Star (November 26, 2010)
Stockbrokers will have to double their deposits against any additional trade exposure to the capital market, according to a new rule set by the Securities and Exchange Commission yesterday.
The move is meant to tighten the liquidity flow to the stockmarket.
It is the first time the regulator intervened in the trade exposure of stockbrokers and stock exchange members, instead of retail investors.
The SEC had earlier tightened the margin rule for individual investors for the same reason -- to curb the liquidity flow.
From now, a stockbroker or a stock exchange member will have to deposit 40 percent of its additional trade exposure, instead of 20 percent, if trade value crosses by Tk 1 crore after the free limit for Tk 5 crore.
For up to Tk 8 crore, the SEC increased the ratio to 60 percent from 30 percent; the ratio is 80 percent, up from 50 percent, for up to Tk 9 crore. For any amount above Tk 9 crore, the ratio is unchanged at 100 percent.
In another development, the commission has decided to allow stock dealers to do underwriting, said Farhad Ahamed, executive director of the SEC.
No comments:
Post a Comment