The Bangladesh Securities and Exchange Commission on Sunday asked the brokerage houses to settle the much-talked-about negative equity problem within a year or face legal action. The capital market regulator gave the warning at a meeting held at the commission office with representatives of the DSE Brokers Association of Bangladesh.
BSEC executive director Md Saifur Rahman presided over the meeting. The capital market regulator at the meeting also asked the brokerage houses to submit time-bound specific action plan that would be taken by the brokerage houses to get rid of the problem.
The BSEC will take stern actions including closure of the brokerage houses if they fail to implement the action plans. BSEC executive director said that 103 out of the 140 brokerage houses which disbursed margin loans to their clients had been suffering capital losses worth Tk 7,000 crore.
Besides the negative impact of such loans on the brokerage houses, the overall market situation is also being affected by such loans, he said.
Considering the overall market situation, the capital market regulator has been giving different policy supports including suspension of effectiveness of a number of securities rules after the 2010-11 market crash. The situation, however, remains unchanged, the BSEC executive director said.
Latest News