2024-05-11 22:30:29
Considering the current situation in the capital market, it has been decided to extend the period of the provision conservation facility of the state investment institution Investment Corporation of Bangladesh (ICB) against unreimbursed losses due to revaluation in its own portfolio. Bangladesh Securities and Exchange Commission (BSEC) has extended this facility till December 31, 2025.
According to reliable sources, this decision was taken in the recently held commission meeting.
As per the decision of BSEC, in view of the application of Investment Corporation of Bangladesh, it was decided to extend the period of keeping provision against unrecovered losses due to revaluation in own portfolio till 31st December 205, subject to submission of consolidated financial report of the company to the Commission.
Apart from this, it was also decided to consider the ability of the consolidated financial report of the respective year in discussion with the commission before declaring the dividend and profit based incentives as per the conditions mentioned in the commission letter on November 2, 2022. The concerned department of BSEC will take necessary measures in this regard.
It is known that after the stock market crash of 2010, many investors who traded shares with margin loans lost their capital. In this, the reverse investors became debtors to ICB. Now as investors ICB has two avenues to get back the stuck money. One is to sell all the shares from the investor’s account. The other is to gradually reduce debt by keeping provisions against losses as investors. However, selling the shares will increase the selling pressure in the capital market and ICB’s capital will become negative. Therefore, with the aim of solving this problem, considering the current market conditions, BSEC has extended the deadline for keeping the reserve provision against the unrecovered loss due to revaluation in ICB’s own portfolio till 31st December 2025.
Earlier, on March 28 this year, considering the current situation in the capital market, BSEC has extended the period of reserve provision facility against unreimbursed losses due to revaluation in margin loan portfolios of stockbrokers and merchant bank customers (investors) till December 31, 2025.
It may be noted that in a BSEC directive issued on March 15, 2023, the tenure of reserve provision facility against unreimbursed losses on revaluation of own margin loan portfolios of stockbrokers and merchant banks has been extended till December 31, 2025.