DSE to fix amount of margin loans from Thursday

FE Report (September 21, 2010)

The Dhaka Stock Exchange (DSE) will fix the amount of margin loans against the entitled securities and will keep updating on DSE website from next Thursday in compliance with the SEC directive.

The officials of the Securities and Exchange Commission (SEC) said this Tuesday after a meeting held at the SEC building.

The DSE is going to calculate the amount of margin loans after receiving the directive, issued on September 6 last.

In order to fix the amount of margin loans, the DSE will calculate the average net asset value (NAV) and the prevailing market prices of the securities every Thursday. In that case the NAV will be taken from the companies' latest available financial statements.

While calculating the amount of margin loans against the shares of insurance companies, the DSE will count zero for NAV in absence of NAV provision.

"If the insurance companies can find a method of calculating the NAV the regulator will consider it," an SEC official said.