The high court on Monday recalled an injunction on forced selling from leveraged accounts within half an hour of issuing it, clearing the way for a full hearing on the matter on Tuesday.
Two stock investors, Md Moshiur Rahman and Md Moududi Hasan, filed a fresh writ petition seeking a stay order on the newly implemented margin rules in the capital market. Their lawyer, Md Kamal Hossain, told The Times of Bangladesh that the High Court Bench of Justice Sikder Mahmudur Razi initially denied the stay prayer and instead issued an injunction on forced selling.
He said the court recalled the injunction shortly afterwards and fixed Tuesday for the hearing. Earlier, on 9 November, another group of investors challenged the legality of the new margin-loan rules issued by the Bangladesh Securities and Exchange Commission. A separate bench on 11 November rejected their stay plea and asked the respondents to explain within seven days why specific sections of the rules should not be declared unconstitutional.
The new rules impose tighter limits on how investors may borrow to buy shares and make forced selling mandatory for brokerage houses and merchant banks in cases of equity erosion during market downturns. Analysts warned that the reforms could trigger large-scale forced selling pressure and deepen volatility. The market has been falling sharply for two months, wiping out the gains made during the July–September rally.
Despite the prevailing uncertainty, the stock market closed higher on Monday, the same day the International Crimes Tribunal delivered a death sentence verdict against former prime minister Sheikh Hasina. The DSEX gained 0.90% to close at 4,774 points. Turnover rose to Tk348 crore from Tk298 crore in the previous session. Of the traded scrips, 322 advanced, 35 declined and 16 remained unchanged on the Dhaka Stock Exchange.
