The Bangladesh Securities and Exchange Commission on Monday asked brokerage houses to distribute interest income earned from consolidated customer accounts (CCA) among eligible investors who maintained a minimum of Tk 1 lakh balance in the CCAs for at least one month and earned a minimum of Tk 500 interest income.
The BSEC on Monday issued a directive in this regard and asked the Dhaka Stock Exchange, the Chittagong Stock Exchange and all stockbrokers to calculate the interest income for customers who earned from the bank account(s) opened for consolidated customers’ accounts and distribute the interest income among the customers.
If an investor has had a minimum credit balance of Tk 1 lakh in a customer’s account continuously for at least for one month in a financial year, and the interest income accrued for a customer’s account in a financial year reached least Tk 500, the investor will be eligible for receiving the interest income from the brokerage house, the directive said.
While calculating the interest income for distribution among customers’ account(s) in the following manner, a stockbroker will deduct the annual account maintenance expenses, bank charges, and other charges from the annual gross interest income earned in the consolidated customers’ account (CCA), it said.
The effective rate of interest income earned from the CCA must be calculated by the annual net interest income distributable to the customers divided by the weighted average credit balance (day-end basis) of the CCA for the year and multiplied the results with 100, the directive said.
A stockbroker must distribute the net interest income to every eligible customer within 30 days of the end of each financial year, it said.
Every stockbroker must operate and maintain the consolidated customers’ account (CCA) as per the provisions of Rule 6 of the Securities and Exchange Rules, 2020, the BSEC directive read.
According to Sub-rule (1) of Rule 6 of the Securities and Exchange Rules, 2020, registered stockbrokers are required to distribute the net interest income earned (after adjusting bank charges, if any) from the bank account(s) opened for consolidated customers’ account to the customers proportionately and if any undistributed interest income is left, that shall be transferred to the Investors’ Protection Fund of the exchange(s) within 30 days of the end of each financial year.
In case of any delay in transferring the aforesaid interest income to the Investors’ Protection Fund of the exchange(s), an additional 2 per cent interest per month shall be charged on such income, which shall also be transferred to the Investors’ Protection Fund, it said.
No money of the CCA could be deposited in any fixed deposit account, the new directive said.
Midway News Team
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