The government has waived one of the tough conditions earlier set for availing the capital market re-financing scheme facility by the investors affected during the stock market debacle, officials said.
The merchant banks and brokerage firms will now be able to get funds under the capital market re-financing scheme without giving 'personal guarantee' of their directors.
The Bangladesh Securities and Exchange Commission (BSEC) received Tuesday a letter from the ministry of finance (MoF) stating that the "personal guarantee" against the disbursement of the capital market re-financing funds has been waived.
The latest action was taken by the MoF following the proposal of the securities regulator recently as per prior discussion with Finance Minister AMA Muhith.
"The government has relaxed the condition of furnishing personal guarantee of the directors of merchant banks and brokerage firms considering the interest of affected investors and the capital market as well," Mohammad Saifur Rahman, a BSEC executive director, told the FE.
He said the supervisory committee of the capital market re-financing scheme will sit today (Wednesday) to extend the timeframe which expires on the day for submitting applications to avail the re-financing fund facility.
Meanwhile, the committee extended the timeframe for the fifth times following the reluctance from the borrowers' end due to some tough conditions mainly personal guarantee of the directors of merchant banks and brokerage firms.
As a result, the fund worth Tk 3.0 billion under the capital market re-financing scheme remains fully undisbursed even after nine months of its release.
The Bangladesh Bank (BB) released Tk 3.0 billion out of Tk 9.0 billion capital market re-financing fund in July, 2013 with an interest of 9.0 per cent.
Merchant banks, brokerage houses exempted from personal guarantee
FE Report | Published: April 30, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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