The Financial Express

BSEC to consider 'adjusted' share price

| Updated: February 18, 2021 11:02:55

BSEC to consider 'adjusted' share price

The securities regulator has decided to consider the 'adjusted' share price as the revised floor price of any listed securities.

The Bangladesh Securities and Exchange Commission (BSEC) took the decision on Monday at a meeting held at the BSEC office.

It took the decision following the confusions regarding the floor prices of some listed companies including British American Tobacco Bangladesh Limited (BATBC) which declared dividend.

"The share prices adjusted after the record date for the rights or bonus issues will be considered as the revised floor price. The BSEC has taken the decision taking into account the dilution effect of the listed securities," the BSEC officials said.

Both the bourses set floor prices of listed securities on March 19 to contain abnormal price fall following a directive issued by the securities regulator.

As per the directive, the opening price of any listed security shall be set at the average of the closing price of immediate preceding five trading days of March 19.

And this average price calculated for each security shall be considered as floor price and the lowest limit of the circuit breaker.

Before setting the floor prices, the country's both the bourses witnessed free fall in broad index following the outbreak of Covid-19.

At Monday's meeting, the securities regulator fined the directors, other than independent ones, and the managing director of Monno Ceramic Industries Tk 10 million each for breaching the securities rules regarding preparing annual report.

The securities regulator has also fined Monno Welfare Foundation Tk 100 million for breaching the securities rules regarding unlawful transactions of the listed securities.

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