Transaction in accounts of negative equity extended

The securities regulator for the third time has extended the suspension period of effectiveness of the section 3(5) of the margin rules till June 30 next allowing transactions in the portfolios which declined below 150 per cent in value, officials said.

The Bangladesh Securities and Exchange Commission (BSEC) Wednesday took the decision following the proposal of the stock brokers of the premier bourse.
'Following a request of the Dhaka Stock Exchange (DSE), the commission Wednesday afternoon gave its consent to the extension of the suspension period for the effectiveness of the section 3(5) of the Margin Rules-1999 from January 1 to June 30 2015,' DSE managing director Swapan Kumar Bala told the FE.
As per the section 3(5) of the Margin Rules-1999, a stockbroker or a merchant bank is not allowed to make any new transaction in the margin account if the equity falls below 150 per cent of the debit balance.
If the equity in a client's margin account falls below 150 per cent of the debit balance, the member will request the client to provide additional margin to bring the equity to not less than 150 per cent, the section said.
Clients have to deposit additional margin by deposit of cash or marginable securities within three days from the date of notice, the section also said.
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