FTSE Russell downgrades Bangladesh capital market from 'restricted' to 'not met'

FTSE Russell, a subsidiary of London Stock Exchange Group (LSEG), has downgraded the rating for the Bangladesh capital market from "Restricted" to "Not Met" in efficient trading mechanism criterion.

FTSE Russell is a leading global provider of index and benchmark solutions, spanning diverse asset classes and investment objectives.

It downgraded the country's capital market rating as the Bangladesh Securities and Exchange Commission (BSEC) continued the share price movement restriction, which is known as floor price.

FTSE Russel announced the new rating in a report published on 28 September.

Earlier, on 28 February 2023, FTSE Russell announced that index changes for Bangladesh constituents of FTSE Russell equity indices would be frozen due to the continued imposition of a "floor price" on the Dhaka Stock Exchange that impacts the ability of international institutional investors to replicate benchmark changes.

A senior official of a brokerage firm said foreign institutional investors are taking investment decisions following the FTSE Russell Index. But the FTSE removed the Bangladesh capital market from its index, which discouraged the foreign investors to invest here.