The Bangladesh Securities and Exchange Commission (BSEC) has issued a gazette notification introducing new margin loan regulations, with a relaxed enforcement period to help the market adjust smoothly.

Under the new rules, investors will have six months to one year to sell shares that are no longer eligible for margin loans. The regulator designed the transition period to ensure investors can adapt to the changes without disruption.

Market insiders said investors had been uneasy ahead of the gazette publication, fearing forced sales of non-marginable shares to adjust outstanding loans. The relaxed implementation has eased those concerns.

According to the new rules, investors must have a minimum portfolio of Tk 5 lakh to qualify for margin loans or to buy shares on credit. Those with smaller portfolios who have already taken margin loans will be required to raise their investment to Tk 5 lakh within a year.

Investors with portfolios below Tk 10 lakh can borrow up to 50 percent of their own investment under the new system.

The rules also stipulate that if an investor’s portfolio value falls to 50 percent of their equity, a “force sell” will be triggered—meaning shares may be sold automatically to maintain loan ratios. A “margin call” will be issued when portfolio value drops to 75 percent. Lenders will retain the right to sell shares if necessary to maintain the required margin ratio.