Dhaka, Bangladesh (BBN)- The High Court (HC) has stayed the SEC’s recent directive on the NAV-based margin loan calculation and suspension of netting facilities for non-marginable securities for a period of three months.
A HC bench, comprising Justice Mamnoon Rahman and Justice Syeda Afsar Jahan, issued the stay order.
The Court also asked the Securities and Exchange Commission (SEC) to explain within next four weeks as to why its directive regarding the NAV-based margin loan calculation and suspension of netting facilities would not be declared illegal.
Two investors — Murshedur Rahman and Mohammad Shahnewaz Rubel — filed a writ petition on September 26, challenging the SEC’s directive.
Barrister Sheikh Fazle Noor Taposh and Barrister Abul Kalam Azad appeared for the petitioners.
On September 6, the SEC issued the directive saying that the stockbrokers and merchant bankers will apply the margin call requirements based on the companies’ latest available NAV, calculated by the Dhaka Stock Exchange (DSE).
BBN/SI/ANS-28Sept10-12:19 am (BST)