Flash Report /
Bangladesh

Bangladesh: Regulator reimposes floor price; applicable from 31 July

  • BSEC temporarily reimposed floor price which is to be applicable from 31st July 2022

  • The floor price of any listed security will be the average of the closing prices of the last five trading days

  • The floor price will be adjusted or diluted for stock dividend and right shares

Shopnil Paul
Shopnil Paul

Research Associate

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IDLC Securities
31 July 2022
Published byIDLC Securities
  • The Bangladesh Securities and Exchange Commission reimposed floor price which is to be applicable from 31st July 2022. The floor price of any listed security will be the average of the closing prices of the last five trading days. When applied, the price of any stock cannot go below its floor price though the upper limit of the circuit breaker remains unchanged. Usual circuit breaker will resume from 31st July, provided that it can't go below floor price. The applicable circuit breaker will be as follows:

  • The floor price will be temporary. The regulator first introduced the concept of floor price on 19th March 2020 to stabilize market amid the downtrend triggered by COVID-19. It was eventually withdrawn on 20th June 2021 during a market uptrend. During March-June 2022, the regulator curtailed lower circuit breaker limit in an effort to steady the market volatility. Eventually, the floor price has been reimposed to stabilize the sentiment of the investors who might trigger panic sell amid continuous downtrend of the market. This measure will be temporary like the previous time.

  • The floor price to be adjusted or diluted for stock dividend and right shares. The price of a stock. For a newly listed stock, the floor price will be the close price of the first trading session.    

A brief history of the floor price imposition and circuit breaker change is below: