Dhaka, Bangladesh (BBN)- The Securities and Exchange Commission (SEC) on Wednesday imposed a circuit breaker on both bourses for the first time in an effort to rein in volatile trading in the country’s two shares markets.
Trading at the Dhaka Stock Exchange (DSE) will come to an automatic halt for the whole session if the DGEN – the main market barometer — gains or loses 225 points, according to the SEC’s latest decision.
“We’ve taken the decision at the meeting of its market monitoring committee,” its executive director Anwarul Kabir Bhuiyan said at a press briefing in Dhaka, adding that it will remain in action until further order.
The SEC said trading at the smaller Chittagong Stock Exchange (CSE) will also be suspended automatically for the day when DSE stops its trading.
Officials said the move aimed at “curbing volatility and the tackling abnormal ups and downs” in the plunging market and bring confidence back among millions of investors.
BBN/AD/SSR-20Jan11-1:34 am (BST)
