The Bangladesh Securities and Exchange Commission (BSEC) has decided to extend the exemption period for keeping provisions on unrealised losses or negative equity for stock brokers, merchant bankers, and portfolio managers until December 31, 2025.

The exemption will be available on the condition of submitting a specific and acceptable action plan on how and when the provision will be made.

The guideline will need to be approved by their own board of directors and submitted before June 30, 2025.

The stock market regulator made the decision today at a commission meeting held at its office in the capital.

The BSEC extended the exemption period in response to demands from stock brokers and merchant banks, according to a press release issued today.

The deadlines for allowable provisioning against negative equity and unrealised losses expired in December 2024 and February 2025, respectively.

Full provisioning against unrealised losses in dealers' portfolios would compel almost all brokers in the industry to recognise substantial and unsustainable losses at once, although some part of it is actually contingent upon market sentiment.

On this basis, brokers and merchant banks were urging an extension of the exemption period so they could finalise their financial reports for 2024.