After some investors started to sell shares to realize capital gains on the rumour that the floor price would be revoked; the Bangladesh Securities and Exchange Commission (BSEC) Chairman, Professor Shibli Rubayat-Ul Islam, stated that no decision had been made on revoking the floor price that has been established to prevent the collapse of the capital market.
“There have been rumours about cancelling the floor price, but the commission has not decided yet. A group is trying to profit by spreading rumours, so I advise investors to stay alert and not pay heed to rumours,” said Shibli Rubayat-Ul Islam,
The BSEC established a floor price in July to stop share values from falling.
Earlier when the DSEX, the broad-based index of the Dhaka Stock Exchange, was in free fall from its 4,000 level due to Covid-19 worries, the commission enforced a comparable floor pricing on March 19, 2020.
Further, the regulator permitted post-record date revisions to reduce the floor and progressively raise the floor price for specific scrips in place of imposing a narrow bottom circuit breaker.
The floor pricing was finally totally terminated in June 2021 since the market had already soared, thanks to a liquid money market which was stronger than the anticipated economic output during the pandemic.