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Stock exchanges have reset the lower price limit for the securities to be traded on block board to enhance turnover value without affecting the broad index.
As a result, the prices of listed securities in block transactions can go below 10 per cent of the floor prices recently set to contain abnormal market fall.
Trading on the main board will be conducted as per existing floor price, said officials of the stock exchanges.
Sunday’s block trading was conducted in line with the new price limit following an advice delivered by the securities regulator.
“Stock exchanges may allow block market transaction by the traders other than existing directors of the concerned issuer companies without floor price based on the existing circuit breaker facilities…,” according to a news posted on DSE website on Sunday.
Asked, a DSE official said the lower price limit has been introduced to boost the turnover.
Only the turnover value of the block board is included in the market turnover posted by the stock exchanges.
(FE)
