Seven capital market institutions six brokerage houses and one merchant bank have received temporary relief from net asset compliance requirements, as decided by the Bangladesh Securities and Exchange Commission (BSEC).
The decision was taken at the Commission’s 988th meeting held on Wednesday (17 December), according to reliable sources at the BSEC.
The institutions granted this special facility are: Shyamol Equity Management Limited, Cynthia Securities Limited, Mika Securities Limited, Eminent Securities Limited, Meghna Life Securities and Investment Limited, BDBL Securities Limited, and SIM Capital Limited.
This relaxation follows the BSEC’s earlier decision on 13 November to extend the timeframe for maintaining and adjusting provisions against negative equity and unrealized losses for these entities.
The BSEC stated that, subject to strict compliance with specific directives, the concerned institutions will be allowed to maintain provisions against negative equity and unrealized losses over an extended period. During this time, stock brokers, stock dealers, and merchant bankers will enjoy temporary relief from statutory requirements related to net asset shortfalls. This measure is expected to ease financial pressure on the affected firms to some extent.
At the same meeting, the Commission also set a crucial deadline. Stock brokers, stock dealers, and merchant bankers who have not yet submitted their board-approved action plans to the Commission must do so by 31 December. Any institution failing to submit its action plan within this deadline will not be granted any relief and will be required to maintain full provisioning.
