BSEC has set a new limit for share price reduction
2024 Apr 24 19:15:09
The Report Correspondent:The regulatory body Bangladesh Securities and Exchange Commission (BSEC) intervened in the market again in the face of continuous price decline. Now a new limit has been set for reduction in share price of all listed companies. However, this limit will not apply to companies under floor price. The regulatory agency has taken this measure in the interests of investors.
BSEC has issued a directive in this regard on Wednesday (April 24). This directive will be effective from tomorrow Thursday (April 25).
This information is known from BSEC sources. According to the guidelines, a company’s share price can fall by a maximum of 3 percent in a day. No one can sell or buy shares at a lower price. Earlier, the price could have decreased from a minimum of 3.75 percent to a maximum of 10 percent based on the market value of the shares.
However, even if the new limit for price reduction is fixed, the previous limit for price increase remains in place. In the light of the previous day’s market price of the share, the next day price can increase from a minimum of 3.75 percent to a maximum of 10 percent.
In the existing circuit breaker system, price limits are fixed based on the share price. The limit is applied on the next day in light of the previous day’s closing price of the shares of any company. If the share price of a company is within Tk 200, the share price may increase or decrease by up to 10 percent the next day. 8.75 percent from Tk 200 to Tk 500, 7.50 percent from Tk 500 to Tk 1000, 6.25 percent from Tk 1000 to Tk 2000, 5 percent from Tk 2000 to Tk 5000 and If it is more than 5000 rupees, 3.75 percent may increase or decrease.
The lower limit of the circuit breaker is fixed today while the upper limit of the price increase is maintained.
