The Chairman of the Bangladesh Securities and Exchange Commission (BSEC), Professor Shibli Rubayat-Ul-Islam, has stated that there is currently no consideration of raising the floor price on each share.
The Chairman clarified this information on Saturday (December 9). He affirmed that the floor price is set with the security of investors in mind. Recent reports speculating an increase in the minimum share price are considered baseless at the moment, and the Commission has not made any decision regarding raising the floor price.
Professor Shibli Rubayat-Ul-Islam further stated that transactions in the stock market are expected to increase after the upcoming twelfth National Parliament elections. With a more active economy, decisions regarding the floor price may be revisited at that time. However, as of now, there has been no decision from the Commission regarding an increase in the floor price.
It is noteworthy that the BSEC has implemented floor prices on shares three times in the last four years to safeguard investors and prevent market crashes. Although the floor price was first introduced in March 2020, it was enforced again in July 2021. The initiative proved effective as, on the very first day of the floor price’s enforcement, the Dhaka Stock Exchange (DSE) witnessed a significant rise in the main index, DSE X, gaining 153 points. Additionally, the market capitalization of the DSE increased by Tk 21 billion during the first week of the floor price implementation on July 31.
