BSEC removes floor price on Beximco and Islami Bank shares

The floor price restrictions on listed companies
Beximco Limited and Islami Bank Bangladesh PLC have been withdrawn, marking a
significant step toward restoring normal trading activity in the stock market.
The decision was taken by the Bangladesh
Securities and Exchange Commission (BSEC) in a special commission meeting today
(8 June). A circular has also been issued in this regard.
The new rule will take effect from tomorrow (9
June), allowing stocks of both companies to trade freely without any minimum
price limit.
Confirming the matter to The Business Standard,
BSEC Executive Director and spokesperson Abu Kalam said trading will resume
without price restrictions from tomorrow.
Until the decision, Beximco's floor price stood
at Tk110.10 per share, while Islami Bank's floor price was Tk32.60 per share.
BSEC introduced floor prices in two phases,
first in March 2020 during the Covid-19 crisis and again in July 2022 amid
global economic pressure.
While the move helped contain market volatility,
it also left many stocks stuck at their minimum prices, sharply reducing
trading activity, liquidity, and normal price discovery.
From January 2024, the regulator began gradually
withdrawing the restrictions, and by August 2024, only Beximco Limited and
Islami Bank remained under the floor price system.
Market analysts see the move as part of a
broader effort to normalise price discovery and improve liquidity in the
capital market, which had remained constrained under long-standing floor price
restrictions.
















