Rule · BSEC · 16 Aug 2021
The Bangladesh Securities and Exchange Commission amends its margin loan guidelines effective immediately, establishing tiered maximum margin limits based on the DSE X Index. For index values below 8,000, the maximum margin loan limit is set at 80% of the client's funds, while for index values of 8,001 or above, the limit is reduced to 50% of the client's funds.
Bangladesh Securities and Exchange Commission
No. BSEC/Surveillance/2020-975/239 August 12, 2021
Order
Considering the current situation of the COVID-19 pandemic, the Commission's directive on the provision of margin loans No. BSEC/Surveillance/2020-975-200 dated April 04, 2021, is amended. Under the authority granted in Directive No. 6(1) of the Schedule to the Securities and Exchange Commission (Merchant Bankers and Portfolio Managers) Rules, 1996, the maximum rate/limit for margin loans is hereby re-determined as follows until further notice:
| Serial No. | DSE X Index | Maximum Margin Loan Limit |
|---|---|---|
| 1 | Below 8,000 | 1:0.80, i.e., 80% of the client's funds |
| 2 | 8,001 or above | 1:0.50, i.e., 50% of the client's funds |
This order shall come into force immediately.
By Order of the
Bangladesh Securities and Exchange Commission
(Signature)
Professor Shiblly 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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“Under the authority granted in Directive No. 6(1) of the Schedule to the Securities and Exchange Commission (Merchant Bankers and Portfolio Managers) Rules, 1996”
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