The Bangladesh Securities and Exchange Commission (BSEC) on Sunday said they had to impose floor prices of shares to protect general investors, adding that such a move was not initially desirable in the context of global market regulation practices.
"We were compelled to do it to protect general investors who have major shares in the market and lost hard-earned money," said Prof Shibli Rubayat-Ul Islam, chairman of the securities regulator.
He made the remark in response to a question at a press meet held at the office of the Capital Market Journalists' Forum (CMJF) in the capital.
Islam also said the BSEC would not have imposed the floor prices if 80% of the investors were institutional like America and Europe.
"I also represent the International Organization of Securities Commissions (IOSCO) and from this position, it's not right to impose floor prices," he added.
The securities regulator imposed floor prices further on Thursday to prevent the ongoing free-fall of the share prices.
The floor prices for all listed securities will be their respective averages of the closing prices of five sessions executed since Sunday to Thursday last, and the market prices of the securities will not be allowed to go down below the respective floor prices.
In response to a question regarding some investors having huge followers, the BSEC chairman said the regulator does not advise anyone to conduct buy-sell.
"I have said at a conference as to why people are running after a rogue person despite being informed about his character. That person will incur loss if people do not run after him."
Speaking on listing more state-owned enterprises (SoEs), he said that a gas and another power generation company have made significant progress to float shares in the capital market.
He said the BSEC has been inspiring the SoEs for long to float shares and the government is very much positive in this regard.
"Many good companies are waiting to go public by submitting good financials. Some IPOs (initial public offering) are likely to be submitted on completion of financial statements for the year ended in June last," the chairman said.
He said the decision of calculating the banks' exposure limit to stock market-based cost prices instead of market prices is under process.
"A move is underway to calculate the exposure limit based on the cost prices without changing laws."
Asked about the outcome from restricting boards of many companies, he said the investors were showing interest to purchase two companies after restructuring their boards.
He also said that none of the companies having their boards restructured are going into bad condition.
"We will also sit with the governor of the central bank in August next to improve corporate governance of weak non-banking financial institutions."
