FE Report
The securities regulator has temporarily suspended the 15-minute pre-opening session on the bourses to contain misuse of the opportunity.
The Bangladesh Securities and Exchange Commission (BSEC) suspended the session on Thursday.
"Pre-opening session of the Dhaka Stock Exchange and the session of opening auction call and opening price publication of Chittagong Stock Exchange will be suspended temporarily until further instruction," said a BSEC statement issued on the day.
The new directive will be effective from today (Sunday). However, the 10-minute post-closing session will continue.
In October 2020, the securities regulator introduced the pre-opening session (15 minutes) and post-closing (10 minutes) on both stock exchanges which takes place during pre-trading and post-closing.
There are allegations that several brokerage firms placed unrealistic buy-sell orders using the pre-opening session facility.
Panic is created in the market by the buy-sell order of a large amount of shares with the highest price of the circuit breaker.
The BSEC officials said some investors placed large sale orders during pre-opening session and panic was spread in the market following the execution of those sale orders.
They said the misuse of pre-opening session came to the notice of the securities regulator and the commission also warned several investors and brokerage firms about the incidents.
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