Iran Stock Market: SEO Increases Limit Down Price

The Securities and Exchange Organization will increase the limit down price in the share market from April 21, the SEO head said. 
Following a decision by the SEO board of directors, share prices will spread from -3% to +6% a day as of Wednesday, Mohammad Ali Dehqan-Dehnavi was quoted as saying by Securities and Exchange News Agency.
The daily price spread was ±5% during one trading session for years before the stock market regulator decided to increase the limit up price on Feb. 13 and cut the limit down. 
The regulator said that it would temporarily change the price spread to -2% and +6% -- a move ostensibly aimed to avoid further decline in share prices.
In the previous price limit, set in favor of the market’s positive side, the main index of Tehran Stock Exchange, TEDPIX, was spared further collapse as share prices could fall maximum 2% per day. However, in reality it did nothing to support millions of investors who took an unusually big hit after the share market bubble burst last summer.
Observers say limiting the daily price decline has undermined the liquidity of shares and only prolonged the correction phase as reflected in low trade value and the pattern of downturns. 
Dehqan-Dehnavi said the new price spread will be in force until the end of the calendar month on May 21. The decision is also in line with policy set by the High Council of Securities and Exchange in last month. 
The council approved the general policies regarding change in the daily price spread based on which daily price fluctuation limit is supposed to increase "gradually and when the market is prepared and investors are fully informed".
The bourse council did not specify the amount stock prices could fluctuate in one trading session and assigned the job to the SEO.