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The Securities and Exchange Ordinance, 1969

( Ordinance NO. XVII OF 1969 )

Chapter V


21. (1) The Commission may, on its own motion or, in the case of the issuer of a listed security, on representation of holders of not less than 1[five per cent] of equity securities at any time by order in writing, cause an enquiry to be made by any person appointed in this behalf into-
(a) the affairs of any Stock Exchange, or of any issuer of a listed security; or
(b) the business or any transaction in securities by any member, director or officer of a Stock Exchange or of an issuer, or of a director or an officer thereof, or by any person 2[***].
3[(2) Where an enquiry under sub-section (1) has been undertaken, every member, director, manager or other officers of the Stock Exchange or the issuer to which or to whose member, director, auditor or officer of the enquiry relates, an insurance company as defined in the Insurance Act, 2010, a bank, a financial institution as defined in the Financial Institutions Act, 1993, and every other person considered by the person conducting the enquiry to be capable of providing information which is, or may be relevant to that enquiry, shall furnish such information as the person conducting the enquiry may require.
(2a) Notwithstanding anything contained in any other law for the time being in force in conducting enquiry under sub-section (1), the Commission, keeping the Bangladesh Bank informed, may seek information regarding bank account from any bank, or any financial institution or organization, as the case may be, so far as it relates to the transaction of security.]
(3) The person conducting an enquiry under sub-section (1) may, for the purpose of such enquiry, enter into any premises belonging to or in the occupation of the Stock Exchange or the issuer or of the person to whom the enquiry relates, and call for and inspect and seize books of accounts or documents in the possession of any such Stock Exchange, issuer or person. (4) The person holding an enquiry under sub-section (1) shall, for the purpose of such enquiry have the same powers as are vested in a Court under the Code of Civil Procedure, 1908, when trying a suit, in respect of the following matters, namely:-
(a) enforcing the attendance of a person and examining him on oath or affirmation;
(b) compelling the production of documents;
(c) issuing commissions for the examination of witnesses;
and any proceedings before such person shall be deemed to be “judicial proceeding” within the meaning of sections 193 and 228 of the 4[* * *] Penal Code (Act XLV of 1860).
5[(5) The Commission may recover any expense incurred for an enquiry under this section from the person or the institution against whose affairs, business or transaction, as the case may be, the enquiry was conducted or, where the Commission considers it to be appropriate, from the holders of securities making the representation.]

  • 1
    The words “five per cent” were substituted for the words “ten percent” by section 7 of the Securities and Exchange (Amendment) Act, 1993 (Act No. XVI of 1993)
  • 2
    The words “who is directly or indirectly the beneficial owner of not less than ten per cent of a listed security” were omitted by section 9(a) of the Securities and Exchange (Amendment) Act, 2012 (Act No. XLVI of 2012).
  • 3
    Sub-section (2) and (2a) were substituted for the section (2) by section 9(b) of the Securities and Exchange (Amendment) Act, 2012 (Act No. XLVI of 2012).
  • 4
    The word “Pakistan” was omitted by Article 6 of the Bangladesh (Adaptation of Existing Laws) Order, 1972 (President’s Order No. 48 of 1972)
  • 5
    Clause (5) was added by section 7 of the Securities and Exchange (Amendment) Act, 1993 (Act No. XVI of 1993)
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