Floor price imposed to protect small investors: BSEC chairman

Bangladesh Securities and Exchange Commission (BSEC) Chairman Professor Shibli Rubaiyat Ul Islam has said the floor price system has been imposed in the stock market to protect small investors.

He said this at a seminar on the problems and prospects of the capital market of Bangladesh at the Economic Reporters Forum (ERF) auditorium on Monday.

BSEC Chairman said, “Eighty percent investors of our stock market are small and 20 percent are institutional investors. Otherwise, there would be no need for a floor price.”

He revealed that the floor price has been given to protect small investors despite his unwillingness. “It is not something permanent. The floor price will be lifted once the global crisis caused by the Ukraine-Russia war is over.”

Regarding investment education, he said that it is very important for both investors and the market. That is why discussions will be held with the education ministry on how to include such education in the school curriculum.

In the seminar, DSE Chairman Eunusur Rahman said that transactions and indices in the capital market have increased.

Last year the market capitalisation was Tk 5,42,000 crore, which has grown to about 7,50,000 crore, he informed. The current commission is very attentive to governance and it has to be taken further forward.

Chairman of Chittagong Stock Exchange (CSE) Asif Ibrahim, President of Bangladesh Association of Publicly Listed Companies (BAPLC) Azam J Chowdhury and Vice President of Bangladesh Merchant Bankers Association (BMBA) Md. Moniruzzaman also attended the seminar chaired by ERF President Sharmin Rinvi.

ERF member Mofazzal Haque presented the keynote at the seminar moderated by ERF General Secretary SM Rashidul Islam.