Stock market regulator lifts floor prices for 66 companies

The Bangladesh Securities and Exchange Commission (BSEC) has withdrawn the floor prices for 66 companies set a year ago when the market was in free fall caused by the first wave of the Covid-19 pandemic.

“In the interest of investors and to make the stock market vibrant, the floor prices for 66 companies have been withdrawn initially,” said the stock market regulator in a statement on Wednesday.

At present 110 companies remain stuck in the floor prices. Of these, 66 were withdrawn. The floor prices slapped on other companies might be lifted in phases, sources said.

In March last year, the regulator set the floor prices of listed securities to arrest abnormal price fall. As per the guidelines, the opening price of any listed security was fixed at the average of the closing price of immediate preceding five trading days of March 19, and the average price calculated for each security was considered as floor price and the lowest limit of the circuit breaker.

Under the floor price system, there is no scope for the buyers to securities at the desired prices.

Earlier, the regulator relaxed the floor price limit for the block market, which benefited the big investors.