The securities regulator has deferred the implementation of its directive regarding the cap on margin loan interest for another six months until January 1, 2022, considering the interest of the investors and development of the capital market.
The implementation of its directive regarding the cap on margin loan interest was supposed to come into effect from July 1, 2021.
Meanwhile, the Bangladesh Securities and Exchange Commission (BSEC) issued a directive on Tuesday, saying the implementation on margin loan interest rate cap shall come into effect from January 1, 2022.
The other terms and conditions of the earlier directive issued on January 14, 2021 in this regard shall remained unchanged, said the BSEC directive.
Earlier, on January 14, 2021, the securities regulator issued a directive on setting the highest interest rate at 12 per cent on margin loan disbursed against listed securities.
The directive said the highest spread on the cost of margin loans will be 3.0 per cent. BSEC extended the timeframe following an appeal from the top brokers and Bangladesh Merchant Bankers Association (BMBA).
Recently, the BMBA sent a letter to the BSEC chairman with a plea for deferring the implementation of the directive regarding the cap on margin loan interest till June 30, 2022.