Chairman of the Bangladesh Securities and Exchange Commission (BSEC), Professor Shibli Rubayat-Ul-Islam, has called upon investors to remain calm following the recent decision to implement a floor price in the stock market. The floor price was reinstated last Thursday (January 18) as part of efforts to stabilize the securities market. Addressing concerns among investors, the BSEC Chairman emphasized the need for the capital market to maintain stability and facilitate further development.
Professor Shibli Rubayat-Ul-Islam told Orthosongbad that the imposition of the floor price on the stock exchange had been previously employed to uphold the trajectory of the stock market. The recent decision aligns with the ongoing efforts to enhance and diversify the development of the share market. He urged investors not to be alarmed by the decision, emphasizing its temporary nature and the potential positive impact on market dynamics.
Furthermore, the Chairman highlighted the importance of foreign investors’ contributions to the stock exchange, indicating a growing interest from foreign entities in investing in the Bangladeshi stock market. He expressed the expectation that these foreign investments would contribute to making the market more vibrant. Professor Shibli Rubayat-Ul-Islam assured investors that the regulatory authorities are focused on maintaining a forward-looking market with increased global participation.
BSEC Chairman, Professor Shibli Rubayat-Ul-Islam, has reassured investors and called for confidence in the country’s stock market, emphasizing the collective commitment of organizations, including Bangladesh Bank and the government, to work together for the development of the capital market. Following the recent decision to implement a floor price, aimed at stabilizing the stock market, Professor Shibli Rubayat-Ul-Islam urged general investors not to be unduly alarmed and to keep an eye on the broader development of the Bangladesh Securities and Exchange Commission (BSEC).
On a related note, the top executives of leading brokerages in the stock market, organized under the banner of the CEO Forum, are set to convene tomorrow (January 21). The meeting, scheduled for 9 a.m., will discuss recent market conditions, with a particular focus on the imposition of the floor price from the perspective of various companies’ shares. The President of the CEO Forum, Md. Sayadur Rahman, confirmed that the discussion would address recent market dynamics, especially the impact of the floor price on a significant number of company shares.
Speaking on the matter, Professor Shibli Rubayat-Ul-Islam stated that despite the floor price imposition, there is no reason for undue concern. The overall political stability in the country has improved, remittance flows have returned to a positive trajectory, and the national economy is gradually recovering from the effects of the pandemic. He mentioned that the prices of shares of many companies reflect a certain level of economic stability.
The Chairman reassured investors that the imposition of the floor price is a temporary measure aimed at preventing panic selling and stabilizing the market. He urged investors to focus on the broader economic development and not be unduly affected by the short-term adjustments.
Furthermore, Professor Shibli Rubayat-Ul-Islam highlighted the collective efforts of the Bangladesh Bank, the government, and other regulatory bodies to work towards the development of the capital market. He expressed hope that foreign investments would contribute to making the market more dynamic and vibrant.
In a separate meeting with the Governor of Bangladesh Bank, Abdul Rouf Talukder, and the Chairman of the Bangladesh Securities and Exchange Commission (BSEC), Professor Shibli Rubayat-Ul-Islam, discussions were held on various issues related to the country’s stock market and the broader economy. The participants emphasized the need for coordinated efforts to facilitate the rapid development of the stock market. Topics such as increasing the liquidity of listed banks through the stock market and enhancing the contribution of bank accounts to the stock market were also discussed.
The recent decision to impose a floor price on shares of 35 companies while exempting others from the directive was made to address continuous declines in share prices. The regulatory authorities are keen on ensuring market stability and preventing further erosion of investor confidence.
Although floor price measures have been implemented in the stock market, they will remain effective for 35 companies. The companies include Anwar Galvanizing, Baraka Power, Beximco, BATBC, BSCCL, BSRM Limited, BSRM Steel, Confidence Cement, DBH, Doreen Power, Envoy Textile, Grameenphone, HR Textile, IDLC, Index Agro, Islami Bank, KDS Limited, KPCL, Kattali Textile, Malek Spinning, Meghna Petroleum, National Housing Finance, National Polymer, Orion Pharma, Padma Oil, Renata, Robi, Saiham Cotton, Shasha Denims, Sonali Paper, Sonar Bangla Insurance, Shinepukur Ceramics, Shahjibazar Power, Summit Power, and United Power.
