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proposal to sign a memorandum of understanding (MoU) with the National Telecommunication Monitoring Center (NTMC) was withdrawn, along with the related letter sent by BSEC to the Financial Institutions Division.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.
