BSEC amends margin loan guidelines again

Bangladesh Securities and Exchange Commission (BSEC) has again changed the margin loan guidelines issued on September 21 in line with the DSEX, the prime index of the Dhaka Stock Exchange (DSE).

The commission issued new instructions on Monday (September 28).

As per the BSEC's Margin Loan Guidelines on September 21, brokerage houses and merchant banks will be able to lend margin loans to customers at a maximum rate of 1:1 when the DSEX index is below 4,000.

However, in the new directive of 28 September, this ratio has been changed to 1:0.75. In other words, a maximum margin loan of 0.75 taka can be given against the customer's own investment of 1 taka.

Meanwhile, the new guidelines state that margins can be lent at the rate of 1:0.50 for indices up to 4001-7000 and 1:0.25 for indices above 7000.

The new guidelines of BSEC will be effective from January 1 next year.

sr/teb