United News of Bangladesh

The Bangladesh Securities and Exchange Commission (BSEC) has framed draft amendments to the BSEC (Margin) Rules, proposing fundamental relaxations to make margin loans more accessible for investors and to expand lending capacity for market intermediaries. The proposed changes aim to eliminate practical operational complexities, foster an investor-friendly framework, and boost liquidity across the country's capital market. Key Proposals in the Draft Rules Extension to Low-Dividend Companies: Under the draft rules, investors will be eligible for margin loans to purchase shares of B-category companies even if the companies pay less than a 5 percent dividend. Currently, only B-category companies paying a minimum 5 percent dividend qualify for margin finance. Lower Minimum Account Threshold: The required minimum equity value in a Beneficiary Owner (BO) account to qualify for margin loans is set to be reduced to Tk 3 lakh from the current requirement of Tk 5 lakh held for a minimum of one year. Higher Intermediary Lending Cap: Stockbrokers and merchant banks will be allowed to disburse margin loans up to five times their core capital or net worth, up from the existing cap of three times. Removal of Free-Float Cap Requirement: The mandatory requirement for a listed company to maintain a minimum Tk 50 crore in free-float market capitalisation to qualify for margin loans will be scrapped. Single Stock Exposure Limit Raised: The maximum margin exposure limit for a single stock is proposed to be increased to 20 percent from the existing 15 percent. Adjustment to Maintenance Margin: A margin call will be triggered when a portfolio's value falls below 70 percent, down from the existing 75 percent threshold. The compulsory forced-sale trigger remains unchanged at 50 percent. P/B Ratio Limits for Financial Institutions: While non-financial companies will retain the maximum Price-to-Earnings (P/E) ratio limit of 30, financial institutions will be evaluated using the Price-to-Book (P/B) ratio. Banks and financial institutions with a P/B ratio exceeding 3 will be excluded from margin financing, while insurance companies will face a P/B cap of 1. The BSEC noted that the draft amendment was approved in principle during its 913th meeting and has been published to solicit public feedback and opinions from market stakeholders before finalization.  

The Dhaka Stock Exchange (DSE) PLC has awarded FIX certification to five more brokerage houses, paving the way for them to launch their own Order Management Systems (OMS) through API connectivity. The newly certified firms are Emperor Securities & Wealth Management Ltd, Global Securities Ltd, Md Fakhrul Islam Securities Ltd, SIBL Securities Limited, and Stock & Bond Limited. DSE Chief Technology Officer Asifur Rahman handed over the certificates to the brokerage houses at a ceremony held at the DSE boardroom on Wednesday. With the latest additions, the total number of brokerage houses that were awarded FIX certification has risen to 66. Of them, 56 houses have already gone live with their own OMS through API connectivity after receiving the certification. The DSE took the initiative to launch the API-based Broker House Order Management System (BHOMS) in 2020, after which 93 brokerage houses applied for API connectivity with the Nasdaq matching engine to trade through their own order management systems. The FIX (Financial Information eXchange) certification allows brokerage houses to connect their proprietary trading platforms directly to the exchange's matching engine, enabling faster and more efficient order execution for investors.

The Dhaka Stock Exchange (DSE) closed higher on Monday, the second trading day of the week, as its key index and most listed companies posted gains, even though overall turnover declined. The DSE's benchmark index, DSEX, rose 22 points during the day's trading. The Shariah-based index, DSES, remained unchanged, while the blue-chip index DS30 gained 8 points. DSE terminates 17 employees as part of long-term restructuring, says exchange Prices advanced for the majority of listed firms, with 199 companies seeing their share prices rise, against 129 that declined and 64 that remained unchanged. Shares and units worth Tk 908 crore changed hands on the DSE, down from Tk 964 crore in the previous session, a fall of Tk 56 crore in a single day. Northern Islami Insurance PLC topped the gainers' list, rising nearly 10 percent, while People’s Leasing and Financial  Services Ltd led the losers, shedding 9 percent. Meanwhile, the Chittagong Stock Exchange (CSE) also ended in positive territory, with its all-share index CASPI adding 10 points. However, unlike the DSE, price declines outnumbered gains at the CSE – 99 companies saw their share prices fall, compared to 85 that rose, while 28 remained unchanged. Turnover at the CSE stood at Tk 35 crore, up from Tk 31 crore in the previous session. City Insurance PLC topped the CSE gainers, rising 10 percent, while Uttara Finance & Investments Limited and Prime Finance & Investment Ltd tied at the bottom, each losing 10 percent.

