Regulator relaxes rules of provision for merchant banks
The stockmarket regulator yesterday relaxed the rules of provision for merchant banks' investment in mutual funds.
Now, the merchant banks can keep the provision on the basis of the net asset value of the funds like other financial institutions.
The provision would be equivalent to the difference between the purchasing price of a mutual fund and 85 percent of the fund's net asset value.
The net asset value will be calculated on the basis of the current market price, the Bangladesh Securities and Exchange Commission said in a statement.
The decision will bring some relief for the merchant banks as they now have to maintain a lower provision, industry insiders said.
The capital market watchdog also approved a new set of rules for companies with small capital yesterday, for which a gazette will be published soon. The commission also plans to issue a letter to rebuke the AM Securities and Financial Services for its failure to submit yearly financial statements on time.
In the letter, the BSEC will also warn the stock broker that stern actions will be taken if it does the same in future. The commission has taken the decision when the benchmark index of the DSE—DSEX—rose 41.72 points or 0.79 percent to close the day at 5,298.83.
The Dhaka stocks have been rising for the last three consecutive days, although the turnover declined by 10.7 percent to Tk 717.15 crore yesterday. Khulna Power was the top traded stock with 67.39 lakh shares worth Tk 52.71 crore changing hands followed by Brac Bank, United Power, Shepherd Industries and SK Trims.
Desh Garments was the day's best performer with a 9.95 percent gain while Golden Harvest was the biggest loser, shedding 11 percent.
Gainers outnumbered losers by 159 to 124, while 40 securities remained unchanged.
However, the key index of the port city bourse rose 68.44 points or 0.69 percent before finishing the day at 9,850.09.
The port city bourse traded 97.88 crore shares and mutual fund units worth Tk 27.09 crore.
