Floor price reintroduced for 169 stocks
The floor price was lifted in December last year to bring vibrancy to the market
The Bangladesh Securities and Exchange Commission (BSEC) has decided to reintroduce the floor price for 169 companies, which was earlier lifted in December last year.
At the end of July last year, the BSEC set the floor price of every stock to halt the free fall of the market indices amid global economic uncertainties.
The floor price was the average of the closing prices on July 28 of the year and the preceding four days.
However, in last December, the stockmarket watchdog lifted the floor price for 169 companies in order to bring vibrancy to the market.
The regulator had set the circuit breaker such a way that the stock prices do not drop more than 1 per cent based on the previous day's closing rates.
In this situation, many stocks were dropping by 1 per cent each day.
So, the regulator today issued a directive to the stock exchanges to return to the floor price regime.
"The opening price of the 169 companies shall be determined at the floor price that was set by the time of setting of floor price on July or at the average of the closing market price of such security from February 26 of 2023 to March 1 of 2023, whichever is lower," the directive read.
The price will be considered as the floor price of the companies and the lowest limit of the circuit breaker, it added.