BSEC sets stock floor price again

The Bangladesh Securities and Exchange Commission (BSEC) has again set the floor price of every stock to halt the free fall of the market indices amidst global economic uncertainties that have impacted Bangladesh's economic indicators in the last couple of months. 

The floor price will be the average of the closing prices on July 28 of this year and the preceding four days, reads a notice issued by the stock market regulator yesterday.

The floor price is the lowest price at which a stock can be traded.

In case of stock dividend and right share issuance, the floor price will be the adjustment with the price prevailing on the day preceding the record date, it said.

The record date is the day until which an investor is eligible for the stock dividend and right share in cases where the investor has decided to sell the share.

Earlier on March 19, 2020 the stock market regulator imposed the floor price on all stocks by calculating their average prices from the preceding five days to stop the index from falling amid the pandemic.

The decision was criticised by most analysts and foreign investors so it started to lift the floor price in phases since April of 2021.