1. RESIGNATION

• A member may resign from the Exchanges by giving two month's notice in writing to the Chief Executive of the Exchange of his intention so to resign. The Chief Executive on receipt of such notice shall forthwith post it on the Notice Board for a period not less than one month for any objections that may be raised and received by the Chief Executive in writing. On the expiration of these one month, the CEO shall place the resignation with any objections received before th Board who may accept the resignation at their discretion. The Board shall not be bound to give any reason for their refusal to accept any resignation.
• On the acceptance of the resignation of a Member by the Board, such Member shall cease to be a member of the Exchange. His name shall be removed from the Register of Members of the Exchange and his card shall become the property of the Exchange.

2. EXPULSION & SUSPENSION OF MEMBERS

The Board may by a resolution expel any member of the Exchange -

• False Declaration:Who has in the opinion of the said Board made a false declaration in his application for admission to the membership.
• Criminal Offence:Who has been convicted of a criminal offence which in the opinion of the said Board, renders him unfit to be a Member of the Exchange.
  Provided that such resolution shall be passed by a majority of three-fourth of the Members present at a meeting of the Board at which not less than one-half of all the Members of the Board shall have been present.

3. MEMBER OF AN ASSOCIATION

• Who becomes Member of, or subscriber to, or becomes shareholder or debenture-holder in any institution, association, Company, or corporation, or is directly or indirectly interested in such an institution establishing and functioning within the territorial limits of Chittagong where dealings in stocks, shares, bonus vouchers and like securities are carried on.
• Explanation : For the purpose of this rule five or more members of the Exchange or their employees making any bid or offer or entering into any contract or transaction in stocks, shares and like securities before or after business hours or during holiday or at any place other than the floor of the Exchange shall be deemed to be members of an association other than the Exchange.

4.FINE AND PENALTIES

The Board shall by a resolution suspend any Members of the Exchange, who within fifteen days after notice in writing has been served upon him by the Chief Executive of the Exchange fails to pay any subscription or fine or penalty imposed upon him by the said Board in accordance with any Rule for thetime being in force and the said Board shall expel any such member who within a further period of thirty days fails to pay any such subscription or fine or penalty or duesthe Exchange.

5. Suspension of a Member

• Without prejudice to the scope of the power of suspension vested in the Board, a Member may also be suspended in the following circumstances: -
  • When, in the opinion of the Board, the Member conducts business in a manner prejudicial to the Exchange by making purchase or sale, or offers of purchase or sale, of securities for the purpose of upsetting the equilibrium of the market or bringing about a condition in which prices will not fairly reflect market values.
  • If, in the opinion of Board, the Member is in such financial condition that it should not be permitted to continue its business in consideration of safety either to its customer, creditor or to the Exchange.
  • Where a Member is reasonably suspected of having conducted itself in such a manner which calls for disciplinary action and/ or an investigation is being conducted into the affairs of the Member for this purpose.
    The Board shall, under no obligation whatsoever, be liable to compensate a Member suspended under these Regulations even if the investigation subsequently vindicates the conduct of such Member.
• The suspension shall continue until the Member has been allowed by the Board to resume its business on its paying such deposit or doing such act or otherwise complying with the requirements or to fulfilling the conditions for doing business.
• A member shall be allowed to be heard by the Board, in addition to an opportunity for submitting its explanation, before being suspended. But, in all cases, decision of the Board shall be final and binding upon such Member.

6. RECONSIDERATION OF RESOLUTION OF EXPULSION

The Board may on its own motion or on an application recommended bythree Members of the Board or at least 5% of the members of the Exchange reconsider and may cancel, revoke or modify such resolution. Such, resolution shall not be deemed valid or come into force unless it is passed by a majority of three-fourth of the members present at a meeting of the said Board specially summoned for the purpose at which not less than one-half of all the members of the said Board shall have been present and is confirmed by a majority of the Members of the said Board at subsequent meeting specially summoned.

7.NO ACTION MAINTAINABLE AGAINST NOTICE OF EXCHANGE

The Board may in their absolute discretion and in such manner as they think fit notify or cause to be notified to the Members of the Exchange or the public any resolution expelling or suspending a Member of the Exchange. No action or other proceeding shall under any circumstances be maintainable by by the member expelled or suspended against the Exchange or the said Board or any member thereof or any officer or staff of the Exchange for their publication or circulation of such notification.

8.CREDITORS OF EXPELLED OR SUSPENDED MEMBERS :

The expulsion or suspension of a member shall not affect the right of his creditors.

