Directive regarding interest on margin loan for stock broker

BANGLADESH SECURITIES AND EXCHANGE COMMISSION
Securities Commission Bhaban
E-6/C Agargaon, Sher-e-Bangla Nagar
Administrative Area, Dhaka 1207, Bangladesh

Directive
Dated, 14 January 2021

No. BSEC/CMRRCD/2021-388/02 -Whereas, the Bangladesh Securities and Exchange Commission (hereinafter referred to as “the Commission”) is satisfied that in the interest of the investors and development of capital market, the Commission in exercise of the power conferred by section 20A of the Securities and Exchange Ordinance, 1969 (XVII of 1969) hereby directs all the Stock Brokers registered with the Commission to comply with the followings, until further order, namely:-

(1). In case of charging interest or profit (including service charge, if any) on margin loan, the spread for such margin loan shall not be more than 3% (Three percent) over the cost of fund of the stock broker.

(2). No stock broker shall, in any way, charge interest or profit (including service charge, if any) on such margin loan exceeding 12% (Twelve percent) per annum.

(3). This shall come into effect from 01 February 2021.

By order of Bangladesh Securities and Exchange Commission,

14.01.2021
Md. Anowarul Islam
Executive Director

“মুজিববর্ষের অঙ্গীকার উন্নয়ন-অর্থায়নের উৎস হবে পুঁজিবাজার” Phone (PABX) : +88-02-55007131-2 Fax : +88-02-55007106 E-mail : info@sec.gov.bd Web : www.sec.gov.bd