SEC discontinues GP netting facility
Tuesday, 9 February 2010
FE Report
The investors will have to buy shares of Grameenphone with cash money or with money from their mature funds with effect from tomorrow (Wednesday), the Securities and Exchange Commission (SEC) said Monday.
After a board meeting the
SEC ordered the Dhaka Stock Exchange Limited to discontinue, until further order, the financial adjustment facilities, known as netting facility, against shares of GP.
Now the investors will no longer be allowed to buy shares of Grameenphone with their immature funds.
The SEC introduces the new measure based on an investigation as part of the regulator's steps to cool down the market.
"The directive has already been posted on the website of the Dhaka Stock Exchange (DSE)," SEC member Yasin Ali said.
"The SEC is carrying out an investigation, so now it's not possible to say exactly what other steps will be taken on GP," he added.
The SEC formed the enquiry committee to look into the unusual rise of the GP share price.
Recently despite the SEC's revising of the margin loan criteria twice, the market became overheated both in terms of turnover and share price rise, mainly boosted by GP.
On Monday, Grameenphone continued to gain for the sixth consecutive session, rising 6.15 per cent or Tk 16 to close at Tk 310.60.
Accounting for more than 13 per cent of the total DSE turnover as of Monday, it topped the turnover list with shares worth Tk 1.63 billion traded, the highest-ever at the bourse.
The investors will have to buy shares of Grameenphone with cash money or with money from their mature funds with effect from tomorrow (Wednesday), the Securities and Exchange Commission (SEC) said Monday.
After a board meeting the
SEC ordered the Dhaka Stock Exchange Limited to discontinue, until further order, the financial adjustment facilities, known as netting facility, against shares of GP.
Now the investors will no longer be allowed to buy shares of Grameenphone with their immature funds.
The SEC introduces the new measure based on an investigation as part of the regulator's steps to cool down the market.
"The directive has already been posted on the website of the Dhaka Stock Exchange (DSE)," SEC member Yasin Ali said.
"The SEC is carrying out an investigation, so now it's not possible to say exactly what other steps will be taken on GP," he added.
The SEC formed the enquiry committee to look into the unusual rise of the GP share price.
Recently despite the SEC's revising of the margin loan criteria twice, the market became overheated both in terms of turnover and share price rise, mainly boosted by GP.
On Monday, Grameenphone continued to gain for the sixth consecutive session, rising 6.15 per cent or Tk 16 to close at Tk 310.60.
Accounting for more than 13 per cent of the total DSE turnover as of Monday, it topped the turnover list with shares worth Tk 1.63 billion traded, the highest-ever at the bourse.