BM Desk : The Bangladesh Securities and Exchange Commission (BSEC) has granted long-term extensions to one merchant bank and one brokerage house to preserve provisions and adjust losses against negative equity and unrealized losses.

The two institutions are: Janata Capital and Investment Limited and Premier Bank Securities Limited.

This decision was made during BSEC’s 978th commission meeting held on Tuesday, October 21. The information was confirmed via a press release issued by the commission and from related sources.

According to the BSEC decision:

Janata Capital and Investment Limited has been given until December 31, 2030

Premier Bank Securities Limited has been granted time until December 31, 2032

Within this period, the firms must complete the process of preserving provisions and adjusting losses against their negative equity and unrealized losses.

Earlier, BSEC had asked stock brokers and merchant banks to submit board-approved action plans, outlining how they intended to tackle their negative equity and unrealized losses. After reviewing those plans, the commission approved extended deadlines for these two firms.

In the press release, BSEC stated that the decision to extend the deadline was made after reviewing the board-approved action plans submitted by the stock brokers and merchant bankers. These plans addressed how they would preserve provisions and make adjustments for their negative equity and unrealized losses.

Additionally, BSEC mentioned some relaxation in regulations concerning net worth shortfalls during this process. In other words, the institutions are being provided with practical flexibility to restore their financial stability and regain a stable position in the market.

According to market analysts, such regulatory decisions typically give financially troubled institutions a chance for recovery in the long term and play a supportive role in maintaining overall market stability.