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The securities regulator on Monday finally lifted the floor price for Beximco and Islami Bank, bringing an end to more than four years of trading restrictions on the two listed firms.
The newly formed commission of Bangladesh Securities and Exchange Commission (BSEC) removed the floor price for the two listed companies effective from today (Tuesday), said a BSEC order on Monday.
The decision came after newly appointed BSEC Chairman Masud Khan reiterated his opposition to the floor price mechanism. At his first press briefing on Thursday, BSEC chief said the regulator would not impose floor prices under any circumstances in the future.
He repeated the same stance at an event organised by CFA Society Bangladesh on Sunday. The BSEC chairman also informed a delegation from the Dhaka Stock Exchange (DSE) about the withdrawal of the floor prices during a courtesy meeting on Sunday.
The removal marks the conclusion of a temporary mechanism initially imposed in March 2020 to curb volatility during the Covid-19 pandemic, and later expanded in July 2022 to protect the market from economic shocks, streaming from Russian-Ukraine war.
While designed to prevent free-falls, the floor prices ultimately locked many stocks at their minimum levels, severely squeezing market liquidity and preventing normal price discovery.
The regulator lifted floor prices in phases, with the final round in August 2024, leaving only Beximco and Islami Bank under the restriction.
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