The merchant bankers will get more time till September 30 to compensate small investors as the Securities and Exchange Commission (SEC) has extended the deadline.

The government earlier announced a bailout package to compensate small investors who incurred loses due to recent slump in stock market.

The commission also extended time till October 14 for Bangladesh Merchant Bankers Association (BMBA) and the bourses to submit comprehensive reports on scheme implementation.

The commission has sent letters to the concern authorities in this regard Sunday, said Saifur Rahman, executive and spokesperson of the commission.

Earlier on August 6, the commission issued circular signed by SEC Chairman Professor Dr M Khairul Hossain.

According to the SEC directives, the BMBA and the stock exchanges were asked to submit com-prehension reports on compensation package implementation by 14 October.

August 13 was the last date to compensate small investors who invested in stocks up to Tk 1 million by taking margin loans from merchant banks. The deadline has already expired.

The government announced a bailout package including waiver of 50 percent interest on margin loans to compensate retail investors who incurred losses due to the recent share market debacle.

The government declared that the interest to be waived within the calendar year of 2011 or the financial year 2011-12.

The government also offered to reserve 20 percent of all initial public offerings (IPOs) – both government and private – those appear in 2012 and 2013, for those small investors.

Daily Sun/Bangladesh/10-Sep-12