9. SUSPENSION/REINSTATEMENT/EXPULSION

• A suspended member will not during the tenure of his suspension exercise or enjoy any of the rights or privileges of Membership of the Exchange.
• Reinstatement: An application of a suspended member for reinstatement shall be considered by the Board in accordance with the rules for the time being in force.
• Business for or with person expelled: A Member shall not, without the special permission of the Board carry on business for or with a person who has been suspended or expelled from the Exchange.

10. EXPULSION ENTAILS FORFEITURE OR CARD, LIABILITIES TO SUBSIST

When a member of the Exchange is expelled, his Card or right of Membership and all his rights and privileges as member of the Exchange including any right to the use of or any claim upon or any interest in any property or funds of the Exchange, shall be forfeited to and become the property of the Exchange but any liability of any such members to the Exchange or to any member of the Exchange or to any creditors shall continue and remain unaffected even by his expulsion.

11. DISPOSAL OF FORFEITED CARD AND PROCEEDS THEREOF

A Card or right of membership which under any rule for the time being in force is forfeited to or vests in the Exchange, shall belong absolutely to the Exchange free of all rights, claims or interest of such member and the Board shall be entitled to deal with or dispose of the Card as the said Board may think fit. If the said Board sell such card, the sale proceeds thereof shall in the first place be applied to satisfying of the liabilities of the members, whose card is sold, to other members in respect of any contract made subject to the rules of the Exchange and the balance thereof shall be paid into the funds of the Exchange provided always that the Exchange may in their absolute discretion by resolution passed at a Board meeting direct such a balance to be disposed of or applied in such other manner as they may think fit.
However the summary of such matters to be reported to the Members annually in AGM

12. AUTHORISED ASSISTANTS

• The Board shall from time to time fix the number of Authorised Assistants, a member may be allowed to employ. The Authorised Assistants shall be allowed to be appointed upto 31st December each year and thereafter fresh applications will have to be made by the members for the continuation of such Authorised Assistants or otherwise.
• Members as authorised assistantsMembers of the Exchange may even be employed as Authorised Assistants in excess of the number permitted by this rule. A Member so employed shall not himself be entitled to employ authorised assistants in place/substitution of his such position as assistants.
• Admission to Authorised AssistantA member desirous of obtaining admission to the market for authorised assistants shall apply for the permission of the Board in such form as the said Board may from time to time prescribe.
• The employer shall pay to the Exchange an annual subscription of Tk.1,000 (One Thousand) or such higher fee as may be prescribed by the Board from time to time in respect of such authorised assistants employed by him. No such subscription shall be payable in respect of a member, who acts as an authorised assistant.

13. UNATUHORISED ASSISTANTS EXCLUDED FROM MARKET'

• An authorised assistant is entitled to admission to the market and the assistant, who is not authorised, is not so entitled.
• An application by a member to employ an authorised assistant who previously had been acting as assistant to another member must be accompanied by a clearance certificate (NOC) from such former employer Member.
• The Board of the Exchange, may in its sole and absolute discretion, dispense with the condition of production of a "No Objection Certificate (NOC)" required by Rule 13(b) and may permit any person to work as an authorised assistant of any member of the Exchange under special/plausible circumstances.

14. POWER OF AUTHORISED ASSISTANTS

• An authorised assistant, or a member acting as authorised assistant, can transact trade or business only on behalf of his employer. They shall not make bargains in his own name or in any name other than that of his employer or sign contract in his own name or in any other name save on behalf or on account of his employer.
• The Board shall expel immediately an authorised assistant or a member acting as an authorised assistant who contravenes the norms, regulations of the Exchange and the aforesaid rule or ethics.
• Member liable for bargains of authorised assistants A member shall be liable for all bargains made with other members in the market by any authorised assistant employed by him and he shall fulfil such bargains according to the Rules of the Exchange in the manner as if such bargains had been made personally by the member himself.

15. REGISTER OF AUTHORISED ASSISTANTS

The Exchange shall keep a register of authorised assistants and shall enter in such register the name of the assistant and the member who employs him, the date of the beginning and termination of his employment or the withdrawal, expulsion of or such suspension of his authorisation.

16. NOTICE OF AUTHORISATION - TERMINATION & WITHDRAWAL

A member employing an authorised assistant or terminating employment or withdrawing the authorisation of such assistant shall give a notice in writing to the Chief Executive of the Exchange, of the name of such assistant and the date of the beginning or termination of his employment or the withdrawal of his authorisation and the Chief Executive shall forthwith post the notice of such employment, termination or withdrawal upon the Notice Board of the Exchange and also publish such matters in the Exchange News for the Members and the Public.

