Floor price removed from all shares, but 35 companies

Share market illustration

The Bangladesh Securities and Exchange Commission (BSEC) has lifted the floor price for all shares, except some 35 specific companies.

The capital market regulator issued an office order in this regard on Thursday, saying that the decision came following a government directive. 

According to BSEC sources, the floor price will be applicable to 35 companies as shares of these companies are stuck in the floor price and their rise and fall maintain a large influence on market indices. A decision will be taken later over lifting the floor price of these companies.

The 35 companies are: Anwar Galvanizing, Baraka Power, British American Tobacco Bangladesh, Beximco Ltd, Bangladesh Submarine Cables, BSRM Ltd, BSRM Steel, Confidence Cement, DBH, Doreen Power, Envoy Textile, Grameenphone, HR Textile, IDLC Finance, Index Agro Industries, Islami Bank, KDS Accessories, KPCL, Kattali Textile, Malek Spinning, National Housing Finance, National Polymer, Orion Pharmaceuticals, Padma Oil, Renata Ltd, Robi, Saiham Cotton, Shasha Denim, Sonali Paper, Sonarbangla Insurance, Shinepukur Ceramics, Shahjibazar Power, Summit Power, and United Power.

The floor price was introduced on 28 July, 2022 in an effort to prevent the free fall in the stock market. In the aftermath, the share prices of many listed companies remained stuck at the floor prices. It disrupted share trading for nearly one and a half years and resulted in a stagnation. 

The office order came following the calls from different stakeholders. Earlier, the BSEC had indicated that the floor price could be lifted after the election.