Floor price for stocks revoked

In the third phase, the Bangladesh Securities and Exchange Commission (BSEC), has completely lifted the floor price (the minimum limit for falling prices) for stocks.

The regulator asked the stock exchanges to make the decision effective immediately, according to a directive issued on Thursday.

Now the normal circuit breaker on the rise and fall of prices for all stocks returned the market.

The BSEC removed the floor price for 30 listed firms in the second phase on June 3 and 66 companies on April 7.

According to the normal circuit breaker, stocks or units valued within Tk 200 can increase or decrease by a maximum of 10 percent in one day.

In addition, circuit breakers of securities valued between Tk 200 and Tk 500 can increase and decrease by 8.75 percent, Tk 500 to Tk 1,000 by 7.70 percent, Tk 1,000 to Tk 2,000 by 6.25 percent, Tk 2,000 to Tk 5,000 by 5 percent, and Tk 5,000 by 3.75 percent.

To prevent the stock market from freefall, the regulator set the floor prices for the firms on March 19 last year.