Dhaka Stock Exchange’s SME board jumps 5% after easing minimum investment rule
Market participants said the regulatory change could boost liquidity and investor engagement in a segment that has remained subdued since its launch
The small and medium enterprise (SME) board of the Dhaka Stock Exchange (DSE) surged sharply today (4 January), with the SME index jumping more than 5% following a regulatory move aimed at widening investor access to the platform.
Brokers said the rally was largely sentiment-driven, as investors welcomed the Bangladesh Securities and Exchange Commission's (BSEC) decision to reduce the minimum investment requirement for trading on the SME board. Under the revised rule, investors with at least Tk10 lakh in the secondary market are now eligible to buy and sell SME shares, down from the previous Tk30 lakh threshold, which had long been criticised for restricting participation and limiting trading activity.
The DSE SME index (DSMEX) jumped 47 points, or 5.43%, to close at 924, marking one of its strongest single-day gains in recent months. Turnover also climbed sharply, rising 80% to Tk5.84 crore from the previous session. Of the 20 SME-listed companies traded, 18 advanced while only one declined, signalling broad-based buying interest. Several stocks hit their upper circuit limits, including Wonderland Toys, Al-Madina Pharmaceuticals, Krishibid Seed and Mostafa Metal, each gaining 10%, while Bengal Biscuits rose nearly 10%.
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Market participants said the regulatory change could boost liquidity and investor engagement in a segment that has remained subdued since its launch.
The decision to reduce the threshold amount was taken at the commission's 990th meeting on 30 December 2025, and will be implemented through an amendment to a directive issued on 21 September 2022.
