BSEC Lifts Floor Price on Beximco, Islami Bank

Beximco, Islami Bank

The Bangladesh Securities and Exchange Commission (BSEC) has withdrawn floor price restrictions on the shares of Beximco Limited and Islami Bank Bangladesh PLC, clearing the way for unrestricted trading of the two stocks from Tuesday.

The decision was taken at a special meeting of the securities regulator on Sunday, with a formal circular issued afterward.

As a result, shares of both companies will now trade without any minimum price limit, marking the complete removal of floor price restrictions from the stock market.

A BSEC spokesperson confirmed that trading in the shares will resume under normal market conditions from June 9.

Before the latest decision, Beximco shares had a floor price of Tk110.10, while Islami Bank shares were fixed at Tk32.60.

The securities regulator introduced floor prices in phases—first in March 2020 during the Covid-19 pandemic and later in July 2022 amid global economic uncertainty—to prevent sharp market declines.

Although the mechanism helped contain volatility, it also restricted normal price movement for many stocks, reducing trading activity, market liquidity and price discovery.

The regulator began gradually lifting the restrictions from January 2024. By August that year, only Beximco Limited and Islami Bank Bangladesh remained under the floor price system.

Market analysts view the latest move as part of broader efforts to restore normal market operations, improve liquidity and strengthen investor confidence through unrestricted price discovery in the capital market.