Extension of Deadline for Stock Brokers and Merchant Bankers to Make Provisions Against Unrealized Losses on Margin Loans

Bangladesh Securities and Exchange Commission Market and Intermediaries Affairs Division Supervision of Market and Market Intermediaries Department www.sec.gov.bd

BSSEC/SMMIID/NE/2023/1690 Date: March 28, 2024

1. Managing Director,
   Dhaka Stock Exchange Limited,
   9/F Motijheel C/A, Dhaka-1000;

2. Managing Director,
   Chittagong Stock Exchange PLC,
   CSE Building, 1080, Sheikh Mujib Road Agrabad, Chittagong;

3. President,
   Bangladesh Merchant Bankers Association (BMBA) Sayhaim Skyview Tower, 45 Bijoy Nagar, Dhaka-1000.

Subject: Regarding the extension of the time limit for stock brokers and merchant bankers to make provisions (Provision) held against unrealized losses resulting from margin loans provided to customers.

Sir,

Reference is made to:
Commission Directive No. BSSEC/CMARRCID/2009-193/196 dated December 28, 2016; BSSEC/CMARRCID/2009-193/203 dated December 28, 2017; and Memo No. BSSEC/SRI/NE/2020/605 & 606 dated: December 28, 2022 and BSSEC/SRI/NE/2023/840 dated: October 22, 2023.

In light of the subject and references above, it is informed that the time limit for those stock brokers and merchant bankers who were unable to make provisions (Provision) held against unrealized losses (Unrealized Loss) in their clients' portfolios due to revaluation has been extended until January 31, 2025.

Issued by order of the competent authority.

(Signature)
28.03.2024
Md. Motiur Rahman
Deputy Director (SMMIID)
E-mail: motiur.ib@sec.gov.bd

Copies forwarded for information to:

1. Executive Director (IT Division), BSSEC; along with a request to upload this letter on the Commission's website.
2. Personal Assistant to the Chairman, BSSEC; and
3. Relevant file copy.