Bangladesh's stock market opened the week on a bearish note on Sunday, with both the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) recording sharp falls in their key indices as share prices declined for most listed companies. The DSE's benchmark index, DSEX, fell 38 points during the day's trading. The Shariah-based index, DSES, dropped 6 points, while the blue-chip index, DS30, lost 14 points. Of the 392 companies traded on the DSE, 286 saw their share prices fall, 79 posted gains, and 27 remained unchanged. Overall turnover on the DSE declined, with shares and units worth Tk 964 crore changing hands during the day, down from Tk 1,147 crore in the previous session. Nitol Insurance PLC topped the DSE gainers' list, rising nearly 10 percent, while Peoples Leasing and Financial Services Limited was the worst performer, losing more than 8 percent. The CSE also witnessed a steep fall, with its overall index, CASPI, shedding 106 points. Prices fell for the majority of companies on the CSE, with 139 issues declining against 52 advancing and 24 remaining unchanged. Turnover on the CSE, however, edged up slightly, with shares and units worth Tk 31 crore traded during the day, compared to Tk 29 crore in the previous session. Bangladesh Lamps PLC led the CSE gainers, rising close to 10 percent, while Envoy Textiles Limited posted the sharpest decline, losing 10 percent.  

The Dhaka Stock Exchange (DSE) closed the week with its key indices in positive territory, but the banking and financial institutions sector failed to recover from the previous week's slump, according to the bourse's weekly Market Pulse report. Over the five trading sessions through July 30, the benchmark DSEX index rose 91 points, while the blue-chip DS30 index gained 24 points and the Shariah-based DSES index added 12 points. General investors, institutions to access private bonds, funds through DSE's new PI category Compared with the corresponding period last year, DSEX has climbed 21 percent so far this year, with DS30 and DSES each up 19 percent. Despite the index gains, average daily turnover slipped slightly week-on-week, falling to around Tk 1,060 crore from Tk 1,063 crore in the previous week. Prices rose for the majority of listed companies during the week, 264 stocks advanced against 35 that declined, while 89 remained unchanged. Market capitalisation increased by Tk 3,863.75 crore over the week. However, the banking sector could not shake off its earlier losses, with bank stocks falling nearly 14 percent and non-bank financial institution (NBFI) shares dropping more than 35 percent. Life insurance stocks slid 37 percent even as general insurance shares climbed about 20 percent. Corporate bond prices surged 78 percent, while mutual fund prices fell around 20 percent. Elsewhere, pharmaceuticals and chemicals shares dropped 14 percent, and paper and printing stocks fell more than 35 percent. The fuel and power sector declined nearly 28 percent, and tannery industry shares were down 19 percent. EXIM First Mutual Fund topped the week's gainers' list, posting a weekly return of about 37 percent, while Renwick Jajneswar & Co (Bd) Ltd. finished at the bottom, losing roughly 13 percent. The mixed sectoral performance underscores a market still searching for balance, broad-based investor appetite is lifting the headline indices and pushing up overall market capitalisation, but confidence in the financial sector, particularly banks and NBFIs, remains fragile. Analysts will likely watch whether this divergence narrows in the coming weeks, as sustained weakness in financial stocks, a heavyweight segment of the DSE could cap further index gains even if broader sentiment stays positive.

The country's stock markets closed the week on a downbeat note on Thursday, with both the Dhaka and Chattogram bourses recording sharp declines as prices fell for the majority of listed companies. The Dhaka Stock Exchange's (DSE) benchmark index, DSEX, shed 66 points during the day's trading. The other two indices also slid, with the Shariah-based DSES falling 16 points and the blue-chip DS30 losing 23 points. All three DSE indices posted declines of more than 1 percent compared to the previous session. Of the issues traded, 310 companies saw their share prices fall, while 59 advanced and 20 remained unchanged. Turnover at the DSE also dropped sharply, falling by around Tk 300 crore from Wednesday. The bourse saw transactions worth Tk 930 crore on Thursday, down from Tk 1,211 crore a day earlier. M.L. Dyeing Limited topped the gainers' list, rising nearly 6 percent, while Shyampur Sugar Mills Ltd was the worst performer, losing about 9 percent. The Chittagong Stock Exchange (CSE) mirrored the downturn, with its overall index CASPI falling 158 points. Of the companies traded, 186 declined, 54 advanced, and 22 remained unchanged. Total transactions on the CSE stood at Tk 20 crore, up from Tk 16 crore the previous day. GSP Finance Company (Bangladesh) PLC led the gainers on the CSE, rising nearly 10 percent, while Usmania Glass Sheet Factory Limited was the top loser, falling by a similar margin.

