SEC trims loan margin

The Securities and Exchange Commission (SEC) has narrowed the loan margin to 1:1 from 1:1.5 for the merchant banks in a move to tighten the flow of fund into the stock market. The loan margin will be effective from February 7. The SEC in a directive Wednesday said the merchant bankers should not extend credit facilities to their approved clients beyond 1:1 under the Margin Rules, 1999.
—FE Report