FE Report
The Securities and Exchange Commission (SEC) Monday raised margin loan ratio to 1:1.5 from 1:1 to boost purchasing capacity of investors, effective from Thursday.
This means an investor will get Tk 150 against a deposit of Tk 100 from merchant banks for buying scrips.
The latest move came against the backdrop of continued downslide of the marker over the last three weeks.
The benchmark index of the Dhaka Stock Exchange lost around 500 points in the last one month, prompting the investors to take to the street.
"Margin loan ratio has been revised upward for greater interest of the stock market and the investors," Anwarul Kabir Bhuiyan, Executive Director of the SEC, told reporters after an emergency commission meeting.
The directive on latest loan margin revision will be sent to both the bourses today (Tuesday).
In early February, the SEC fixed margin loan at 1:1 from 1:1.5 to cool down the overheated market.
The SEC earlier barred a scrip whose price earning (PE) ratio is above 50 from getting facility of margin loan in a move to rein in spiralling share prices.
Mutual funds that trade 7.5 percent over their latest NAV (net asset value) will not qualify for the loans.
Margin loan ratio revised upward
FE Team | Published: March 16, 2010 00:00:00 | Updated: February 01, 2018 00:00:00
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