WHEREAS it is expedient to frame regulations for establishing a Fund for the protection of the investors of a defaulting member of the Chittagong Stock Exchange Ltd. (CSE);
Now, therefore, in exercise of the powers conferred by section 34 of the Securities and Exchange Ordinance (Ordinance XVII of 1969), the Chittagong Stock Exchange Ltd. makes, with the approval of the Securities and Exchange Commission, the following regulations, namely: -
These Regulations shall be called the “ Chittagong Stock Exchange Investors’ Protection Fund Regulations, 1999”.
The Board of Trustees shall maintain proper accounts of the Fund and these shall be prepared and maintained in accordance with these Regulations.
Participation to the Fund is compulsory for each member of CSE till he ceases to be a member of CSE for any reason whatsoever.
The Board of Trustees shall invest all monies of the Fund in such manner as may be authorised by law for the time being in force for investment of public charitable trust funds.
Any loss or diminution in value of the investments of the Fund from whatever cause arising, not being due to the gross neglect or willful default or fraud of the Trustees, shall be borne by the Fund and the Trustees shall incur no responsibility or liability by reason or on account thereof.
The CSE and the members shall not be entitled to any repayment or refund or withdrawal or withheld in of their due contribution to the Fund for any reason whatsoever.
The Fund shall not be available for claims in respect of repayment of deposits or loans placed with or given to a defaulter member by any person or for any other transaction not connected with the purchase or sales of shares of securities listed with the CSE.
An investor is entitled to apply to the Board of Directors for reconsideration of the decision of the Board of Trustees within three months of the service of decision of disallowance or partial disallowance of any claim and the decision of the Board of Directors shall be final and binding and the Board of Trustees shall act accordingly.
The rejection or partial acceptance of any claim by the Board of Trustees or as the case may be, the Board of Directors, the grant of any compensation to a claimant investor shall not preclude or debar such investor to pursue his claim for dues against the defaulting member in any court of law or otherwise howsoever or other legal action on other grounds or causes of action of whatsoever nature, subject, however that the net claim of any such claimant investor against a defaulting member shall stand reduced to the extent of the compensation received by him from the fund.
The Fund shall be a discretionary Fund and the Board of Trustees shall be under no legal obliged to collect the debts of a defaulting member or to make payments from the Fund as mentioned herein above.
The contribution of a Member to the fund shall not be a debt due from the Fund and no Member shall be entitled to transfer or assign in any manner his contribution to the Fund.
The Trustees shall not be entitled to any remuneration but shall be entitled to charge to the Fund all expenses of management and administration of the Fund including fees of auditors, legal advisers or other professional advisers and staff salaries, wages and all related costs, charges and operational expenses to which the Trustees shall be put to in connection with the management of the Fund or any legal claim thereon by any reason whatsoever.
The Trustees shall be indemnified by the Fund from and against all actions, proceedings, losses, damages, claims, liabilities, costs, charges and expenses in connection with the Fund or the management and administration thereof or any dealings therewith provided that the same shall not arise by reason of their gross neglect or willful default or fraud or of personal reason.
The Board Trustees shall furnish a quarterly report on the Fund and affairs of the Trustees to SEC and CSE within one month of the end of each quarter.