BSEC lifts floor price for 4 more cos

The Bangladesh Securities and Exchange Commission (BSEC) has removed the floor price for the shares of four more companies.

The companies are BSRM Ltd, Khulna Power, Meghna Petroleum, and Shahjibazar Power.

Now, the floor price remains only for two companies-Beximco Ltd and Islami Bank Bangladesh.

The stock market regulator took the decision at an emergency meeting with its Chairman Khondoker Rashed Maqsood in the chair at its office in the city on Wednesday, said a press release last night, BSS reports.

At the meeting, the BSEC also decided that all companies’ share prices may increase or decrease by up to 10 per cent a day, which was the lowest limit of 3 per cent instant.

BSEC has also decided to cancel the Memorandum of Understanding (MoU) with the National Telecommunication Monitoring Centre (NTMC) and withdraw the letter the commission sent to the Financial Institutions Division.

The stock market regulator also cancelled the appointment of national cricketer Shakib Al Hasan as its goodwill ambassador for the nationwide financial literacy programme.

Moreover, the meeting resolved to immediately take legal action against those public issue companies that have failed to pay the declared dividends within the stipulated time as per the rules.

On January 18 this year, after the session’s closing bell, BSEC issued an order rescinding the floor price for all listed companies and mutual funds, except for 35 companies’ shares, complying with a long-standing demand from stakeholders. The floor price for the other companies was removed later as well in phases.

Previously, on July 28, 2022, BSEC imposed floor prices on all securities to prevent shares from falling beyond a certain level amid domestic and global macroeconomic strains.

The share prices of most companies have been stuck at their floor prices for an extended period, pushing investors towards liquidating their holdings and creating a liquidity crisis in the market.