PRICE LIMIT
Price Limit means a price control mechanism used to minimize the excessive volatility in the market. Since unusual and abnormal price fluctuation of the securities may severely affect investor's interest CSE, as an additional measure of safety, imposes price limit on the securities trading of ‘A', ‘B' ‘G', ‘N' & ‘Z' category companies as per the following guidelines. A Committee named “Share Price Movement Regulating Committee” comprised of CSE Secretariat is responsible to regulate the price limit in the market.
GUIDELINES
As per BSEC's Order No: SEC/CMRRCD/2001-07/168 dated 13 May 2015 , the following standard upward and downward price limits are applicable for ‘A', ‘B' ‘G', ‘N' & ‘Z' category companies for each market days:
SL No. | Previous day's per share market price | Limits |
01. | Upto Tk. 200 | 10% (Ten Percent) |
02. | Tk.201 to Tk.500 | 8.75% (Eight Point Seven Five Percent) |
03. | Tk.501 to Tk. 1000 | 7.5% (Seven Point Five Percent) |
04. | Tk.1001 to Tk. 2000 | 6.25% (Six Point Two Five Percent) |
05. | Tk.2001 to Tk.5000 | 5% (Five Percent) |
06. | Tk.5001 and above | 3.75% (Three Point Seven Five Percent) |
However, the above price limit will not be applicable in the following case:
- Free trade is also allowed on the subsequent trading day of receiving price sensitive information like rights issue, bonus issue and dividend from the listed company. After the day, the price limit will be applicable as usually.
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