Dhaka Stock Exchange (DSE) will introduce new sessions such as pre-opening and post-closing session on November 19 to create the scope of determining justified opening and closing price of the listed securities.
The Bangladesh Securities and Exchange Commission (BSEC) on October 20 last approved the proposal of introducing different sessions namely pre-opening, opening, closing, and post-closing session.
The move came following the practice of foreign countries’ stock exchanges where investors get the scope to purchase or sell securities at the closing price even after closure of the session.
As part of the move, DSE, the country’s premier bourse, on Tuesday held a workshop to shed light on the sessions to be introduced this month.
The representatives of different TREC (trading right entitlement certificate) holders and merchant banks attended the workshop.
Presently, trading in the country’s stock exchanges is conducted from 10:00am to 2.30pm.
As per the regulatory approval, the period of DSE pre-opening session will be from 9.45am to 10:00am and investors will be allowed to place sale or buy orders within this period.
“Ideal opening price will be determined in the pre-opening session. And the price determined by the highest number of investors will be the opening price,” said a release of the DSE.
And the orders placed at the opening price will be executed during the regular period of trading conducted from 10:00am to 2.30pm.
The closing and post-closing sessions will be started after the regular trading session closed at 2.30pm.
The period of these two sessions will be 10 minutes and investors will not be allowed to place new price for listed securities within this period.
Investors will be offered with the scope of purchasing and selling securities at the closing price within that period of 10 minutes till 2.40pm.
