RegAlertRule · BSEC · 21 Nov 2010
Directive to merchant bankers regarding margin loan
The Securities and Exchange Commission establishes a maximum margin loan ratio of 1:0.5, limiting the loan amount to half the value of the client's deposited securities. It prohibits merchant bankers from providing margin loans for 30 trading days following the closure of a client's account or the pledge of securities. This directive supersedes a previous order dated July 8, 2010, and takes effect on November 22, 2010.
No. SE/RSAMR/RC/2001-43/69
November 21, 2010
Order
Pursuant to the powers conferred under Note No. 6(1) of the Schedule to the Securities and Exchange Commission (Merchant Bankers and Underwriters) Rules, 1996, and in the absence of any subsequent order, the following is hereby determined:
(a) The maximum rate of margin loan is fixed at 1:0.5 (one ratio to five-tenths), meaning that a merchant banker (underwriter and underwriter) may provide a distributable margin loan to its client, i.e., the borrower, up to half the value of the securities deposited by the client; and
(b) Merchant bankers (underwriters and underwriters) are prohibited from providing any margin loan for 30 (thirty) trading days from the date of closure of any client's account or the pledge of such securities by the client/borrower.
Note: In determining the securities market, it is necessary to follow Note No. 7 of the Schedule to the aforementioned Rules.
This order shall come into force from November 22, 2010.
In this regard, Order No. SE/RSAMR/RC/2001-43/48 dated July 8, 2010, is hereby repealed.
For Securities and Exchange Commission
Md. Ziaul Haque Khan
Chairman
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The links and the sentences they come from (2)
- Supersedes
- Order No. SE/RSAMR/RC/2001-43/48 dated July 8, 2010Not in RegAlert
“In this regard, Order No. SE/RSAMR/RC/2001-43/48 dated July 8, 2010, is hereby repealed.”
- Issued under
- Schedule to the Securities and Exchange Commission (Merchant Bankers and Underwriters) Rules, 1996Not in RegAlert
“Pursuant to the powers conferred under Note No. 6(1) of the Schedule to the Securities and Exchange Commission (Merchant Bankers and Underwriters) Rules, 1996”
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