The government taskforce on capital market reforms submitted its final recommendations on margin rules yesterday, bringing minimal changes to an initial draft.

 Last February, the committee submitted the draft recommendations to the Bangladesh Securities and Exchange Commission (BSEC).

 A member of the taskforce said the final recommendations were not that much different from the initial draft, as none recommended any major change.

The committee submitted the recommendations after incorporating suggestions availed through consultations with market stakeholders.

The broker community provided a separate set of recommendations, which were similar to those of the taskforce.

As a result, the final recommendations were not that different from the initial draft, said the taskforce member, adding that they also shared their opinions on the changes.

Now, the BSEC will finalise the amendments to the margin rules of 1999 and ensure their implementation in the market, he added.

According to the proposal, margin loans will be available only to investors who have a minimum equity of Tk 10 lakh and at least six months of experience in the secondary market.

The proposed changes aim to introduce stricter eligibility criteria, improve risk management, and enhance transparency in margin trading.

The reforms are intended to stabilise the capital market and protect investors from excessive speculation. A key component of the reform is the restructuring of eligible collateral, according to the taskforce.

The proposed framework allows margin financing against cash, listed A-category stocks, corporate bonds with a minimum BBB+ rating, and government securities.

 However, securities under legal restrictions or lock-ups, highly speculative or illiquid stocks, and companies nearing insolvency will be excluded.