2024-04-24 20:47:19
Stock market prices continue to decline. In this situation, the regulatory body Bangladesh Securities and Exchange Commission (BSEC) has set a new limit or circuit breaker to reduce the share price of companies listed in the capital market. According to the new guidelines, the share price of the companies can fall by a maximum of 3 percent in a day. However, the maximum rate will remain as per previous instructions.
This directive was issued on Wednesday (April 24) signed by BSEC Chairman Professor Shibli Rubaiyat-ul-Islam.
This new BSEC directive will be effective from tomorrow (April 25). However, in this case, the 6 companies in the floor price will be out of the scope of this directive. However, while the new limit on price reduction has been fixed, the previous limit on price increase remains in place. In the light of the previous day’s market price of the shares, the price can increase from a minimum of 3.75 percent to a maximum of 10 percent.
In the interests of investors and for the development of the securities market, the Bangladesh Securities and Exchange Commission has issued guidelines to regulate the movement of share prices of securities listed in stock exchange trading.
On June 17, 2021, BSEC lifted the floor price and imposed a new circuit breaker. According to that directive, the circuit breaker for companies whose share price is within Tk 200 is 10 percent. That is, the price of the discussed shares could increase by a maximum of 10 percent and decrease by a minimum of 10 percent daily. In addition, the circuit breaker for shares whose price is between Tk 200 and Tk 500 is 8.75 percent, if the share price is between Tk 500 and Tk 1000, the circuit breaker is 7.50 percent, and if the share price is between Tk 1 thousand and Tk 2 thousand, the circuit breaker is 6.25 percent. Percentage, if the share price is between Tk 2 thousand to Tk 5 thousand then the circuit breaker is 5 percent and if the share price is more than Tk 5 thousand the circuit breaker is fixed at 3.75 percent.