BSEC may extend timeframe of provisioning unrealised losses

The securities regulator is set to extend the timeframe of provisioning the unrealised losses calculated against the merchant banks' own portfolios up to December 31, 2014, officials said.
The provisioning facility will be applicable for the losses counted in the calendar year 2012 and 2013.
On January 29 this year the Bangladesh Securities and Exchange Commission (BSEC) allowed the merchant banks for provisioning the unrealised loss of 2012 by December 31 this year through five quarters.
Later the stock dealers were provided similar facility by the securities regulator.
The sources said that the regulator's upcoming move on extension of the time frame is likely to be cleared today (Tuesday).
"The merchant bankers have applied to the BSEC for extending the time frame. The regulator is likely to extend the time frame by one year at Tuesday's meeting," said an official of the securities regulator.
The merchant banks will enjoy the facility of provisioning their own losses through four quarters in the calendar year 2014.
The BSEC officials said same facility may be offered for provisioning the margin loans provided against the portfolios of the merchant banks' clients.
When asked, Mohammad A Hafiz, the president of the Bangladesh Merchant Bankers Association (BMBA), has said that they made an application seeking time extension in first week of the November last.
"We have sought the facility of provisioning the losses by 2016 through four installments due to our business situation. The regulator is working on our demand," Hafiz said.