Staff Reporter: The Bangladesh Securities and Exchange Commission (BSEC), the regulator, has set a maximum interest rate of 12 per cent for margin loans of stock brokers and merchant banks.
The decision was taken at the 656th commission meeting of the BSEC on Wednesday (January 13th), said Mohammad Rezaul Karim, executive director (current responsibilities) and spokesman for the BSEC.
He said stock brokers and merchant banks would be able to recover an additional maximum of three per cent spread from the customer with the cost of funds in return for the margin loan. But in no case will the margin interest rate be more than 12 percent.
Earlier, the BSEC had introduced a new policy of four-tier margin lending in line with the index.
According to the policy, Merchant Bank will be able to give margin loans to customers at a maximum rate of 1: 1 when the DSEX index is below 4,000. In other words, a maximum margin loan of one taka can be given against the customer’s own investment of one taka.
Source: Daily StockBangladesh by www.dailystockbangladesh.com.
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