Dhaka, Bangladesh (BBN) – The Dhaka Stock Exchange (DSE) has updated the NAV list of 129 marginable securities in line with the regulator’s new formula.

In compliance with the instruction of the Securities and Exchange Commission (SEC), the DSE will have to update the NAV (net asset value) list every Thursday, officials said.

The stockbrokers and merchant bankers will have to follow the regulator’s new NAV-based margin guideline by September 30 in maintaining margin against marginable securities and adjust additional credit previously provided to their respective clients.

The formula for margin loan determination is to divide the summation of closing price and NAV of the securities by two.

On Tuesday last, the SEC clarified some issues relating to loan margin ratio and directed the merchant banks, the DSE and the Chittagong Stock Exchange Ltd (CSE) as well as the brokerage houses to apply the new formula with immediate effect.

It directed the merchant bankers and stockbrokers to calculate margin maintenance figure based on NAV of the listed securities as per last available annual or audited or un-audited financial statements and closing price of the last trading day of the week.

According to the directives, Asset Revaluation Surplus, if any, shall not be considered in computation of NAV of the concerned company. In case of mutual funds, DSE shall calculate margin maintenance figure based on the latest disclosed NAV at market price of the concerned mutual fund and the closing price of the relevant fund at the end of the week.

BBN/SI/AD-25Sept10-12:25 pm (BST)