Bangladesh Securities and Exchange Commission on Thursday extended the share trading facility for the investors who had been barred from trading due to margin loan rules to March 31, 2014 from September 30, 2013. The BSEC earlier allowed the facility for the investors until September in a bid to break the stagnancy at the capital market following the Dhaka Stock Exchange’s proposal.
The BSEC release also said that the commission suspended the sub-section 5 of section 3 of Margin Rules-1999 until September this year following the application of the DSE and considering the present condition of the capital market.
According to the sub-section 5 of section 3 of Margin Rules-1999, whenever the equity in a client’s margin account falls below 150 per cent of the debit balance, the member shall request the client to provide additional margin to bring the equity to not less than 150 per cent.
It also says that such additional margin must be satisfied by deposit of cash or marginable securities within three days from date of notice. The member shall not permit any new transactions in the margin account unless the resulting equity in the account would be not less than 150 per cent of the debit balance.
A recent DSE data showed that total outstanding margin loan provided by the stockbrokers, merchant bankers and financial institutions stood around Tk 15,000 crore and the amount was increasing.
-With New Age input
