The Bangladesh Securities and Exchange commission on Wednesday again restricted share price fall at maximum 3 per cent for all companies but those which are still under floor price restriction.
The BSEC issued a directive in this regard on Wednesday, which will come into effect from today.
Share price of no company can fall below 3 per cent of the closing price on Wednesday鈥檚 session, while it can rise by a range of 3.75 per cent to 10 per cent set in the previously issued rules, according to the latest directive.
The directive also said that the upper limit would remain unchanged adding that the directive was for a short period of time.
The regulatory commission made the decision after a meeting with the stakeholders on Monday following the continuous downward trend on the market since the withdrawal of the floor price restriction in late January.
On July 28, 2022, the BSEC imposed floor prices on all listed companies to prevent excessive falls in stock prices amid economic concerns in the country.
The regulatory commission lifted floor price restrictions on 320 listed companies after 18 months on January 18 and kept six companies under the floor price restriction which are still in place.
The BSEC was compelled to lift the restriction after fierce criticisms as the restriction was allegedly against the principal of capital market. The market had become stagnant as more than two-thirds of the companies had hit floor price restriction.
Since the withdrawal of floor price restriction on January 18, DSEX, the key index of the Dhaka Stock Exchange, lost a total of 757.78 points. The key index was at 6,336.75 points on January 18 which came down to 5,578.97 points on Wednesday.
