DHAKA: Stock regulator directed merchant banks and brokerage houses to submit by Sunday detail reports on the margin loan they disbursed among shareholders.

The Securities and Exchange Commission (SEC) took the decision Sunday at a meeting with two stock exchanges and merchant banks.

The merchant banks in the meeting demanded re-fixing the loan ratio which was not responded by the SEC.  

They also said the directives will be given on margin loan ratio keeping balance between share price and its Net Asset Value (NAV).

“The next course of action would be taken after analyzing the impact of force sale of shares if the directives is implemented,” they added.

SEC would hold another meeting with the two stock exchanges and the merchant banks next Sunday and finalize the decision on margin loan ratio.

Earlier, SEC directed authorities concerned to be prepared for implementing NEV based calculation method in setting margin by September 30.

Executive Director and spokesperson of SEC Anwarul Kabir Bhuiyan on Sunday told reporters that no change has been brought about the Commission-given timeframe as well as the directives.

“There will be no complexity, if banks and brokerage houses can calculate margin of each share based on its market price on any day of a month, he said.

Expressing his concern over the market situation, Anwarul Kabir Bhuiyan said, proper steps are being taken to bring it normal considering the common shareholders.

BDST: 1958 HRS. AUGUST 29, 2010