Securities dealers permitted to open two additional consolidated client accounts

The securities regulator has allowed securities brokers to open two additional Consolidated Client Accounts (CCAs) to facilitate the management of investors’ funds deposited for investment purposes.

The Bangladesh Securities and Exchange Commission (BSEC) paved the way for maintaining two additional CCAs through a directive issued on Wednesday.

“Each stockbroker may open two additional CCAs in his name with any regular bank in the same manner as referred to in subrule (1) of Rule 6 of the Securities and Exchange Rules, 2020”, said the BSEC directive.

The securities regulator said the decision was made in the interest of investors and the development of the securities market.

In accordance with the rules, securities brokers maintain a CCA only for the deposit of money received from and for, and the payment of money to and for, clients.

The account is opened with any regular bank with indication of the exchange(s).

In another directive issued on Tuesday, the securities regulator also revised the qualification criteria for independent scrutineers for the annual general meeting (AGM) or extraordinary general meeting (EGM) of listed companies.

According to the BSEC guideline, the independent scrutineer appointed to authenticate the due process of election and the detailed information on the results of the vote must have the qualification of public accountant, cost and management accountant or chartered secretary.

According to the existing criteria, the scrutineer must have the qualification of chartered accountant and chartered secretary.

Apart from the independent scrutineer, the election due process and detailed information about the voting results can also be authenticated by the exchanges.

[email protected]

Dolores W. Simon