The Bangladesh Securities and Exchange Commission (BSEC) Tuesday extended the deadline until 2030 for listed stock brokers and merchant banks to adjust their negative equity and unrealised losses, with a mandatory 25 percent annual provision from 2027.

The decision was taken at the commission's 1038th meeting, held at its Agargaon office in the capital with Chairman Masud Khan in the chair.

Under the decision, firms with negative equity as of September 30, 2026 must set aside at least 25 percent of that amount every year from 2027, so that the entire amount is cleared by 2030. Institutions that have already been given extensions will keep their existing deadlines.

Any new negative equity created within 2026 must be provided for in 2026 itself. Negative equity arising in 2026 beyond the September 30 baseline will not be covered by the phased schedule and must be adjusted within the same financial year.

The commission also set conditions to protect investors and keep the affected accounts functioning:
Firms may rebalance portfolios by selling existing shares in negative equity BO accounts and buying "A" category shares. No new margin loans may be given against such purchases, and no block market transactions are allowed in these accounts.

No interest on margin loans or portfolio management fees may be charged on these BO accounts during provisioning and adjustment.

Investors cannot be held liable, or have financial burdens placed on them, for claims or liabilities arising from negative equity accounts.

Brokers, stock dealers and merchant banks cannot declare or distribute cash dividends during the extended period.

The BSEC said the move would give brokers and merchant banks room to adjust their negative equity and unrealised losses in phases.

It said this would protect investors' interests, maintain discipline in the capital market, and help strengthen market stability and investor confidence.