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The securities regulator has lifted the floor prices of 66 listed securities to ease the transactions of their shares or units.
The decision was taken on Wednesday at a meeting held at office of the Bangladesh Securities and Exchange Commission (BSEC).
At the meeting, the securities regulator for the first time approved the proposal of a green bond worth Tk 1.0 billion.
“The transactions of the shares or units of 66 securities significantly dropped in recent months as their lower prices have stuck to respective floor prices. Their floor prices have been lifted considering the interest of investors,” said a BSEC official.
The floor price is the lowest price of the shares of a listed security fixed taking into account the average of the closing prices of immediate preceding five trading days as of March 19, 2020.
Then the floor price was introduced to contain the free fall of the market amid the outbreak of COVID-19.
The BSEC official said the market price of a listed security can’t go down below its floor price.
“Investors are not showing interest to take part in transactions of those securities with an apprehension of further price erosion if the floor price is lifted. That’s why, their transactions have almost remained stuck,” the BSEC official said.
The securities whose floor prices have been lifted include Peoples Leasing & Financial Services, R. N. Spinning Mills, IFIL Islamic Mutual Fund-1, Zaheen Spinning, Ring Shine Textiles and Olympic Accessories.
At Wednesday’s meeting, the securities regulator approved the first Green Zero Coupon Bond to be issued by Sajida Foundation.
The tenure of the bond will be two years and its characteristics are unsecured, non-convertible and fully redeemable.
The fund which will be raised through the green bond will be used for the development of environment along with accelerating the micro credit activities through existing and new projects.
The units of the green bond will allocated to financial institutions, insurers, corporate entities and high net worth individuals through private placement.
The offer price of the bond is Tk 1.0 million per unit.
Sena Kalyan Insurance Company and Standard Chartered Bank are working as trustee and mandated lead arranger of the bond respectively.
(FE)
