Directive regarding margin loan provided by stock broker

Bangladesh Securities and Exchange Commission

DIRECTIVE

Dated: 26 December 2021

No. BSEC/CMRRCD/2009-193/32-In exercise of the powers conferred by section 20A of the Securities and Exchange Ordinance, 1969 (Ordinance No. XVII of 1969), Bangladesh Securities and Exchange Commission hereby repeals its earlier Directive No. SEC/CMRRCD/2001-43/169 dated October 01, 2009 and No. SEC/CMRRCD/2009-193/177 dated October 27, 2015, and henceforth, among others, following directions shall be followed by every stock broker for providing margin loan to its client(s), namely: -

1. No stock broker shall provide margin loan facilities for purchasing any security under Z-category;

2. No stock broker shall provide margin loan facilities to purchase any newly listed security for the first 30 (thirty) trading days from the date of commencement of trading after listing;

3. There shall be no restriction for providing margin loan facilities to purchase any existing listed security except Z-category security for any change in the categorization of the said security:

Provided that in case of upgradation of any security from Z-category, margin loan facilities may be provided to purchase such securities after 07 (Seven) trading days from the date of such upgradation.

This shall have immediate effect.

By order of the Bangladesh Securities and Exchange Commission

Professor Shibli Rubayat-Ul-Islam
Chairman.

Securities Commission Bhaban, E-6/C Agargaon, Sher-e-Bangla Nagar Administrative Area, Dhaka-1207, Bangladesh Phone (PABX): +88-02-55007131-2, Fax: +88-02-55007106, Email: info@sec.gov.bd, Web: www.sec.gov.bd