Interest rate on margin loans will effective from July 1

The Bangladesh Securities and Exchange Commission (BSEC) has directed that the maximum 3 percent spread with cost of funds in case of interest or profit on margin loans given by merchant bankers will be effective from 1 July instead of 1 February. On March 7 (Sunday) BSEC issued a circular regarding this.

This information has been given in a press release signed by the Executive Director of BSEC Md. Anwarul Islam.

It is learned that the maximum 3 percent spread with the cost of funds in case of interest or profit from the customer’s net on the margin loan provided by Merchant Bank (Portfolio Manager) will be effective from 1st July. This instruction will remain in force until further notice.

Earlier, the BSEC had issued a directive on January 14 to collect a maximum spread of 3 percent. The directive said the maximum 3 per cent spread would be effective from February 1. But on March 7, the BSEC issued another circular stating that the directive would take effect from July 1.

On the other hand, the directive that the annual rate of interest or profit on margin loans (including service charges, etc., if any) will not exceed 12 per cent will be effective from 1 February.

Sunbd/NJ