The Dhaka Stock Exchange (DSE) has slashed the tick size for shares trading below Tk 1 to just Tk 0.01, with an aim of reviving trading activity in near-dormant stocks.
The new rule on penny stocks, announced on Sunday, will take effect on October 29, 2025.
Tick size refers to the smallest possible price movement between two buy or sell orders for a share.
Previously, all equities on the DSE had a uniform tick size of Tk 0.10. This system became impractical for stocks priced below Tk 1, as the 10 per cent circuit breaker鈥攕et to limit daily price swings鈥攑revented these low-priced shares from moving at all.
For instance, if a share trades at Tk 0.9, the 10 per cent limit allows a maximum movement of Tk 0.09 either way. But since the minimum tick size was Tk聽0.10, such stocks became effectively frozen.
FAS Finance Ltd and People鈥簊 Leasing & Financial Services Ltd, both trading at Tk 0.9, were among the affected companies.
DSE never experienced such situation as no share鈥檚 price fall below Tk 1 previously.
Under the new framework, prices of such penny stocks will now be able to move in smaller increments of Tk 0.01, allowing them to trade more freely.
DSE officials said the adjustment will enhance price discovery and help restore investor interest in these illiquid shares.
Market analysts said that a finer tick size allows for more precise pricing and tighter bid-ask spreads, which could stimulate trading volumes.
While the change does not alter the circuit breaker mechanism itself, it provides a much-needed operational flexibility for low-value shares, which had long remained frozen due to structural limitations in the trading system.
