Stocks’ floor price for block market eased
Bangladesh Securities and Exchange Commission (BSEC) has eased floor price for the block market, which will allow shares to be traded at 10 per cent lower price than the open market.
The floor price is the lowest price at which a stock can be traded.
In July, the stock market regulator set the floor price for each stock to halt the free fall of the market indices amidst global economic uncertainties.
The floor price was fixed on the basis of the average of the closing prices on July 28 and the preceding four days.
Now, the price of shares can be traded in the block market at 10 per cent lower rates than the open market, the BSEC said.
The new rule will be effective immediately, according to the order issued by the regulator today.
Considering the current market situation, the exchanges may allow the clients of block market to transact at up to 10 per cent lower rate than the floor price on the existing circuit breaker system, it said.
The block market is a platform of an exchange where a large number of stocks are traded in a single transaction at a negotiated price without affecting the index.