Dhaka, Bangladesh (BBN)- The central bank of Bangladesh has raised credit facility for stock dealers up to BDT 30 million from existing limit of BDT 10 million aiming to bring back stability in the country’s capital market.
The Bangladesh Bank (BB) issued a circular in this connection on Wednesday and asked the commercial banks to follow the latest directive properly.
The BB’s latest move comes after the premier bourse--Dhaka Stock Exchange (DSE)-recently has proposed the central bank for extending the credit facility for stock brokers up to BDT 200 million.
Stock Market coordination committee and the DSE have also held some meetings with the BB authority and urged the governor to extend credit facility for stock dealers.
As per previous circular issued on June 15, 2010, a stock dealer was allowed to avail the credit facility up to BDT 10 million to purchase listed stocks or debentures.
"A bank can provide a loan up to BDT 30 million to a stock dealer on the basis of relation and taking mortgage," the BB said in its circular.
The stock dealers, however, will avail the credit facility for purchasing or selling 'A' and 'B' category stocks or debentures.
And other conditions for receiving bank loans by stock dealers will remain unchanged.
BBN/SSR/AD-14Mar13-9:40 am (BST)
