Dhaka, Bangladesh (BBN) – The Securities and Exchange Commission (SEC) has decided that banks would be allowed to establish their merchant banking wings and brokerage houses into subsidiary companies until November 30, extending the timeline from September 30 this year.
The merchant banks will not be allowed to give loans to their clients if they fail to separate their merchant banking divisions within November 1 this year, SEC executive director Anwarul Kabir Bhuiyan reportedly said.
He also said the commission took the decision on extending the timeline following a proposal from the central bank in this connection.
The central bank of Bangladesh earlier asked the commercial banks to separate their merchant banking wings from parent companies and convert these into subsidiaries.
BBN/SI/AD-04Oct10-9:58 am (BST)