Flash Report /
Bangladesh

Bangladesh: Floor price removed for 66 stocks – A move to increase liquidity

  • The floor price is removed for 66 stocks which market price is below BDT 50 and stuck at the floor price

  • 110 stocks were stuck at the floor price when BSEC took the decision

  • The move is intended to improve the overall market liquidity

IDLC Securities
8 April 2021
Published byIDLC Securities

The Bangladesh Securities and Exchange Commission (BSEC) has removed the floor price for 66 stocks out of a total of 110 stocks that were stuck at the floor price. This floor price removal is intended to improve the overall market liquidity.

At this moment, the floor price is removed for shares with a market price below BDT 50 and the price is stuck at its floor price. According to a press coverage quoting senior BSEC official, in the next phase floor price will be withdrawn for stocks whose price is below BDT 100 and stuck at the floor price. 110 stocks were stuck at the floor price when this decision was taken.

In March 2020 when the pandemic started BSEC introduced this floor price rule to stop the free fall of the stock prices. It was modified in Feb 2021 to adjust the bonus or right share issuance.

Table 1: List of companies with no floor price