The Bangladesh Securities and Exchange Commission (BSEC) announced on Monday the removal of floor prices for 23 additional stocks in a move aimed at stabilising the downward trend in the market over the last two days.

An official order, signed by BSEC Chairman Prof Shibli Rubayat-Ul-Islam, said, “Whereas, the commission has decided that, in the interest of investors and the securities market, and for the development of the securities market, certain further directions shall be issued for regulating the share price movement in stock exchange trading.”
This decision follows the BSEC’s recent decision to eliminate minimum fixed prices or floor price on shares in the stock market, excluding 35 companies, after one and a half years of the imposition of the restriction.

The DSEX, the main index of the Dhaka Stock Exchange, experienced a downtrend on Sunday immediately after the removal of floor prices.
In response to the negative impact observed a day after scrapping the floor prices, the securities regulator lifted the regulatory cap on an additional 23 shares, following a decision made during a regulatory meeting on Monday.  Mohammad Rezaul Karim, executive director of the BSEC, explained, “There were concerns about speculation in the market after lifting the floor price cap for most stocks. The market bounced back on Monday after the regulatory decision of the commission. The Commission lifted the floor price for more shares to secure the investment.”

Effective from Tuesday, the following stocks will be available for regular trading without floor price restrictions: Baraka Power, Bangladesh Submarine Cable Company, BSRM Steels, Confidence Cement, DBH Finance, Doreen Power, Envoy Textile, HR Textile, IDLC Finance, Index Agro, KDS Accessories, Kattali Textile, Malek Spinning, National Housing Finance, National Polymer, Padma Oil, Saiham Cotton, Shasha Denim, Sonali Paper, Sonar Bangla Insurance, Shinepukur Ceramics, Summit Power, and United Power.

However, floor price restrictions will remain in place for only 12 stocks until further notice.
These companies are Anwar Galvanising, British American Tobacco Company Bangladesh, Beximco Limited, BSRM Limited, Grameenphone, Islami Bank, Khulna Power, Meghna Petroleum, Orion Pharma, Renata, Robi Axiata, and Shahjibazar Power Company.