UNREALISED LOSSES

BSEC extends deadline for provisioning

Staff Correspondent | Published: 01:46, Jan 02,2018 | Updated: 01:48, Jan 02,2018

 
 

The Bangladesh Securities and Exchange Commission has extended deadline by one year for keeping provision voluntarily against unrealised losses in portfolios of merchant banks, stock dealers and their clients.
The decision was made at a meeting of the BSEC on December 28, 2017. BSEC chairman M Khairul Hossain presided over the meeting.
The regulator extended the facility till December 31, 2018, said a BSEC statement.
The BSEC allows merchant banks, stock dealers and their clients to keep 100 per cent provision in five instalments (one in three months) against their unrealised losses in their own portfolios and losses against margin loans.
Each instalment has to be made up of 20 per cent of required provision.
The commission also asked the merchant banks, stock dealers and their clients to submit progress reports after every three months.
The unrealised losses took place due to revaluation of portfolios of the merchant banks and stock dealers and their clients, said regulator in a statement.
In 2016, the BSEC set December 31, 2017 as the deadline for provisioning the unrealised losses.
The time has been extended considering the present market situation and in response to the appeal of the merchant banks and stock dealers, said an official of the commission.

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