Withdrawal of Islami Bank and Beximco floor price

Bangladesh Securities and Exchange Commission (BSEC) has withdrawn the floor price (minimum limit of share price) of shares of Islami Bank and Beximco listed on the stock market. The Commission has decided to bring back the normal speed of transactions in the market. This decision will be effective from tomorrow Tuesday.

Related sources informed that this decision was taken in the special commission meeting of BSEC on Monday (June 8).

Floor price is the lowest limit of share price. The share price cannot fall below this. After the start of the corona epidemic, the commission imposed a floor price so that the share price could not fall abnormally. BSEC took action on March 19, 2020 to prevent the abnormal fall of shares in the market during the Corona period. Later, floor prices were withdrawn in shares of various companies. The floor price imposed on the shares of Islami Bank and Beximco was not withdrawn at that time, the decision to withdraw was taken at Monday's special commission meeting.

BSEC executive director and spokesperson Abul Kalam said that the commission has withdrawn the floor price of shares of Islami Bank and Beximco. An order in this regard will be issued today. He said that shares of Islami Bank and Beximco will be traded without floor price from Tuesday (June 8).

Today Beximco shares had a floor price of Tk 110.10 and Islami Bank shares had a floor price of Tk 32.60.

The BSEC spokesperson clarified that imposing a floor price (minimum price limit) in the secondary market is not an international or standard rule. The price and trading of any securities should be based entirely on the demand and supply of investors. Artificially maintaining a floor price on a particular share is against the normal rules of this market. Therefore, the commission has given floor price to follow the global standard practice.