Dhaka, Bangladesh (BBN) - The central bank of Bangladesh has asked the country's non-banking financial institutions (NBFIs) to follow properly the margin loan ratio, fixed by the Securities and Exchange Commission (SEC), for their subsidiary merchant banks or brokerage houses, officials said.
The Bangladesh Bank (BB) issued a circular in this connection on Wednesday and asked the chief executive officers (CEOs) of the NBFIs to maintain the ratio properly.
The stock market regulator, through an order on September 30, re-fixed the margin loan ratio for the NBFIs' subsidiaries.
According to the order, the merchant banks and brokerage houses can disburse margin loan to their clients at 1:2 ratio up to June 30, 2013.
The institutions will disburse margin loan at 1:1.5 ratio from July 01, 2013 to December 31, 2013.
The loan ratio from January 01, 2014 to June 30, 2014 will be 1:1, and from July 01, 2014 it will come down to 1:0.5.
BBN/SSR/SI-22Nov12-4:05 pm (BST)
