Order on Interest Rate Determination for Margin Loans by Merchant Bankers — BSEC — BD

Bangladesh Securities and Exchange Commission
Securities Commission Building
E-6/C, Agargaon, Sher-e-Bangla Nagar Administrative Area, Dhaka-1207 www.sec.gov.bd

No.-BSEC/CMARRCDI/2021-388/01 Date: 14 January 2021

Order

The Bangladesh Securities and Exchange Commission, under the provisions of Instruction No. 14 of the Schedule mentioned in the Securities and Exchange (Merchant Banker and Portfolio Manager) Rules, 1996, pursuant to Rule 36 of the said Rules, hereby issues instructions for the compliance of Instruction No. 6(3) of the said Schedule, which shall remain in force until further notice:

In collecting interest or profit from customers on margin loans provided by merchant bankers (portfolio managers), a spread of up to 3% (three percent) over the cost of funds may be charged.
The annual rate of interest or profit on margin loans (including service charges, if any) shall not in any case exceed 12% (twelve percent).
This order shall come into effect from 01 February 2021.

By order of the Bangladesh Securities and Exchange Commission,

(Signature)
14.01.2021
Md. Anwarul Islam
Executive Director

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Issued under

Instruction No. 6(3) of 1996Not in RegAlert
“hereby issues instructions for the compliance of Instruction No. 6(3) of the said Schedule”
Securities and Exchange (Merchant Banker and Portfolio Manager) Rules, 1996Not in RegAlert
“under the provisions of Instruction No. 14 of the Schedule mentioned in the Securities and Exchange (Merchant Banker and Portfolio Manager) Rules, 1996”