The Bangladesh Securities and Exchange Commission (BSEC) is set to ease several existing restrictions on the disbursement of margin loans in the capital market.
To this end, the regulatory body has finalized the draft of the amended margin loan rules.
At the same time, the Commission has given policy approval to introduce "Scrip Netting" in the market, which, once implemented, will allow investors to buy and sell a specific stock multiple times on the same day.
These decisions were made during a Commission meeting held on Tuesday. The draft of the amended rules will soon be published to gather public opinion.
Notably, the margin loan rules were last amended and gazetted on November 6, 2025.
According to the proposed amendments, the existing restriction on receiving margin loans for "B" category shares—which pay less than a 5% dividend and where an investor must have a minimum investment of Tk5 lakh for at least one year—is being withdrawn.
Additionally, provisions are being made to allow investors to purchase non-marginable shares using cash within a margin account.
Several other changes have also been proposed to eliminate operational complexities in the rules.
During the meeting, the Commission approved the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) to launch Scrip Netting.
This facility will enable an investor to buy a stock and subsequently sell it once or multiple times, or trade it again, within the same trading day.
However, this facility has been approved subject to strict compliance with risk management guidelines and existing legal frameworks.
DSE managing director Nuzhat Anwar stated that while the Commission has granted approval, it will not go into effect immediately. It will take at least four months to develop the necessary software.
Initially, there are plans to introduce this facility for around 30 blue-chip stocks.
A section of market stakeholders noted that the purpose of last year's amendment was to discourage margin loans, and the new proposal represents a shift away from that stance.
They expressed concern that due to a prolonged shortage of Initial Public Offering (IPO) supply, this could create excessive demand for the same shares, risking abnormal price hikes.
Speaking on the condition of anonymity, an official from a leading brokerage house said that the prices of many shares have risen by two to eight times over the last three to six months.
Under such circumstances, easing margin loans and introducing Scrip Netting could fuel excessive speculation and market manipulation. Simultaneously, it will increase the commission income of brokerage houses and merchant banks.
However, BSEC executive director and spokesperson Abul Kalam explained that the primary goal of amending the rules is to resolve practical and operational complexities, not to generate artificial or abnormal demand in the market.
On the other hand, CSE managing director Saifur Rahman Mazumdar believes that while Scrip Netting might create some demand at the start of the day, the option to sell the shares on the same day will also increase market supply.
This, he argued, will ease upward price pressure and keep the market balanced.
The amended draft has also introduced changes to the market's Price-to-Earnings (P/E) ratio provisions.
A proposal has been made to maintain the P/E ratio limit at 30 for marginable securities.
Additionally, the draft proposes lifting the existing ban that prevents homemakers and students from obtaining margin loans.
