Dhaka, Bangladesh (BBN)- The Securities and Exchange Commission (SEC) has halved the ratio of share credit aiming to cool down an overheated market.

Under the latest move, investors who trade on credit can receive margin loans at a 1:0.5 ratio, meaning if an individual has shares worth BDT 1.0, he/she will get a BDT 0.50 loan.

It has also ordered the merchant banks and stock brokers not to provide margin loans to their clients during the first 30 trading days from the date of opening accounts and depositing their own funds for stock trading.

The decisions came at a meeting of the market monitoring cell of the Securities and Exchange Commission (SEC) held at its office in Dhaka on Sunday with its Chairman Ziaul Hque Khondker in the chair, an SEC spokesperson said.

However, the regulator said nothing about adjustment of the margin loan, which was earlier provided at 1:1 ratio. The meeting also decided to ensure the display of necessary instructions at the DSE and the CSE website scrolls, besides giving regular circulations in the newspapers, to make the investors aware of capital market investment.

BBN/SI/ANS-22Nov10-11:10 am (BST)