Margin loan facilities for purchasing shares of five listed companies have been revoked in the Dhaka stock market. These companies have been downgraded to the ‘Z’ category, rendering them ineligible for margin loan facilities. Instructions have been issued to brokerage houses and merchant banks by the Dhaka Stock Exchange (DSE) on Sunday (June 25) to discontinue providing margin loan facilities for the purchase of shares from these entities, according to DSE sources.
According to sources, the margin loan facilities for Northern Jute Manufacturing Co. Limited, Nurani Dyeing and Sweater Limited, Appollo Ispat Complex Limited, Shurwid Industries, and Ratanpur Steel Re-Rolling Mills Limited have been abolished.
It is known that among the five companies, four have been transferred from the ‘A’ category to the ‘Z’ category. These companies are Northern Jute Manufacturing Limited, Nurani Dyeing and Sweater Limited, Shurwid Industries, and Ratanpur Steel Re-Rolling Mills Limited. Additionally, Appollo Ispat Complex has been transferred from the ‘B’ category to the ‘Z’ category. As a result, in accordance with the instructions of the Bangladesh Securities and Exchange Commission (BSEC), the DSE has requested stockbrokers and merchant banks to refrain from providing margin loan facilities for the purchase of shares from these companies.
Furthermore, on December 26, 2021, the margin loan facilities for purchasing shares in the ‘Z’ category were discontinued by the Bangladesh Securities and Exchange Commission (BSEC). According to the directive, no brokerage house will be able to provide margin loan facilities for the purchase of shares in the ‘Z’ category.
