Timeframe may be extended

FE Report

The securities regulator again is likely to extend the timeframe for the provisioning of losses in merchant banks' own and clients' portfolios, officials said.

"I think the regulator is positive in extending the timeframe of provisioning following the plea of merchant banks. The regulatory decision is expected to be announced Wednesday (today)," said Mohammad Saifur Rahman, an executive director and spokesperson of the securities regulator.     

Earlier, merchant banks were asked to complete the provision of losses counted in the calendar year 2012 and 2013 by December 31, 2013 through five installments.

Later, the timeframe was extended up to December 31, 2014 due to failure of merchant banks in completing the provisioning.

Recently, the merchant banks again sought time extension for more three years.

mufazzal.fe@gmail.com