fatema Khatun Fayza
ID: 16306015
Session: 2015-2016
BBA, 7th Semester
Department of Banking and Insurance
University of Chittagong
Date of submission: 04.04.2019

2. Contents
1. The Securities and Exchange Ordinance, 1969
2. Securities & Exchange Commission Act, 1993
3. Depositories Act, 1999
4. Companies Act 1994
5. The Trusts Act, 1882
6. Insurance Act, 1938
7. Bank Company Act. 1991
8. Financial Institutions Act, 1993
9. Anti-Money-Laundering Act, 2002
10. Services of Brokerage House
11. References

3. Securities Laws
There are some basic laws that cover the securities market are:
Securities and Exchange Ordinance, 1969
This Ordinance made by the President which was published for general information:
An Ordinance to provide for the protection of investors, [regulations of capital markets and issue] and
dealing in securities.
In this Ordinance some definitions of financial institutions, intermediaries of security market, securities
and stock exchange are given. There are some sections for issue of capital. It is included that no stock
exchange can operate without registrations under this Ordinance and also described conditions for
registration, eligibility for registration, how registration can be cancelled; restrictions on dealing in
securities and procedure for listing of securities. Further regulation of issuers, prohibitions and
restrictions; procedure for enquiries, orders, appeals and misconduct on which penalty will be imposed
has been described.
Securities and Exchange Commission Act, 1993
This act was made considering the importance and necessary for establishing a commission by the name
of Bangladesh Securities and Exchange Commission for the purpose of providing protection of the
interests of investors in securities, the development of the securities market and for matters connected
therewith. This act includes:
1. Definitions of commission, commissioner, chairman, fund, rule, regulation, member and
permanent member.
2. Establishment of the Commission.
3. Head office, etc.
4. Composition of the Commission.
5. Disqualification of the Chairman, etc.
6. Meetings of the Commission.
7. Functions of the Commission.
8. Appointment of officers and employees.
9. Duties and responsibilities under Act XXIX of 1947 and Ord. XVII of 1969, etc.
10. Fund of the Commission.
11. Registration certificate.
Apart from all of this how annual budget statement, accounts & audit and reports of commission will
be made has been described. Also power of commission, penalty for commission and power of the
government to give directions are given.
Depository Act, 1999
It is an act made to provide for regulation of depositories which established for the purpose of
maintenance of securities and effecting and recording transfer thereof. This act includes:

4. 1. Definitions of act, depository and terms related to depository.
2. Act to override other laws and Registration of depository.
3. Introduction of depository system.
4. Maintenance of securities in dematerialized condition, etc.
5. Application of section 158 of the Companies Act.
6. Effectiveness of transfer of securities through book entry system.
7. Securities to be maintained in the depository register.
8. Transfer of securities, Indemnity, Enquiry and Penalty.
9. Duties, etc. of depository participants, issuers and account holders.
10. Prima-facie evidence of any matter included in a depository.
11. Power of the commission to issue certain orders, to make regulations, to make bye-laws
and to grant exemption in certain cases.
12. Taking over of management and Removal of difficulties.
Companies Act, 1994
It is an act made to consolidate and amend the law relating to companies and certain other associations.
Here how company will form, documents needed for a company, rules relating to partnership and
company name are given. This act also includes rules relating to shares, management & power of
company, shareholders right and meeting etc.
Trust Act, 1882
It is an act made to define and amend the law relating to private trusts and trustees. It includes:
1. Purpose of creating trust, property included in trust, who may create trust and who may be
Beneficiary & Trustee.
2. Duties and liabilities of Trustees.
3. Rights and powers of Trustees.
4. Disabilities of Trustees.
5. Rights and liabilities of the Beneficiary.
6. Vacating the office of Trustee.
7. Extinction of trusts.
8. Certain obligations in the nature of trusts.
Insurance Act, 1938
It is an act made to consolidate and amend the law relating to the business of insurance. It includes:
1. Provisions applicable to insurers.
2. Investment, loans and management of insurers.
3. Power of Chief Controller of Insurance to order investigation, power of investigator and
insurers.
4. Assignment or transfer of policies and nominations.
5. Commission and rebates and licensing of agents.
6. Special provisions of law.
7. Management by administrator.
8. Special provisions relating to external companies.

