Bangladesh Securities and Exchange Commission yesterday offered share netting facility for the same security and extended the deadline to provision unrealised losses of merchant banks and stockbrokers.

Share netting is a financial adjustment facility for same securities on the same trading day - investors can buy shares of the same company after selling on the same day. The decisions were taken at a meeting held at the BSEC office.

As per the decision, investors will get the scope to net same company shares on a single day only under the 'A', B', 'C and 'N' categories; the scope will not be given in trading 'Z' category shares.

The regulator allowed the share netting facility for same securities following a proposal made by both the bourses amid poor turnover values.The BSEC also gave a green light to the Tk 200-crore Non-convertible Subordinate Bond of Standard Bank and Tk 250-crore Mudaraba Subordinate Bond of EXIM Bank.

Both the banks will issue the bonds to fulfil the Basel-11 requirements to boost their capital base. Stockbrokers and merchant banks will get time up to December 31,2015 to provision unrealised losses counted in their own and clients' portfolios as on December 31,2014.

The merchant banks and stockbrokers have also been facilitated to complete such provisioning through five instalments

instead of one. “The regulator has extended the deadline for provisioning of unrealised losses following the proposals of Bangladesh Merchant Bankers Association and the premier bourse," the BSEC said in a statement.

The securities regulator also fined MP Spinning Mills Tk 10 lakh for breaching securities rules by issuing shares beyond the existing shareholders. First Securities Services, which worked as the manager to the MP Spinning Mills issue, will also have to pay a penalty of Tk 5 lakh. Earlier, the regulator scrapped the initial public offering proposal of MP Spinning Mills.