Dhaka Stock Exchange is going to introduce T+2, which will allow maturity of shares in two trading sessions, from April 16 scrapping its existing T+3 trading cycle, according to a DSE web post published on Sunday. DSE officials said after the introduction of T+2 trading cycle investors would be able to sell shares after two trading sessions of purchase instead of present three days.
After the introduction of T+2 trading cycle, shares under A, B and N category will be settled in T+2, while shares under the Z (junk) category will be settled as per the previous system of T+8, under which shares cannot be sold before eight days of purchase.
The DSE board on January decided to introduce T+2 trading cycle within February. But, delay in publishing the amended settlement regulations and lack of preparation of the foreign portfolio managers delayed the process.
The port city bourse of the country, Chittagong Stock Exchange, on November 3 last year introduced T+2 settlement cycle after several attempts to start the system with the DSE.
Following pressure from the regulator the DSE board in January this year decided to introduce T+2 trading cycle within February. The bourse failed to introduce the T+2 trading cycle in time because of the delay in publication of the gazette notification of the amended settlement regulations of the bourse.
DSE managing director Swapan Kumar Bala in November last year had informed the BSEC that they had experienced non-cooperation from 24 member-brokers as they used their own transaction system for settlement, which was the obstacle to introducing ‘electronic fund transaction’ on the bourse.
At the November 3 last year meeting, Swapan had also informed the BSEC that including the 24 member-brokers,
around 40 stock dealers of the bourse remained out of the auto bank instruction system.
The BSEC at the meeting asked the bourse to include the stockbrokers into the ‘auto bank instruction’ system as soon as possible.
Following the BSEC directive all the trading rights entitlement certificate holders converted their previous transaction system.
-With New Age input
