Timeframe for capital mkt refinancing scheme extended again

FE Report | Published: February 03, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

Less-than expected level of investors' response and tough conditionality are prompting the securities regulator to frequently extend the timeframe for capital market refinancing scheme, market insiders said.
The Bangladesh Securities and Exchange Commission (BSEC) extended Sunday the timeframe for fourth time to help affected investors avail themselves of the refinancing facility.
The BSEC officials said a step is also under consideration to ease the tough conditions set for the merchant banks and brokerage to avail the refinancing scheme.
"We have extended further the timeframe, taking the scheme's importance and a gradual increase in the investors' willingness into consideration," the BSEC Executive Director Mohammad Saifur Rahman told the FE.
As per the timeframe extended Sunday (yesterday), the merchant banks and brokerage firms will be able to submit applications against the portfolios of affected investors up to March 31, 2014.
"The government wants to utilise the fund, which has already been disbursed, for the sake of affected investors and the capital market. That's why we have extended the timeframe up to March, 31 next," said Mr. Rahman.
He said the securities regulator is also trying to consider the proposal of easing some tough conditions set for availing the refinancing scheme facility.
According to Mr. Rahman, so far 19 merchant banks and 20 brokerage firms have applied for loans worth above Tk 3.0 billion and 6 lakh.
"The committee earlier formed to sanction the loan has already approved the loans worth Tk 848.9 million sought by seven merchant banks against the portfolios of 3030 affected investors," said Rahman.
At first, the supervision committee of the capital market refinancing scheme set the timeframe up to November 30, 2013 to apply for loan facility.
Later the timeframe was extended up to December 15, 2013 and the deadline was further extended for the second time up to December 31, 2013.
Later, the timeframe was extended up to January 31, 2014 for third time and for the forth time the securities regulator Sunday extended the timeframe up to March 31 next.