17. UNDERTAKING FROM THE AUTHORISED ASSISTANTS

Members wishing to appoint or renew Authorised Assistants on the Exchange must furnish an Undertaking signed by their respective assistants as follows :

• I shall maintain strict discipline at all times in the Trading Hall and the premises of the Exchange.
• I shall do business on the Exchange in the name of and on behalf of my appointing member only. I shall not do any business on behalf of other members of the Exchange directly or indirectly as their constituent or on account of his constituents.
• I shall at all times abide by the Rules and regulations of the Exchange and will not act or indulge in any activities which might prejudice the fair name or the interest of the Exchange or my appointing member or other member.
• The said undertaking shall be counter-signed by the appointing member.

18. LIABILITY OF THE EMPLOYER TO CONTINUE UNTIL NOTICE

The Responsibility of a member for the bargains of his Authorised Assistant shall continue upto the day on which the notice of the termination of his employment or the withdrawal of his authorisation shall have been received by the Chief Executive of the Exchange.

A member may, on giving notice in writing to the Chief Executive of the Exchange and on payment of a fee prescribed by the Board, nominate substitute assistants to act temporarily in the absence of authorised assistant(s) for a period not exceeding 45 days.

19. ADMISSION DURING GOOD BEHAVIOUR

• Authorised Assistants shall be admitted to the market only during good behaviour and the Board or any Committee appointed by the Board may, by a resolution, in their absolute discretion refuse admission to the market of the Authorised Assistant(s) of any member and may at anytime, suspend, terminate, the right of admission of such assistants without assigning any reason whatsoever.
• Authorised Assistant(s) of defaulters or of Members who have been suspended or expelled shall be excluded from the market forthwith.
• However, the Member so affected may appeal to the Board or any Committee appointed by the Board for re-consideration on the said decision.

20. BADGES

• A Member and his Authorised Assistant(s) when in the market must wear a badge. No members or assistants without such badge shall be admitted into the market to transact business.
• Such badge shall be supplied by the Exchange at a price of Tk.100 each badge.

21. PENALTY FOR IMPROPER USE OF BADGE

• The Board shall expel or suspend any Member or Authorised Assistant who transfers his badge to any other person.
• When an assistant is expelled or suspended for any reason, his employer shall not be permitted to substitute an assistant in his place for a period not exceeding three months. However, the Board may on an application by the member for good reason may reduce the period to one month.

22. LOSS OF BADGE

A member shall notify forthwith the loss of badge to the Chief Executive of the Exchange who will issue another in its place on application by such member and on payment of Tk. 100 /- (One hundred) or such other higher sum as the Board may from time to time determine.

23. RETURN OF BADGE

A member who terminates or withdraws the authorisation of assistant(s) shall forthwith return the badge to the Chief Executive of the Exchange on the date of such termination or withdrawal.

A member who terminates or withdraws the authorisation of assistant(s) shall forthwith return the badge to the Chief Executive of the Exchange on the date of such termination or withdrawal.

24. MEMBERS CEASING TO DO BUSINESS

A member who has closed doing business in his own name shall not be entitled to employ any authorised assistant and shall forthwith return the badge of any such assistant(s) which may have been issued to him.

25. EXPELLED MEMBERS

• No Member shall, without the special permission of the Board, take into or continue in his employment in any capacity in any shares or securities business carried on by him, of a former Member who has been suspended or expelled.
• No Member of the Exchange is allowed to give to the press for publication any report on Stocks and Shares. Members of the Exchange may issue reports on stocks and shares only to their clients, companies and banks, but are debarred from general circulation of the same in any form.

26. REPORT OF VIOLATION OF RUTLES

Every member of the Exchange shall immediately report to the Chief Executive of the Exchange any violation by any Member of any rule of the Exchange which may come under his notice. Any report so made to the said Board or to the Chief Executive of the Exchange shall be deemed strictly privileged and confidential.

27. SUB-COMMITTEES

The Board shall every year in January elect from among the Members of the Exchange the following Sub-Committees:

• Arbitration Committee
• Defaulters' Committee
• Any other Committee(s)

The Board from time to time may increase or reduce the number of Members of any Sub-Committee(s) and they amalgamate or merge any of the above Sub-Committee(s) with any other Committee or Sub-Committees.

28. CHAIRMAN AND MEMBER-SECRETARY

A Sub-Committee shall, subject to article 5 of Articles of Association, immediately after its appointment elect from its own body its Chairman. It may also elect from its own body a Member-Secretary.

