FE Today Logo

Securities to be traded up to 10pc below floor on block board

FE Report | November 16, 2022 00:00:00

The securities regulator has allowed price corrections up to 10 per cent lower than the existing floor prices of listed securities only for transactions to be executed on block board.

As per the existing system, there is no scope of transactions below the floor price imposed to contain the free fall of the capital market.

The Tuesday's order by the Bangladesh Securities and Exchange Commission (BSEC) paved the way for transactions with stock prices down by 10 per cent from floor prices only on the block board where arranged trades are executed.

A senior official of a merchant bank said a huge volume of transactions was pending in the block market due to the price restriction.

BSEC Executive Director Mohammad Rezaul Karim said the regulatory decision will facilitate transactions in the block market. "It will also boost transactions in the capital market."

If the floor price of a listed security is Tk 100, a 10 per cent price correction means the price can come down to Tk 90.

The existing limit of the circuit breaker will remain effective at the upper end.

Acting managing director of the DSE, M. Shaifur Rahman Mazumdar said a letter had already been issued for the execution of the order.

Transactions in the main board will be executed in line with the existing system and no transactions will be allowed below the floor prices.

[email protected]

Share if you like