Dhaka, Bangladesh (BBN)- The Securities and Exchange Commission (SEC) will sit on Sunday with the top executives of the stock exchanges and Bangladesh Merchant Bankers Association (BMBA) to ensure proper enforcement of its directives relating to margin loan.
The implementation of ‘net asset value’ calculation will be high on agenda in the meeting, merchant bankers said.
The meeting was scheduled to be held last week when the SEC’s market monitoring cell directed the merchant bankers and brokerage houses to determine the market price of portfolios or securities for providing margin loans in accordance with the Margin Rules of 1999.
On Sunday’s meeting, the regulator will ask the bourses and merchant bankers to abide by the order duly in giving margin loans, a SEC official said.
Under the rules, the brokers and merchant bankers have to evaluate the market price of a share by dividing the sum of its current price and net asset value (NAV) by two to provide margin loans to their clients.
BBN/SI/AD-29Aug10-12:46 am (BST)