Bangladesh regulator raises margin loan limit as stocks plunge

Bangladesh’s capital market regulator has increased the margin loan limit in an effort to increase liquidity in the market and counteract the recent dip in the stock market.

On Sunday, the Bangladesh Securities and Exchange Commission raised the loan limit to 100 percent from 80 percent, meaning that investors will now be able to get 100% of their investment as a loan.

The order will take immediate effect, according to the notice.

The stock market has seen a significant drop over the past few days. On Sunday, the Dhaka Stock Index’s DSEX dropped 115.56 points, or 1.84 percent, to hit an 11-month low.

The DSEX has dropped for the past seven consecutive working days, dropping 555 points, or 8.29 percent, from 6,700.