5. 9. Provident societies.
10. Rules for Mutual Insurance Companies and Co-operative Insurance Societies.
Bank Company Act, 1991
An act made to make provisions for banking companies. It includes act to override articles,
memorandum, regulations of minimum paid up capital, paid-up capital, subscribed capital, authorized
capital and voting rights of share-holders. There are some restrictions on loans and advances, respite of
loans and opening of new & transfer of existing business etc. Further some rules are given relating to
the operations of bank companies and reserve needed to be kept by bank.
Financial Institution Act, 1993
An act made to provide for the granting of licenses to financial institutions, their control and to make
other incidental provisions relating thereto. It is included that a license must have to run a financial
institution issued by the Bangladesh Bank and financial institution shall maintain reserve fund, display
a copy of its balance sheet and follow business rules. Every financial institution shall maintain such
assets as the Bangladesh Bank may determine from time to time. Further regulations for inspection,
submission of statement of accounts and audit of accounts and punishments for offences are given.
Anti-Money Laundering Act, 2002
With a view to preventing money laundering this act is made where responsibility and power of
Bangladesh Bank in preventing Money Laundering has been described. Court was established in order
to prevent money laundering. Punishments for money laundering, violation of court orders and
obstruction in enquiry are described.
Services of Brokerage Houses
Many intermediaries are involved in capital market and provide services to individuals, firms and
others. Brokerage Houses are one of them. What services Brokerage Houses will provide it depends on
them but Brokerage Houses must follow the rules of Bangladesh Securities and Exchange
Commission (BSEC) in case of providing services. To discuss the services of Brokerage Houses
BRAC EPL Stock Brokerage Limited is selected and services of it are described below:
Equity
BRAC EPL Stock Brokerage Limited is one-stop capital markets investments solution provider. It has
developed a dynamic team of relationship managers, traders and analysts to provide holistic,
personalized services. Services include-
 Opening Beneficiary Accounts(BO) for individuals
 Providing margin lending
 Trading for institutional investors, both domestic and international
 Providing stop-gap liquidity support, especially to foreign institutional investors
 Assisting to create and follow an investment strategy
 Providing corporate finance advisory services
 Facilitating investment by the Non-resident Bangladeshis (NRBs)

6. BESL Probashi Biniyog
Probashi Biniyog provides Non-Resident Bangladeshis (NRBs) the opportunity to invest in the
Bangladeshi Capital Market through a Beneficiary Owner's (BO) account which will be funded by a
Non Resident Investor's Taka Account (NITA). Both BO account and NITA will be held with
BRAC Bank Limited. Services include-
 NRBs can invest into the Bangladeshi Capital Market from anywhere in the world
 Arrange purchases and sales of securities of your choice through BRAC EPL Stock Brokerage
Limited.
 100% repatriation of capital, dividend and investment profits
 NRBs can apply for IPOs as well as buy and sell shares in the Secondary Market through BRAC
Bank Limited. They can use e-mail, fax or phone to issue trade orders to BRAC Bank Limited
BESL Aparajita
Aparajita is a Specialized Booth for female investors. Aparajita provides a unique platform targeted
specially for females. They will have access to a female only trading booth, designed to enhance and
provide an ambient atmosphere. The female investors will also have exclusive professional female
service manager and traders to execute trades efficiently. Services include-
 Female only trading booth
 Exclusive female service manager and traders catering to trades
 Equity research from international award winning research team
 Regular Portfolio report
 Mobile app service
 Free Wi-Fi zone
Full DP Service
BRAC EPL Stock Brokerage Limited is a Full-service depository participant at Central Depository
Bangladesh Limited (CDBL) and provides the all necessary services. Services include-
 BO account Open and Maintain
 Dematerialization (a process by which physical certificates are converted into electronic form)
 Rematerialization (a process by which electronic form are converted into physical certificates
upon account holders request)
 Transfer
 Transmission
 Pledge
 Unpledged
 Change of Ownership
EFT/BFTN/RTGS

7. BRAC EPL Stock Brokerage Limited provides the fastest and most comfortable way of fund transfer
to investors in several ways.
 BEFTN: Bangladesh Electronic Fund Transfer Network
 EFTN: Electronic Fund Transfer Network
 RTGS: Real Time Gross Settlement.
Retail Brokerage Service
Any individual who is a Bangladeshi national above the age of 18 or any Bangladeshi Institutions
qualify as a Local Investor. Services given to Local Investors are-
 BO A/C Opening
 Depository Services
 Trading Services
 Client Services
NRB Brokerage Service
BRAC EPL will provide Non-Resident Bangladeshi's (NRB) the option to subscribe for IPO and trading
shares in the secondary market through BRAC Bank/HSBC.
Features
The features of the product are as follows:
 NRBs can invest into the Bangladeshi Capital Market from anywhere in the world
 Custodian Service will be provided by HSBC/BRAC Bank
 100% repatriation of capital, dividend and investment profits
 NRBs can apply for IPOs as well as buy and sell shares in the Secondary. They can use e-mail,
fax or phone to issue trade orders to BRAC Bank Limited
Who are eligible?
All Bangladeshi nationals (Bangladeshi passport holders) who are working/living abroad can open
NITA. Foreign passport holders who are originally from Bangladesh are also eligible to open an
account.
References
1. www.sec.gov.bd
2. www.bdlaws.minlaw.gov.bd
3. www.bb.org.bd
4. www.cdbl.com.bd
5. http://www.bracepl.com/brokerage