DSE names 138 marginable stocks as new lending rules take effect
Under revised rules, A- and B-category companies are eligible for margin loans if their P/E ratios remain within 40.
The Dhaka Stock Exchange (DSE) has issued a fresh list of 138 marginable securities, providing a clear roadmap for investors and brokerage houses under the newly implemented regulatory framework.
The updated list, which details the companies qualifying for credit facilities, follows the recent gazette notification of the "Bangladesh Securities and Exchange Commission (Margin) Rules, 2025." This overhaul is aimed at boosting market liquidity and restoring investor appetite by providing more flexibility in leverage-based trading. Among the 138 firms, eight are from B category.
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Under the revised rules, shares of listed companies in the 'A' and 'B' categories are now eligible for margin loans if their price-to-earnings (P/E) ratio remains within 40. This is a significant shift from previous restrictions, allowing a broader range of fundamentally sound companies to be traded with borrowed funds.
Furthermore, the regulator has addressed specific concerns in the insurance sector by raising the maximum allowable price-to-book (P/B) ratio for life insurers to 3, a significant jump from the initially proposed limit of 1. This ratio is calculated by dividing the latest closing price by the audited net asset value per share.
The newly released list is dominated by the market's most robust entities. Telecommunication giants Grameenphone and Robi Axiata, along with blue-chip manufacturing and consumer firms like British American Tobacco, Walton Hi-Tech, and Berger Paints, are prominent features. The pharmaceutical sector also maintains a heavy presence with market leaders such as Square Pharma, Beximco Pharma, Renata, and IBN SINA included in the marginable bracket.
Leading commercial lenders, including BRAC Bank, City Bank, Eastern Bank, Dutch-Bangla Bank, and Pubali Bank, continue to be staples for margin investors, alongside top-tier non-bank financial institutions like IDLC and IPDC Finance.
In the energy segment, investors can avail of loans for state-owned fuel distributors like Padma, Jamuna, and Meghna Petroleum, as well as United Power and MJL Bangladesh. The list further encompasses major players in the steel and cement sectors, such as BSRM Steels and LafargeHolcim, as well as technology firms like ADN Telecom and Genex Infosys.
However, the BSEC has maintained a cautious approach regarding riskier segments of the market. Securities categorised under 'Z' (junk stocks), 'N' (newly listed), and 'G' (greenfield) remain strictly excluded from margin facilities. Additionally, shares traded on the SME board, Alternative Trading Board (ATB), and the Over-the-Counter (OTC) platforms do not qualify for credit due to their relatively higher risk profiles and lower liquidity.
