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Shares on the benchmark DSE General Index showed a loss of more than six percent at one point during a volatile day before recovering to close down 1.56 percent at 8,451.59
"There were 2,000-3,000 small investors who protested over the stock market plunge. They broke up as the market rebounded later in the day," local police chief Tofazzal Hossain told AFP.
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Scores of others held protests in the southern city of Barisal, police said.
Reaz Islam, head of New York-based LR Global Fund, said a series of measures to cool the overheated stock exchange by the country's Securities and Exchange Commission (SEC) and the central bank had created panic among investors.
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On Monday, the SEC had stopped brokerage houses from executing share transactions until the cheques are cashed, but Islam said this order has been frozen on Wednesday, which had helped