Stock market investors demonstrated in different merchant banks and brokerage houses in the capital yesterday against the latter’s failure to supply loan in line with the Securities and Exchange Commission’s (SEC) new directive.

The SEC, market regulator, on Monday increased the ratio of share credit to 1:2 from 1:1.5 to increase purchasing power of the stock investors.

The decision was followed by a massive 660-point fall in the key index of the Dhaka Stock Exchange (DSE) on Monday that prompted its regulator to suspend trading.

Investors’ demonstration led to a trade suspension of Al-Arafah Islami Bank and IDLC Securities for some time as lenders could not supply credit in line with the new directive yesterday.

Ekramul Haque, managing director of Al-Arafah, told daily sun they could not provide with loan at the new credit ratio due to fund shortage. “We will be able to overcome fund shortage by February”, he added.

Besides, Prime Bank Investment and Uttara Finance and Investment also faced demonstration for this.

BRAC EPL Investment Limited confessed that it could not provide loan following the new directive for fund shortage.

Small scale investors also alleged that merchant banks and brokerage houses gave loans to the bigwigs instead of them.

“We do not have Aladdin’s magic lamps that over night we can manage enough fund to meet the investors’ demand, said a merchant banker preferring not to be named. “The problem will be resolved but it will take time”.

Money market is still tight as the lenders are borrowing money at high rate fixed by the central bank, said Akter H Sannamat, managing director of Prime Finance and Investment Ltd.

Source: Daily Sun/  Bangladesh/ Jan-12-11