Any Person shall be eligible for registration as a Depository Participant under these regulations, if –
1) the applicant belongs to one of the following categories, viz. :-
- a financial institution as defined in The Financial Institutions Act, 1993 (XXVII of 1993);
- a bank company as defined in The Bank Companies Act, 1991(XIV of 1991);
- an insurance company as defined in The Insurance Act, 1938 (IV of 1938);
- any Company incorporated under the Companies Act 1994 (XVIII of 1994) or any statutory organization established or formed under any other law;
- any Clearing Corporation, Stock Exchange Clearing House as approved by the Commission;
- any corporate stock dealer, stock broker, merchant banker, asset manager, custodian or any other capital market intermediaries, registered with the Commission.
Provided that, in the case of stock-dealer or stock-broker, his minimum capital shall have to be Taka twenty-five lac paid in cash, of which at least 75% shall be maintained as net worth at all times:
Also provided that, in the case of stock dealers or stock brokers wishing to be Trading Participants, the above condition shall not apply:
Provided further that, in the case of Stock Dealers or Stock Brokers the requirement of being a corporate entity mentioned in Regulation 28, Sub Regulation (1) (f) shall be applicable subject to the relevant provisions of the Securities and Exchange Commission (Stock Dealer, Stock Broker and Authorized Representatives) Rules 2000;
- any other institution as specified by the Commission from time to time in this regard; and
2) the applicant has the infrastructure, security system and proper manpower as specified in the Bye-Laws of the Depository.
Participants are divided into the following categories:
- Trading Participant
Only stock dealers or stock brokers shall be participants of this category and shall, apart from operating their own Accounts, operate Clearing Accounts to settle Stock Exchange transactions;
- Full Service Participant
Participants of this category shall operate their own Accounts, Clearing Accounts and the Accounts of the investors;
- Custody Participant
Participants of this category shall, apart from their own accounts, operate Custody Accounts of their customers and Clearing Accounts of stock brokers or stock dealers;
- Settlement Agent Participant
Participants of this category must be approved by the Commission and shall operate Accounts for providing services relating to settlement of Stock Exchange transactions only on behalf of stock brokers or stock dealers registered with the Commission.
Registration of Depository Participants (DP)
To Register as a Depository Participant:
- an application shall be made to the Commission in the form as prescribed in Schedule-'1' through the Depository along with the recommendation of the Depository registered with the Commission;
- the said application shall be attached with all documents and information mentioned in the Form and a bank draft or a pay order as fee payable in favour of the Securities and Exchange Commission in the amounts stated below:
In the case of Trading Participants -- Tk. 5,000/- per Year
In the case of Custodian Participants -- Tk. 50,000/- for 5 Years
In the case of Other Participants -- Tk. 10,000/- per Year
- upon the receipt of an application, the Depository shall fill in the relevant portion of the application and submit it to the Commission along with the bank draft or pay order within seven working days;
- if the Depository, for any reason, decides that the application is not fit to be recommended to the Commission for registration, it shall inform the applicant within seven working days in writing giving reasons thereof and a copy of it shall be sent to the Commission simultaneously along with the draft or pay-order received.
Provided that, upon removal of the reasons for which the application was not recommended to the Commission, the applicant may resubmit his application, and in that case he will not have to pay the fee again.
- A Certificate of Registration must first be obtained from the Commission to act as a CDBL Participant.
- Stock Brokers applying to act as Full Service Participants are required to have a minimum capital of Tk 25 lac in cash of which at least 75% shall be maintained as net worth at all times.
- All CDBL Participants must meet the technical and performance requirements to the reasonable satisfaction of CDBL. This will be assessed by:
- the applicants demonstrated ability to communicate reliably with CDBL in accordance with CDBL User Manual as demonstrated during precommencement testing; and
- where applicable, the applicant has such accounting, settlement and recording systems as are necessary for the purposes of the applicant's existing and anticipated settlement operations;
- the applicant has adequate office space for CDBL operations;
- the applicant employs or retains such personnel familiar with these Bye Laws and capable of carrying out Instructions as are necessary to allow the applicant to perform its obligations in accordance with these Bye Laws and generate, receive and process Transactions and obtain reports in accordance with the CDBL User Manual.
Applications for Admission as a CDBL Participant
- An applicant for admission as a CDBL Participant shall:
- lodge a completed Application for Registration as Depository Participant as specified in Annexure C with pay order / bank draft for Tk 5,000 (Trading Participants) or Tk 50,000 (Custodian Participant) or Tk 10,000 (all other Participants) made payable to the Commission;
- lodge a completed CDBL Participant Admission Form as specified in Form 01 with CDBL;
- lodge a pay order / bank draft for the relevant fees, security deposit and / or such other sums of monies payable to CDBL as specified in the Fees and Deposits Schedule attached as Annexure A;
- CDBL may require an applicant for admission to CDBL as a CDBL Participant to provide CDBL with any additional information in relation to the application which CDBL thinks necessary for the consideration of the
- CDBL may seek information from persons other than the applicant to the extent that CDBL thinks necessary in considering whether to process an application.
- Subject to any need to disclose information in order to seek other information under Bye Law 5.3.3 above, or unless disclosure is required by law, CDBL shall maintain the confidentiality of each application and information contained in or supplied in connection with an application