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The Financial Express

Investors can take margin loan against mutual fund: BSEC

| Updated: November 25, 2020 16:41:11


Evaly and Fianancial Express Evaly and Fianancial Express
Investors can take margin loan against mutual fund: BSEC

The investors can avail the margin loan facility against the listed mutual funds (MFs) as the securities regulator's latest directive in this regard remains effective.

The Bangladesh Securities and Exchange Commission (BSEC) on Monday said this in a clarification issued to remove ambiguity on the disbursement of margin loans against the units of listed MFs.

The BSEC said the investors had availed margin loan facility against the units of listed MFs before October 26, 2009.

"Later, the margin loan facility was closed on October 26, 2009 following a regulatory directive," the BSEC said.

Later, the directive regarding the suspension of margin facilities against the units of listed MFs was withdrawn on December 30, 2010.

"The directive issued on December 30, 2010 restored the margin facility again. That directive still remains effective," the BSEC said in its clarification.

Asked, BSEC executive director (in charge) Mohammad Rezaul Karim said the clarification has been issued to remove rumours spread in the market.

"Investors have the scope of availing margin facility against listed MFs. Now, it will depend on the lenders whether they would disburse margin loans against the MFs or not," said Mr Karim, also the BSEC spokesperson.

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