BSEC

The Bangladesh Securities and Exchange Commission (BSEC) has approved revised margin lending rules, setting a maximum price-to-earnings (P/E) ratio of 40 for margin-eligible shares across all sectors except life insurance.

People familiar with the matter said the revised rules were approved at the commission’s regular meeting today (11 August) and are expected to be sent to the Bangladesh Government Press (BG Press) on 13 August for gazette publication.

The rule-making team has been given two days to finalise the regulations before publication, according to the sources. However, BSEC Executive Director and spokesperson Abul Kalam told TBS he was unaware of the matter.

Under the revised framework, the P/E ratio will be the key valuation criterion for determining margin loan eligibility for banks, non-life insurers and companies in other sectors. The condition will not apply to life insurers.

The rules introduce a trailing P/E ratio, calculated using the current share price against earnings per share (EPS) generated over the previous 12 months. The ratio will be updated when companies publish new quarterly financial results.

The revised framework drops the price-to-book (P/B) ratio as an eligibility criterion for banks and non-life insurers. The earlier draft had proposed maximum P/B ratios of 3 for banks and 1 for insurance companies.

The draft rules had triggered price adjustments in several margin-eligible stocks, with market participants saying the impact spread to the broader market.

The revised rules also give investors more room before their securities can be liquidated. A margin financier must issue prior notice if an investor’s equity falls below 50%. If equity subsequently falls below 25%, the financier can liquidate the securities without prior notice.

The earlier draft had proposed a margin call below 70%, followed by a three-trading-day window to restore the required equity. It also allowed liquidation without prior notice once equity fell below 50%.

Despite the relaxed conditions, shares of Z, N and G category companies, as well as securities listed on the SME, ATB and OTC platforms, will remain ineligible for margin financing. Only A and B category shares on the main board will qualify.

For general securities, the margin financing ratio will be 1:1, allowing investors to borrow an amount equivalent to their own equity. Life insurers will have a separate margin financing arrangement.

The revised framework is expected to improve liquidity and investors’ purchasing power, although greater leverage could also increase speculative trading and forced-selling risks during market downturns.

https://www.tbsnews.net/economy/stocks/bsec-clears-revised-margin-rules-sets-pe-cap-40-1512521

Solar Equity Venture has signed an issue management agreement with LankaBangla Investments and Southeast Bank Capital Services Limited to raise capital through an initial public offering (IPO).

The agreement was signed on Sunday in the capital by Ezaz Al Qudrat A Mazid, managing director of Solar Equity Venture; Iftekhar Alam, CEO of LankaBangla Investments; and Md. Mominul Haque, CFA, managing director of Southeast Bank Capital Services Limited, according to a press release.

LankaBangla Investments and Southeast Bank Capital Services Limited will work as joint issue managers. Solar Equity Venture was founded with a clear vision– to accelerate Bangladesh’s transition toward a clean, resilient, and sustainable energy future, reads a press release.

Building on the extensive experience and proven track record of its sponsor company, Solar EPC Development Ltd., Solar Equity Venture combines renewable energy project development expertise with innovative investment solutions to unlock scalable clean energy opportunities. “Since 2018, our team has successfully developed, financed, engineered, procured, constructed, and managed high-quality solar energy projects across Bangladesh, creating a strong foundation for the company’s next phase of growth,” said Mr Mazid.

“This strategic partnership represents an important milestone in our journey to build a scalable and institutionally structured renewable energy investment platform, mobilise long-term capital, expand our clean energy portfolio, and create sustainable value for investors and stakeholders,” he noted.

“Together, we aim to contribute meaningfully to the growth of Bangladesh’s renewable energy sector and capital market while advancing the country’s clean energy transition,” he added.

Solar Equity Venture believes that by establishing an effective link between renewable energy and the capital market, it will be possible to create new opportunities for domestic and foreign investors to participate in the growth of Bangladesh’s clean energy sector.

https://thefinancialexpress.com.bd/bangladesh/non-viable-nbfis-investors-face-uncertain-future

BRAC Bank, one of Bangladesh’s most profitable commercial lenders and a preferred destination for foreign portfolio investment, is facing a sharp and sustained withdrawal of international capital despite record financial performance.

The bank has suffered five consecutive months of heavy foreign sell-offs. Analysts and industry insiders attribute the capital flight mainly to renewed regulatory intervention – particularly Bangladesh Bank’s reintroduction of a 4% interest-rate spread cap – as well as geopolitical uncertainty and strategic portfolio rebalancing.

Dhaka Stock Exchange data show foreign ownership falling steadily from 36.72% in February 2026, when the bank’s share price was rising strongly. Holdings declined to 36.48% in March after a Tk34 crore net sale, 36.22% in April after Tk40 crore was sold, and 35.89% in May following Tk50 crore in sales.

The retreat intensified in June, when foreign ownership fell to 34.69% after a Tk180 crore sell-off. By July, it had reached a multi-year low of 32.96%, with Tk250 crore worth of shares sold that month. Foreign institutional holdings now stand at Tk4,792 crore.

The aggressive divestment contrasts with BRAC Bank’s earnings. Annual net profit rose from Tk404 crore in 2020 to Tk465 crore in 2021, Tk614 crore in 2022 and Tk827 crore in 2023, before surging to Tk1,431 crore in 2024 and a record Tk2,250 crore in 2025. In the first six months of 2026, the bank generated Tk1,423 crore, outperforming all other listed local peers.

