The Dhaka Stock Exchange is unlikely to meet its target to introduce the T+2 trading cycle, shares maturity in two trading session, this month as the bourse is yet to get a published gazette notification in this regard. In the existing transaction system, the DSE settles the transactions within three days of trading, which is called T+3 while settling the transactions within two day is called T+2.
In January this year, the DSE board presided over by the then president Ahahsanul Islam Titu decided to introduce T+2 trading cycle, scrapping the T+3 trading cycle, for shares maturity in two trading session.
Most of the developed stock markets have the facility of trade in T+2 trading cycle, while some stock market has T+1 trading cycle to make the stock market vibrant.
The DSE managing director Swapan Kumar Bala on Thursday told New Age, ‘We are now prepared to introduce the T+2 trading cycle except the gazette notification is yet to be published which is now on progress.’
‘We hope that the notification will be published within next week,’ Bala said.
‘Once the gazette notification is published, it will take another 15 days to introduce the T+2 trading cycle due to legal requirements,’ he added.
During the 15 days time, TRAC-holders and investors will get time to cope with the T+2 trading cycle, another DSE official said.
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 T+2 collectively with DSE.
DSE chief executive officer Swapan Kumar Bala in November last year had informed the Bangladesh Securities and Exchange Commission 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.
Including the 24 member-brokers, around 40 stock dealers of the bourse remained out of the auto bank instruction system, he informed.
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