29. REMOVAL/RETIRMENT OF MEMBER

• Removal The Board may, for reason to be recorded, remove member of a Sub-Committee from such Sub-Committee.
• Retiring members All Retiring members of Sub-Committee shall be eligible for re-election for not more than two consecutive terms, unless specifically dispensed with by a special resolution of the Board.
• To continue office All retiring Members of a Sub-Committee shall continue in office until their successors are validly elected and/or co-opted by the Board.
• Casual vacancy A casual vacancy in a Sub-Committee shall be filled by the appointment of a member of the Exchange by the Board and a member so appointed shall retain office till the next election and shall be eligible for re-election for not more than two consecutive terms unless exempted by a special resolution of the Board.
• Leave and temporary appointment A member of Sub-committee who is likely to be absent from Chittagong for a period exceeding three months shall give intimation to the Member-Secretary of the Sub-Committee and such intimation shall be placed before the Sub-Committee in its next meeting. The Sub-Committee may thereupon either declare the seat of such member vacated, when such vacancy shall be filled by the Board in the manner provided in these rules or the Sub-Committee may appoint a member of the Exchange to act on the Sub-Committee in place of the absentee member. The member so appointed shall vacate office on the return to Chittagong of the absentee member. A member absenting himself from Chittagong for a period exceeding three months, without giving intimation, shall be deemed to have vacated his seat on expiry of three months period of absence.
  
  The Sub-Committee may from time to time determine its own quorum, provided that such quorum shall not be less than one-third of the total number of the members of the Sub-Committee.

30. ARBITRATION COMMITTEE

The Arbitration Committee shall consist of not more than 20 (Twenty) Members and not less than 10 (Ten) members. The Chairman or the Member-Secretary should preferably be drawn from the legal profession.

31. DISPUTE TO BE REFERRED TO ARBITRATION

Whenever any difference arises between members intense, or between any of them on the one hand and their constituent on the other hand or between any of the members on the one hand and their authorised assistants on the other hand and between authorised assistants on the one hand and their constituent on the other hand touching or in connection with the "trade" or a transaction therein, it should be referred to Arbitration and shall be dealt with as provided herein after.

• All claims, disputes, etc. arising out of transactions made subject to the rules of the Exchange which are not otherwise amicably settled shall be referred to the Arbitration Committee.
• The Arbitration Committee of the Exchange to whom the dispute has been referred shall appoint two Arbitrators by drawing lots from amongst the Members of Arbitration Committee of the Exchange.
• Lots shall be drawn from amongst the names of the Members whose names have not been so drawn in the lots previously. If, however, the names of all the members have been drawn in the lot once, then the names of all the members shall be included for drawing subsequent lots.
• The parties to the dispute may remain present at the time of drawing of lots.
• The Member whose name has been drawn in the lot shall be bound to act as an Arbitrator so long as he continues to be a Member of the Arbitration Committee of the Exchange.
• In case, if one or all the Arbitrators refuse, neglect or fail even to consider the dispute or give an Award within specified time fresh Arbitrators shall be appointed by the Arbitration Committee or any the Board.

32. APPLICATION FOR ARBITRATION

When a dispute which according to these rules must be referred to the Arbitration arises, any party to dispute may apply to the Arbitration Committee to enquire into and appoint arbitrators to arbitrate in the dispute. The applicant shall :

• Pay fee of at least Tk.100/- to the Exchange or the higher fee as to be determined by the Board from time to time.
• Deposit the cost of the applicable Stamp of the Award, if so directed by the Arbitration Committee.
• In case where he is not a member of the Exchange, shall give an undertaking to abide by all the Rules & Regulations of the Exchange in force for the Arbitration and shall furnish a bank guarantee or guarantee or security ( in money or moneys worth) for the due performance of the Award as may be asked for by the said Committee.

The Arbitration Committee may reject or dismiss any application if :

• The application is not otherwise in order or in accordance with the Rules & Regulations of the Exchange, or
• The applicant refuses, neglect or fails to comply with the provisions of any rules or regulations, or
• The applicant refuses, neglects or fail to carry out any direction issued by the Committee or the Board, or
• The subject in the dispute has arisen from a non-stock Exchange transaction or the transaction is otherwise illegal and not according to law.

33. APPOINTMENT OF ARBITRATORS

• Whenever any such dispute is referred to the Arbitration Committee, it shall be heard by two of its members acting as Arbitrators with reference to such dispute.
• NOTICE: The Member-Secretary of the Committee shall give both parties to the dispute not less than three days notice of the time and the place appointed for Arbitration.
• Both Parties PresentIf both parties to the dispute are present at the appointed time and place, the Arbitration shall proceed to hear the reference and to give the Award thereafter.
• "Ex-Parte" decision or the summary disposalIf the complainant is not present at the appointed time and place, the Arbitrators may hear and decide the dispute ex-parte, and if the party marking complaint is not present the Arbitrator may even dismiss the reference summarily.
• Remedies at LawThe Committee may decline to hear the dispute or may dismiss any case and refer the parties to their remedies at law and may itself so refer them upon the joint request of parties.