Infographics: TBS

Asif Khan, chairman of Edge Asset Management and former president of CFA Society Bangladesh, told The Business Standard that the initial foreign exit was triggered by broader geopolitical instability.

The Iran-US conflict raised concerns over energy security and Bangladesh’s macroeconomic stability, prompting foreign capital to retreat from domestic equities, including BRAC Bank. Although easing tensions helped stabilise share prices, regulatory changes delivered another blow to investor sentiment, he said.

On 29 June, Bangladesh Bank directed all commercial banks to limit their weighted average lending-deposit spread to 4%, saying the measure would curb borrowing costs and stimulate industrial activity. The Banking Regulation and Policy Department said the sector-wide spread had widened to 5.72%, with several lenders charging 7-9%.

Bangladesh Bank had removed a similar 4% ceiling in November 2023 as part of market reforms following the abolition of the SMART (Six-Month Moving Average Rate of Treasury Bills) framework in May 2024. The return to a fixed ceiling has therefore raised concerns over a reversal of market-oriented reforms.

Its abrupt reinstatement has disappointed international institutional investors who favour market-based pricing. Khan said foreign portfolio managers view such controls as unwelcome regulatory interference and warned that artificially imposed rate ceilings can produce sub-optimal outcomes and undermine investor confidence.

The measure is particularly significant for BRAC Bank, the country’s pioneer and market leader in SME financing. SME lending carries higher credit risks, operational overheads and monitoring costs than large corporate loans. Analysts warn that capping spreads could make lending to high-risk SME borrowers economically unviable, threatening the core business model of SME-focused lenders.

Although credit cards and consumer finance were exempted because of their elevated risk profiles, SME loans remain subject to the ceiling. Financial experts argue that SME portfolios should also be exempted to preserve credit flows to small businesses.

The IMF has reportedly advised Bangladesh Bank to remove the spread ceiling in favour of market-based pricing. Experts say restoring a market-based mechanism would also provide greater certainty for lenders and investors. Market participants expect foreign investor confidence and capital flows into leading banking stocks to recover if the central bank follows the recommendation and withdraws the mandate.

https://www.tbsnews.net/economy/stocks/regulatory-squeezes-trigger-foreign-exit-brac-bank-despite-record-profits-1509911

Kakhaber Benidze has been appointed as managing director of British American Tobacco Bangladesh, effective May 1 this year, succeeding Monisha Abraham, whose tenure was marked by strong business performance.

Mr Benidze brings more than 25 years of industry experience, including over 15 years in board-level management roles across the FMCG sector. Since joining BAT in 2001 as a mid-career recruit, he has held senior leadership positions in marketing, supply chain and general management, building a track record in commercial delivery, organisational transformation and stakeholder engagement across diverse markets.

https://today.thefinancialexpress.com.bd/public/stock-corporate/bat-bangladesh-appoints-new-md-1785863459

পুঁজিবাজারে তালিকাভুক্ত এস আলম কোল্ড রোলড স্টিলস লিমিটেডের কারখানার উৎপাদন কার্যক্রম সম্পূর্ণ বন্ধ। ঢাকা স্টক এক্সচেঞ্জের (ডিএসই) চিঠির জবাবে কোম্পানিটি এ তথ্য জানিয়েছে।

বৃহস্পতিবার (৬ আগস্ট) ডিএসই সূত্রে এ তথ্য জানা গেছে।

এর আগে গণমাধ্যমে গত ২ আগস্ট চট্টগ্রামে এস আলম গ্রুপের সব কারখানা বন্ধ ও শ্রমিক ছাঁটাইসংক্রান্ত সংবাদ প্রকাশের পর তালিকাভুক্ত এই কোম্পানিটির কাছে তাদের অবস্থান জানতে চেয়ে চিঠি দেয় ডিএসই।

চিঠির জবাবে কোম্পানিটি জানায়, তাদের নিয়ন্ত্রণের বাইরে সৃষ্ট বিভিন্ন অনাকাঙ্ক্ষিত পরিস্থিতির কারণে নিয়মিত উৎপাদন কার্যক্রম চালিয়ে যাওয়া সম্ভব হচ্ছে না।

কোম্পানির দাবি, ২০২৪ সালের ৫ আগস্টের পর কোনো পূর্বনোটিশ ছাড়াই তাদের ব্যাংক হিসাব জব্দ করা হয়। একইসঙ্গে ব্যাংকগুলো ঋণপত্র (এলসি) খোলায় বিধিনিষেধ আরোপ করায় প্রয়োজনীয় কাঁচামাল ও রাসায়নিক আমদানি ব্যাহত হয়। পাশাপাশি ধীরে ধীরে অধিকাংশ দক্ষ শ্রমিক চাকরি ছেড়ে দেওয়ায় উৎপাদন কার্যক্রম সম্পূর্ণ বন্ধ হয়ে যায়।

চিঠিতে আরও বলা হয়, সংকটের সমাধান হলে এবং স্বাভাবিক কার্যক্রম পরিচালনার সুযোগ সৃষ্টি হলে দ্রুত উৎপাদন পুনরায় শুরু করা হবে। এ বিষয়ে ডিএসইকে যথাসময়ে অবহিত করা হবে।

তবে কোম্পানিটি বলেছে, স্বল্প সময়ের মধ্যে উৎপাদন পুনরায় শুরু করা সম্ভব না হলে এর উল্লেখযোগ্য নেতিবাচক আর্থিক প্রভাব কোম্পানির ওপর পড়তে পারে।

এস আলম কোল্ড রোলড স্টিলসের উৎপাদন পুরোপুরি বন্ধ

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