Bangladesh Securities and Exchange Commission (BSEC) held a meeting with a visiting International Monetary Fund (IMF) technical assistance team on Wednesday, exploring ways to expand green and sustainability bonds in the country's capital market. BSEC Commissioner Tanwir Habib Rahman led the commission's side at the meeting at BSEC while the IMF delegation was headed by mission team leader Suphachol Suphachalasai. The discussion centred on developing Bangladesh's green bond, sustainability bond and other thematic bond markets, with both sides also exchanging views on progress in sustainable finance taxonomy, impact reporting, strengthening external review systems, identifying prospective issuers, assessing investor demand, and improving coordination among regulators and development partners. Participants stressed expanding the capital market's role in strengthening sustainable financing and climate-resilient investment structures in Bangladesh. The meeting concluded with a productive discussion on capacity building, policy development, and strengthening market infrastructure in line with international best practices.

The DSE Brokers Association of Bangladesh (DBA) has welcomed the initiative of the Bangladesh Securities and Exchange Commission (BSEC) to amend the Bangladesh Securities and Exchange Commission (Margin) Rules, 2025. In a message on Saturday, the DBA said the pragmatic and market-friendly initiative marks a positive step for the country's capital market. It said the amended Margin Rules, 2025 would help establish a balanced, modern and forward-looking regulatory framework that would play a significant role in ensuring the orderly, transparent and sustainable development of Bangladesh's capital market. The association expressed hope that the draft of the amended margin rules would soon be published to seek public opinion, adding that it would submit detailed feedback and recommendations to the commission after reviewing the draft, if deemed necessary. DBA President Saiful Islam said the association fully supports the reform initiatives undertaken by the BSEC to make Bangladesh's capital market stronger, more modern and investment-friendly. He said the DBA would remain ready to work closely with the BSEC on all necessary reform initiatives for the development of the country's capital market in the future as well.

The Bangladesh Securities and Exchange Commission (BSEC) on Thursday clarified that the proposed amendments to the margin rules remain in draft form and have not been finalised, describing what it called incomplete and misleading media reports on the matter. In a press release, it said the 1,020th commission meeting approved a draft proposal to amend the Bangladesh Securities and Exchange Commission (Margin) Rules, 2025. However, before the draft could be published for public feedback, several media outlets carried incomplete, confusing and unrealistic information about the changes, creating unwarranted uncertainty among investors, it said. The commission said the core objective of the amendment is to remove practical and operational complications that have emerged during implementation of the existing rules, and to make the regulations simpler, more effective and more realistic, thereby easing their application for stakeholders across the market. The BSEC noted that in drafting the amendment proposal, it took into account the opinions and practical experiences of margin facility users, stock brokers, merchant banks, and other market intermediaries and stakeholders. The commission's goal, it said, is to establish an effective, realistic and investor-friendly margin management framework. The regulator further clarified that the amended draft rules have yet to be finalised. The draft approved by the commission will soon be published in national dailies and on BSEC's website for public opinion. Only after reviewing feedback from stakeholders and the general public, the amendment to the Margin Rules, 2025 will be finalised, it said. The BSEC urged all concerned to refrain from publishing speculative or partial information about the amended rules before the public opinion process begins, saying such reports create unnecessary confusion. The commission expressed confidence that once the actual draft is published, all stakeholders will get a clear picture of the purpose, scope and rationale behind the amendment. The BSEC said it has always worked to give top priority to the interests and safety of investors, and that the amendment to the margin rules is a continuation of that same policy.

Both Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) closed lower on Thursday, the last trading day of the week, snapping a four-session winning streak, with overall turnover also declining on both bourses. The DSEX, the benchmark index of the DSE, shed 25 points during the day's trading. The Shariah-based index DSES fell 2 points, while the blue-chip index DS30 dropped 15 points. Losers dominated the trading floor, with 240 companies witnessing price declines against gains in 103, while 52 issues remained unchanged. Turnover on the DSE fell to Tk 1,118 crore from the previous day's Tk 1,515 crore. Techno Drugs Limited topped the gainers' list on the DSE, rising nearly 10 percent, while Usmania Glass Sheet Factory Limited was the worst performer, losing more than 9 percent. The CSE also closed in negative territory, with its general index CASPI falling 55 points. Here too, losers outnumbered gainers, with 116 companies posting price declines against 86 advancing, while 22 remained unchanged. Turnover on the CSE stood at Tk 18 crore, down from Tk 32 crore the previous day. Techno Drugs Limited also led the gainers on the CSE, rising nearly 10 percent, while Hamid Fabrics PLC was the top loser, shedding close to 10 percent.