The Bangladesh Securities and Exchange Commission (BSEC) has extended its margin loan limit from existing 80% to 100% to curb a massive fall in the bourses.
The new direction will be effective from Monday, BSEC said in a notice issued on Sunday.
As per the new directive, investors now will avail 100% loan (1:1) against their investment, which was 1:0.8 earlier.
Sources said that the market regulator revised the credit facilities to facilitate investors for purchasing shares in order to increase money flow to the stock market.
Due to investors' sell-off, the key index of the Dhaka Stock Exchange lost 556 points in the last seven days till Sunday.
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), plummeted on Sunday by 115 points, or 1.8%, to 6,142.
At the DSE, 21 stocks advanced, 345 declined and 13 remained unchanged.
The Chittagong Stock Exchange (CSE) also was in a falling trend. The CASPI, the all share price index of the port city bourse, plummeted 362 points, or 1.96%, to 18,077.
