Stock market regulator raises limit for loan against investment

People can now take loans up to 80 per cent of their investment in the stock market if the benchmark index crosses past 7,000 points and stays in between 8,000.

Earlier, investors were allowed to take a loan of Tk 80 against investment of Tk 100 if the benchmark index remained lower than 7,000 points.

For the index over 7,000 points, the loan taking capacity was lowered to Tk 50 against investment of every Tk 100.

The Bangladesh Securities and Exchange Commission increased the limit and issued a directive saying the Trading Right Entitlement Certificate holders of exchanges are allowed to extend their credit facilities to investors to their approved clients on the basis of 1:0.80 ratio.

"Considering the Covid-19 pandemic situation" and for the interest of the investors the directive was amended, the BSEC said.

DSEX, benchmark index of the Dhaka Stock Exchange, ended the day at 6,699 on the last trading day on August 12, which is its historical highest level since its inception in 2013.