Floor price completely removed

The regulatory body, the Bangladesh Securities and Exchange Commission (BSEC), has come up with the third step and completely removed the floor price (minimum price fall limit) from the capital market. At the same time, the BSEC has imposed normal circuit breakers (limits) on the rise and fall of prices of all companies, including lifting the floor.

The directive, signed by BSEC chairman Prof Shibli Rubaiyat-ul-Islam, was issued on Thursday (June 17th).

Earlier, in the first phase, on April 7 this year, the commission withdrew the floor price directive from 66 companies. The BSEC then lifted the directive from the remaining 30 companies on the floor price on June 3.

However, even after the floor was removed, new instructions were given to the circuit breakers of the companies. It is said that the prices of these companies can fall to a maximum of 2 percent per day. This too has been taken up by the commission in this instruction.

The BSEC, in its directive this year, has imposed the following circuit breakers for price rise and fall in the field of securities-

According to this guideline, the circuit breaker is 10 percent in the case of an organization within Tk 200. In other words, the price of the shares or units of the organization is within Tk 200, the price of those shares or units can increase or decrease by a maximum of 10 percent in one day.

Sunbd/NJ