The Bangladesh Securities and Exchange Commission (BSEC) has eased one condition for trading shares on the small capital board to bring about more vibrancy.

Any investors registered with the stock exchanges' electronic subscription system and maintaining a minimum investment of Tk 20 lakh in listed stocks will be allowed to trade on the SME board, said a notification yesterday.

The investment figure can be calculated based on market value or cost, whichever is higher as per the portfolio statement, said the stock market regulator.

The DSE-SME, a small-cap board, was rolled out on April 30, 2019, so that small and medium enterprises (SME) having a paid-up capital between Tk 5 crore and Tk 30 crore could avail financing from the stock market.

Previously, the eligibility hinged on being registered and having an investment of at least Tk 50 lakh.

The Central Depository Bangladesh Ltd will provide detailed information of the eligible investors based on the minimum investment condition on a quarterly basis. The BSEC eased the condition in response to requests of several merchant banks.

Though it may bring about more vibrancy at the board, stock investors need to be cautious in investments and analyse the potentials of companies beforehand.