Stocks
BSEC Restores Normal Circuit Breaker Rules in Stock Market
The Bangladesh Securities and Exchange Commission (BSEC) has reinstated the normal circuit breaker rules for the country’s stock market, meaning that the same rate will now apply to both price increases and decreases. These changes will take effect from Thursday, allowing stock prices to fluctuate between 3.75% and 10% in a single day, depending on the share price.
This decision was made during the 916th emergency commission meeting of BSEC on Wednesday, August 28, chaired by the new BSEC Chairman, Khandaker Rashid Maksud.
Previously, under the leadership of Professor Shibli Rubayat-Ul-Islam, the commission had adjusted the circuit breaker rules to curb price drops, limiting the maximum price decrease to 3% per day, while leaving the price increase rules unchanged.
The Wednesday meeting also reinstated the June 17, 2021, decision regarding circuit breakers for companies whose floor prices had been lifted. This allows share prices to increase or decrease by a specific percentage based on the previous day’s closing price.
According to the new rules, a stock priced below BDT 200 can fluctuate up to 10% in a day. Stocks priced between BDT 200 and BDT 500 can move by 8.75%, those between BDT 500 and BDT 1,000 by 7.5%, stocks between BDT 1,000 and BDT 2,000 by 6.25%, those between BDT 2,000 and BDT 5,000 by 5%, and stocks priced above BDT 5,000 can move by up to 3.75%.
In the same meeting, the proposal to sign a memorandum of understanding (MoU) with the National Telecommunication Monitoring Center (NTMC) was withdrawn, along with the related letter sent by BSEC to the Financial Institutions Division. Additionally, the commission decided to terminate cricketer Shakib Al Hasan’s role as the goodwill ambassador for BSEC’s nationwide investment education program.
Furthermore, BSEC resolved to take immediate legal action against listed companies that failed to distribute declared dividends within the stipulated time frame.
The commission also approved a draft MoU with Kazakhstan, which is awaiting ministry approval. This bilateral agreement aims to enhance mutual information exchange and skill development, which BSEC believes will facilitate various initiatives for the development of both countries’ stock markets. The MoU specifies that each party’s domestic laws will prevail in case of any disputes, ensuring smooth compliance with the agreement’s terms.
One of the Listed companies, National Polymer Limited has recommended 10.50% Cash Dividend for the year ended June 30, 2024.
It has reported Consolidated EPS of Tk 2.27 paisa, and Consolidated NAV per share of Tk 30.63 for the year ended March 31, 2024.
The Annual General Meeting (AGM) of the company will be held on December 18, through the digital platform. The record date for this has been fixed at October 22.
The Company also discloses its financial reports for the second quarter, (April – June 24).
As per the company’s consolidated life revenue account for April to June 2024, the excess of total income over total expenses, including claims (surplus), stood at Tk 1,394.24 million. This marks a significant increase from the surplus of Tk 823.68 million during the same period in 2023.
For the first half of 2024, from January to June, the company reported a surplus of Tk 2,177.57 million, compared to Tk 1,290.39 million in the corresponding period of the previous year.
Additionally, the Life Insurance Fund balance as of June 30, 2024, reached Tk 55,188.62 million, showing a net increase of Tk 5,892.25 million from Tk 49,296.37 million on June 30, 2023.
One of the Listed companies, Beacon Pharmaceuticals PLC has recommended 20% Cash dividend and 10% Cash Dividend to Sponsor Shareholder and Directors for the year ended June 30, 2024.
It has reported EPS of Tk 2.26 paisa, and NAV per share of Tk. 26.37 for the year ended June 30, 2024.
The Annual General Meeting (AGM) of the company will be held on December 23, through the digital platform. The record date for this has been fixed at October 27.
The Bangladesh Securities and Exchange Commission (BSEC) has removed three audit firms from its panel for their failure to secure enlistment with the Financial Reporting Council (FRC), according to a notice issued today.
The firms—A Hoque & Company, FAMES & R, and SK Barua & Company Chartered Accountants—were delisted following the FRC’s request. In December last year, the FRC published a list of enlisted audit firms and subsequently, in February, requested the BSEC to remove any firms that were not included on that list.
BSEC regulations mandate that financial statements signed by auditors outside its approved panel will not be accepted. With the removal of these three firms, the total number of audit firms on the BSEC panel has been reduced from 48 to 45.
Sources from the FRC revealed that 15-20 audit firms failed to secure enlistment last year, and approximately 45 chartered accountants are currently under restrictions imposed by the Institute of Chartered Accountants.
Although the delisted firms can no longer audit issuer companies or listed securities, they are allowed to complete audit and assurance services that were initiated before their removal, the BSEC clarified.