34. DISAGREEMENT BETWEEN ARBITRATORS

If the Arbitrators hearing a reference can not agree as to the Award to be made, they shall refer the dispute or such part thereof in respect of which they cannot agree to a third member of the Arbitration Committee, and the three members shall then together Arbitrate in the dispute and the award of any two of them shall be deemed to be the award in the Arbitration. The third Member should preferably be drawn from the legal profession.

35. LATE CLAIMS BARRED

The Arbitration Committee shall not take cognizance of any claim or dispute which shall not be referred to them within three months from the date when it arose.

36. APPEAL TO ARBITRATION COMMITTEE

• A party to a dispute who is dissatisfied with any award of the appointed Arbitrators may appeal to the Arbitration Committee against such award 15 days of the receipt by him of such award.
• Statement of ObjectionThe party so appealing shall state his objections to the award in writing and shall deposit with the exchange in cash the 25% of the full amount ordered to be paid in the award and a fee of Tk.200/- or a higher amount to be decided by the Board from time to time and shall annex to his appeal a certificate of the Exchange that such amount and fee have been deposited and the Arbitration Committee shall not entertain an appeal to which such certificate is not annexed.
• Certificate of payment When such certificate is annexed to the appeal, the Arbitration Committee shall itself, proceed to hear the appeal and Arbitrate in the dispute.
• Certain members may not Vote The members of the Arbitration Committee who have made any award against which an appeal is made to the said Committee, may attend the meetings of the said Committee at which the appeal is heard, but shall not be entitled to vote.

37. AWARD OF COMMITTEE FINAL IN CERTAIN CASES

• The award of the Arbitration Committee in a dispute shall be final and shall be deemed binding on the parties fo the dispute and upon their constituents.
• Appeal to BoardIf the sum involved in such dispute is Tk.5,000/- (Five Thousand) or more the party dissatisfied with the award of the Arbitration Committee may appeal against such award to the Board within 15 days of the award.
• Written Objections & Certificate A party appealing to the said Board shall state in writing the objections to the award of the Arbitration Committee and shall deposit with the Exchange in cash 50% of the full amount ordered to be paid in such award and a fee of Tk.300/- ( Three hundred) or such higher sum as the Board prescribes and shall annex with his appeal the certificate of the Exchange that such amount and fee have been deposited and the Board shall not entertain an appeal to which such certificate is not annexed.
• Decision of Board Final When such certificate is annexed to the appeal, the said Board shall proceed to hear the appeal and the decision of the said Board shall be deemed final and binding on the parties to the appeal and on the constituents of such members, as the said Board may from time to time decide or prescribe/specify.

38. MEMBERS INTERESTED NOT TO ATTEND

A party to a dispute who is the member of the Arbitration Committee or the Board shall not attend any meeting of the said Committee or the said Board at which enquiry into the dispute is made or at which an appeal is heard.

39. ADJOURNED MEETINGS

• There shall be no objection to an award of the Arbitration Committee or of the Board that meeting at which a dispute was enquired into or an appeal was heard was adjourned from time to time or that the enquiry was not completed or that the appeal was not finally heard at one meeting.
• There shall be no objection to an award of the Arbitration Committee or of the Board that the composition of the said Committee or Board changed during the enquiry of appeal.
  
  Provided, however, that no member of the Committee or the Board, as the case may be, who shall have not been present at majority meeting at which enquiry to the dispute was made or appeal was heard shall participate in giving the final decision.
• Three members of the said Committee of the Board shall be necessary to constitute a quorum for the purpose of the enquiry or appeal.
• In case the members of the said Committee or of said Board are equally divided, the Chairman shall be entitled to have a casting vote, as usual

40. SUMMARY DISMISSAL

• (a) If any member who is a party to a dispute and who has appealed against any award to the Arbitration Committee or the Board is not present at the time fixed for hearing the appeal, the said Committee or the said Board as the case may be, may dismiss the appeal summarily.
• (b) Appeal Ex-Parte
  If any member who is a party to a dispute and in whose favour or against an award has been made is not present at the time fixed for hearing the appeal against such award the said Committee or the said Board may proceed to hear the appeal ex-parte

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