The Bangladesh Securities and Exchange Commission (BSEC) temporarily suspended the 15-minute pre-opening session on the bourses because of misuse of the opportunity.
“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 Thursday.
The new directive will be effective from Sunday (May 22). However, the 10-minute post-closing session will continue.
In October 2020, the stock market regulator allowed the pre-opening session (15 minutes) and post-closing (10 minutes) on both stock exchanges which takes place before the day’s trading begins and after 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.
Such incidents came to the notice of the securities regulator. Sources said the commission also warned several investors and brokerage firms about the incidents.