Merchant banks now can offer loans at 1:1 ratio
Merchant banks now can offer loans to investors at 1:1 ratio as the stock market regulator yesterday lifted restrictions on such loans.
Earlier, the merchant banks were allowed to offer loans at 1: 0.5, meaning an investor is eligible to receive Tk 1 loan against shares worth Tk 2.
“Following the lifting of restrictions on netting facilities, we found that the market is behaving rationally, prompting us to withdraw the limitations,” said Farhad Ahmed, executive director of Securities and Exchange Commission (SEC).
Under the financial adjustment or money netting facility, which was introduced in 2005, any investor is allowed to purchase shares immediately against the sale proceed after completing a sale.
The 1:1 ratio of loans will come into force on February 10, the SEC officials said.
Prior to the imposition of restrictions, there had not any guideline on loan ratios.
Meanwhile, Dhaka Stock Exchange (DSE) has slapped a daily fine of Tk 500 on 18 listed companies for failure to submit half-yearly financial reports by deadline.
According to sources, the premier bourse yesterday formally informed the companies of the fines that took effect from February 1 [Friday].
The DSE also asked the companies to send the required financial statements along with a late fee of Tk 500 per day.
During the timeframe that ended December 31, a total of 111 companies were supposed to submit their half yearly reports within January 31.
A total of 93 companies, however, have submitted their reports to the bourse, the sources said.
The companies that have been fined are Ashraf Textile, BSC, Chic Tex Ltd, Delta Spinners, GMG Ind Corp, Gulf Foods, M Hossain Garments, Maq Enterprise, Metalex Corporation, Mita Textile, Mona Food, Perfume Chemicals, Pharmaco International, Phoenix Leather, Raspit Data Management, Raspit Inc (BD), Rose Heaven Ball, and Tamijuddin Textile.`
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