Dhaka, Bangladesh (BBN)- The capital market regulator has asked the stock brokers and merchant bankers to submit detailed reports on margin loans provided to their respective clients within a week.
The decision was taken at meeting leaders of the two stock exchanges and Bangladesh Merchant Bankers Association (BMBA) held at Securities and Exchange Commission (SEC) in Dhaka with its chairman Ziaul Haq Khondker in the chair.
The SEC said its regulation regarding NAV-based margin calculation would be implemented from September 30 this year. The SEC also asked the stock brokers and merchant bankers last week to submit their compliance reports by October 15, 2010.
At the meeting, however, the SEC did not agree with the leaders of the bourses and the BMBA to cut down the loan ratio and preferred implementing the margin regulation instead.
After the meeting, SEC Executive Director Anwarul Kabir Bhuiyan said for the interest of the stock market, the regulator is still now concerned over the ‘reckless behaviour’ of the market.
BBN/SI/AD-30Aug10-10:11 am (BST)