Bangladesh Bank (BB) yesterday extended the deadline for banks to adjust investment exposure to non-productive sectors by a month to February 15.

The decision came hours after the Dhaka Stock Exchange suffered the biggest fall in its history.

“We have decided to extend the deadline to ensure a congenial environment for stock investors,” Ziaul Hasan Siddiqui, deputy governor of Bangladesh Bank, after an emergency meeting with the chairman of the Securities and Exchange Commission (SEC).

Also, the central bank extended the deadline from December 31 to January 15 for banks to submit statements on diversion of loans to the stockmarket.

SEC Chairman Ziaul Haque Khondker said yesterday's index fall was a 'massive correction'.

The SEC holds a meeting with stakeholders today to discuss the market situation.

Source: The Daily Star, Bangladesh/20th Dec 2010