BB slashes bond investment limit

Bangladesh Bank (BB) has lowered the bond investment ceiling for the banks and companies to 5 (five) percent from 10 (ten) per cent.
"From now, bank-companies cannot invest in a single company's bond or debenture from the total amount of paid up capital, share premium, statutory reserve and retained earnings," said a BB circular issued here yesterday.  The bond or debenture will have to be approved by Bangladesh Securities and Exchange Commission (BSEC), the circular added. 
But, the circular would not be applicable to sub-debt instrument of the banks and companies.

BB slashes bond investment limit

Bangladesh Bank (BB) has lowered the bond investment ceiling for the banks and companies to 5 (five) percent from 10 (ten) per cent. From now, bank-companies cannot invest in a single companys bond or debenture from the total amount of paid up capital, share premium, statutory reserve and retained earnings, said a BB circular issued here yesterday. The bond or debenture will have to be approved by Bangladesh Securities and Exchange Commission (BSEC), the circular added. But, the circular would not be applicable to sub-debt instrument of the banks and companies.