Dhaka, Bangladesh (BBN)- The Dhaka stocks went through corrections over the week. The benchmark Dhaka Stock Exchange General index (DGEN) shed off 260.42 points or 3.53 percent.
In a major step, the Securities and Exchange Commission (SEC) this week decided to let lenders take decisions on share credit and perform other tasks related to margin loan disbursement and maintenance.
The merchant banks and stockbrokers, who provide margin loans for share purchase, will however have to report to the SEC on credit disbursement and maintenance on a monthly basis so that the regulator can monitor.
Previously, the SEC had fixed the loan ratio and the lenders provided credit in line with the limit, but the regulator was facing strong criticism from experts and market intermediaries for its role in share credit.
In another move, the SEC allowed stock exchanges to take decisions on some other issues such as transfer of securities from one trading market to another, and suspension of stock trading. Earlier, the bourses acted only on instructions from the SEC.
BBN/SI/AD-06Feb11-9:33 am (BST)