B Mirror Desk: The regulatory body Bangladesh Securities and Exchange Commission (BSEC) has extended the period for merchant banks, stock brokers and portfolio managers to maintain provisions against unrealized losses (negative equity) in their customers’ margin loan accounts in the capital market. The period for maintaining provisions has been extended till December 31 of this year.

The decision was taken at the 953rd commission meeting chaired by BSEC Chairman Khandaker Rashed Maqsood on Tuesday (April 24). This information was given in a press release signed by BSEC Director and Spokesperson Abul Kalam.

The release said that the time has been extended till December 31, 2025 for those stock brokers and merchant banks who have not been able to maintain provisions against unrealized losses or negative equity created in their customers’ margin accounts.

It further states that to avail this facility, all stock brokers, merchant bankers and portfolio managers who have negative equity or unrealized losses will have to prepare a specific and acceptable action plan for maintaining provisions on negative equity or unrealized losses and submit it to the commission within 30 days with the approval of the board of directors.

The BSEC said that the new provisioning time has been fixed in view of the demands made by the Bangladesh Merchant Bankers Association (BMBA) and the DSE Brokers Association of Bangladesh (DBA).