The Bangladesh Securities and Exchange Commission (BSEC) has lifted the floor prices for all the listed companies, floor prices of which were not removed in the earlier two phases, from the next trading session.
As a result, it will be possible to trade the listed companies' shares in the regular circuit breaker.
The stock market regulator issued a circular to this effect on Thursday.
On 7 April this year, the commission allowed 66 companies to trade their shares without the barriers of the floor price system in the first phase.
And in the second phase on 3 June, floor prices were lifted for another 30 companies.
On 19 March last year, the BSEC imposed the floor price to curb abnormal price falls due to the coronavirus pandemic.
The commission has set a new circuit breaker for all listed companies from the next trading day.
As per the circuit breaker, if the share price is up to Tk200, the price of the company can be changed by a maximum of 10%, and if the share price is between Tk200-500, it can be changed by a maximum of 8.75% everyday.
If share price stays between Tk501 and Tk1,000, the circuit breaker will be 7.5%; for a price between Tk1,001 and Tk2,000, the circuit breaker will be 6.25%; for that between Tk2,001 and Tk5,000, it will be 5%; and if the share price is above Tk5,000, the circuit breaker will be 3.75%.
Newly listed companies will follow the same circuit breaker rules from the first trading day.
As per the BSEC directive, the opening price of listed securities would be the average of the closing price of the immediately preceding five trading sessions from 19 March, and this average price calculated for each security was considered the floor price and the lowest limit of the circuit breaker.
Initially, most of the stocks were not getting buyers. But the floor price turned into an almost forgotten issue since mid-2020 as the market strongly bounced back riding on a strong macro economy, low-interest rate, and increased confidence in the market regulator.