3 months ago

BSEC extends provision deadline by seven months

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The securities regulator has extended the timeframe by seven months to keep provision against unrealised loss created in margin accounts to avert forced selling.

The Bangladesh Securities and Exchange Commission (BSEC) on Thursday extended the time till January 31, 2025, from the existing deadline set on June 30, 2023.

The regulatory decision came against the backdrop of the persistent downward trend of the country’s capital market.

Mohammad Rezaul Karim, a BSEC executive director, said the market would face more forced selling from the margin accounts if the deadline for provisioning is not extended.

The provisioning requirements are increased following continuous erosion in the capital market.

The market would not be able to absorb the selling pressure. Under the situation, the regulator has extended the deadline for provisioning against the unrealised loss incurred in the margin loans.

“The decision has been taken for the sake of investors and the market. Stakeholders have also made a plea in this regard,” Karim added.

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