New guidelines of BSEC by increasing margin loans

The capital market index is rising. Every day new records are being set in the capital market. The Bangladesh Securities and Exchange Commission (BSEC) has issued instructions to increase the amount of margin loans in coordination with the index. The current Corona epidemic is also being considered.

The directive, signed by BSEC chairman Prof Shibli Rubaiyat-ul-Islam, was issued on Thursday (August 12th).

Under the new guidelines, the ratio of borrowers to their own investments up to 8,000 on the DSEX index has been raised to 1: 0.80. Which was earlier up to DSEX 7000. The margin loan ratio was set at 1: 0.50 on or above the index.

As such, the margin loan ratio has been increased from 1: 0.50 to 1: 0.80 in the DSEX index from 7,000 to 8,000. As a result, investors will get a maximum loan of Tk 0.80 against their own investment of 1 taka even after 7,000 indices.

At the same time, the margin loan ratio has been fixed at 1: 0.50 in case of DSEX 8,000 or above.

Earlier on April 4, the commission had decided to increase the ratio of margin lending from 1: 0.50 to 1: 0.80. That instruction was effective until the DSEX 7000.