Lift floor price on Beximco, IBL

The Dhaka Stock Exchange Brokers Association of Bangladesh (DBA) has urged the Bangladesh Securities and Exchange Commission (BSEC) to withdraw the floor price on Beximco Ltd and Islami Bank Limited (IBL) and allow normal trading of the stocks.

In a letter sent to the capital market regulator on Sunday, the DBA requested the immediate withdrawal of the floor price for the two companies.

The letter said that due to the floor price imposed by the commission, Beximco Ltd has remained largely inactive in the stock market for a prolonged period. Similarly, other floor-priced stocks, including Islami Bank Bangladesh PLC, have hit the floor price, restricting trading for sellers.

It added that continued trading restrictions are pushing many shareholders into negative equity, particularly those who have taken margin loans from market intermediaries.

The association also said the imposition of floor prices on these stocks has created a negative perception of the country’s capital market among international investors.

The floor price mechanism was introduced in July 2022 to prevent excessive market declines. The regulator lifted floor prices in phases, with the final round in August 2024, leaving only Beximco and Islami Bank under the restriction.

In August 2024, the BSEC removed the floor price from four stocks – Shahjibazar Power, Khulna Power, Meghna Petroleum, and BSRM Limited.