The Bangladesh Securities and Exchange Commission (BSEC) has expanded the coverage of the credit facility to six companies, aiming to invigorate the sluggish market. The new provision allows margin loans for investment in companies with a price-to-earnings (P/E) ratio greater than 40 but below 50. Previously, the credit facility was limited to companies with a P/E ratio of 40 and below.
To qualify for the extended loan coverage, the newly included marginable stocks must have a minimum paid-up capital of Tk 300 million and have been listed under category ‘A’ for the past three years. The six companies benefiting from this revised provision are Bangladesh Steel Re-Rolling Mills, Saif Powertec, aamra technologies, Fortune Shoes, United Insurance Company, and S. Alam Cold Rolled Steels. This move aims to inject new momentum into the sluggish markets and stimulate investor interest. It is expected to facilitate investment opportunities and promote growth in these selected companies. Business professionals can monitor the performance and prospects of these companies to make informed investment decisions.