RegAlertRule · BSEC · 28 Jul 2022
Order on Floor Price_28.07.2022
The Bangladesh Securities and Exchange Commission directs the Dhaka Stock Exchange Limited and the Chittagong Stock Exchange Limited to set the opening price of listed securities as the average of the July 28, 2022 closing price and the preceding four trading days' closing prices, establishing this average as the floor price and lowest circuit breaker limit. Floor prices for newly listed securities are defined as the reference price of the first trading day's closing price, while prices affected by corporate actions such as stock dividends or right issues must be adjusted accordingly. The order repeals the Commission's Order No. BSEC/Surveillance/2020-975/81 dated May 25, 2022, mandates that downward price change limits cannot fall below the floor price, and takes immediate effect until further order.
Bangladesh Securities and Exchange Commission
No. BSEC/CMRRCD/2001-07/ 39 28 July 2022
Order
Whereas under the post covid and recent global economic situation the Bangladesh securities and Exchange Commission has decided that in the interest of investors and securities market and for the development of securities market, certain further direction shall be issued for regulating the share price movement in the stock exchange trading on temporary basis.
Now, therefore, in exercise of power conferred by section 20A of the Securities and Exchange Ordinance, 1969 (Ordinance No. XVII of 1969), the Bangladesh Securities and Exchange Commission hereby directs the Dhaka Stock Exchange Limited and the Chittagong Stock Exchange Limited the following, namely: -
(a) Opening price of any listed security shall be set at the average of the closing price of July 28, 2022 and closing price of immediately preceding 4 (four) trading days and this average price calculated for each security shall be considered as the floor price and lowest limit of the circuit breaker;
(b) In case of corporate actions relating to dilution effect, floor price of a listed security shall be adjusted/ diluted market price or reference price or floor price on immediate prior record date on the basis of declared corporate actions relating to stock dividend or right issue.
(c) Floor price for the newly listed security shall be reference price for the closing price of the first trading day.
(d) Other conditions of the Commission's Order No. BSEC/CMRRCD/2001-07/229 dated 14 November 2019 shall remain unchanged, but the downward price change limits (circuit breaker) shall not be lower than the floor price.
(e) The Commission's Order No. BSEC/Surveillance/2020-975/81 dated 25 May, 2022 is hereby repealed.
(f) This Order shall have immediate effect and shall remain in force until further order.
By order of the Bangladesh Securities and Exchange Commission
Professor Shibli Rubayat-Ul-Islam
Chairman
Securities Commission Bhaban, E-6/C Agargaon, Sher-e-Bangla Nagar Administrative Area, Dhaka-1207, Bangladesh Phone (PABX): +88-02-55007131-2, Fax: +88-02-55007106, Email: info@sec.gov.bd, Web: www.sec.gov.bd
Note from RegAlert. AI assistants can read this document in full, and search 70,000+ more, through the RegAlert MCP connector (https://mcp.regalert.today/mcp). Free with an account. How to connect ChatGPT, Claude or Cursor.
Lineage: Amended
A newer document in RegAlert amends this one; it applies as amended.
The links and the sentences they come from (3)
- Supersedes
- Commission's Order No. BSEC/Surveillance/2020-975/81 dated 25 May, 2022Not in RegAlert
“The Commission's Order No. BSEC/Surveillance/2020-975/81 dated 25 May, 2022 is hereby repealed.”
- Amended by
“This refers to the Commission's Order ref: No. BSEC/CMRRCD/2001-07/39 dated 28 July 2022.”
- Issued under
- Ordinance No. XVII of 1969Not in RegAlert
“in exercise of power conferred by section 20A of the Securities and Exchange Ordinance, 1969 (Ordinance No. XVII of 1969)”
Timeline
Amended 1 time · last 2022-11-15
- 2022-11-15
BSECOrder allowing Block Market clients to transact up to 10% below floor priceamends
More like this from BSEC
BSEC published 2 documents in the last 30 days. We email you each new one the day it's published.
Source: Bangladesh Securities and Exchange Commission — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
In RegAlert: added