United News of Bangladesh

The DSE Brokers Association of Bangladesh (DBA) has requested the Bangladesh Securities and Exchange Commission (BSEC) to extend the compliance timeline for the Margin Rules 2025 by an additional three months, citing operational, technical and market-related challenges. In a letter sent to BSEC Chairman Khondoker Rashed Maqsood on April 7 and disclosed on Sunday, DBA President Saiful Islam said the rules, which came into effect on November 1, 2025, introduced several critical requirements aimed at strengthening risk management, investor protection and overall market stability. However, the existing six-month compliance deadline ending on April 30, 2026 appears insufficient for brokerage houses to fully implement key provisions, the association said. According to the letter, brokerage firms need additional time for formulation and implementation of board-approved conservative margin loan policies, which require internal consultations, risk assessments, board approvals and integration into operational systems. Many brokerage houses are still finalising policies due to limited skilled resources, technical support and client feedback. The DBA also noted that full compliance with risk-based capital adequacy (RBCA-2019) requires significant system upgrades, staff training, internal audits and technological enhancements, warning that rushed implementation may lead to operational errors or temporary disruptions in margin services. Another concern highlighted in the letter relates to adjustments of non-marginable securities held by existing margin loan clients. The association said thousands of loan accounts currently hold non-marginable securities of significant value and enforcing the deadline could trigger distressed sales, increase market volatility, create avoidable losses for retail investors and strain liquidity. The DBA further mentioned that the capital market is already under pressure due to recent global developments, including war-related uncertainties and fuel price shocks, making immediate enforcement more difficult. Seeking a smooth transition, it proposed extending the compliance period by three months up to July 31, 2026 allowing brokers to complete system and policy upgrades without disrupting services to existing margin loan clients. The association requested the regulator’s consideration and approval for the extension to ensure orderly implementation of the Margin Rules 2025 and protect investor interests.