RegAlertRule · BSEC · 22 May 2022
Maximum limit of credit facilities (Merchant Banker and Portfolio Manager)
The Bangladesh Securities and Exchange Commission amends the margin lending guidelines under the Securities and Exchange Commission (Merchant Banker and Portfolio Manager) Rules, 1996, to set the maximum margin lending limit at 1:1, or 100% of the client's funds, for any listed security with a price-earnings (P/E) ratio up to 40. This directive applies to all listed securities and remains in effect until further orders. The order takes immediate effect.
Bangladesh Securities and Exchange Commission
No. BSEC/Surveillance/2020-975/79
May 22, 2022
Order
In the current global context, to protect the interests of investors, the Commission hereby amends the following, subsequent to Direction No. BSEC/Surveillance/2020-975/515 dated November 15, 2021, regarding the Commission's provision of margin loans, until further direction:
Under the authority granted in Direction No. 6(1) regarding the provision of margin loans mentioned in the Schedule of Rule 36 of the Securities and Exchange Commission (Merchant Banker and Portfolio Manager) Rules, 1996, the Bangladesh Securities and Exchange Commission hereby specifies that the maximum rate/limit of margin loans shall be 1:1, i.e., 100% of the client's funds, applicable to any listed security with a Price-Earnings (P/E) ratio up to 40 (forty), until further direction.
This order shall take effect immediately.
By Order of the
Bangladesh Securities and Exchange Commission
(Signature)
Professor Shibly Rubaiyat-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
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The links and the sentences they come from (1)
- Issued under
- Rule 36 of the Securities and Exchange Commission (Merchant Banker and Portfolio Manager)Not in RegAlert · 1996
“Under the authority granted in Direction No. 6(1) regarding the provision of margin loans mentioned in the Schedule of Rule 36 of the Securities and Exchange Commission (Merchant Banker and Portfolio Manager) Rules, 1996”
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