The Dhaka Stock Exchange on Thursday decided that the bourse would introduce by February T+2 trading cycle (which means shares mature in two trading sessions) by scraping the existing T+3 trading cycle in a bid to reduce share settlement cycle by one day. In the existing transaction system, the DSE settles the transactions within three days of trading.The DSE made the decision at a board meeting presided over by its president Ahahsanul Islam Titu at its office in the city. Directors of the bourse were also present.
‘The DSE board made the decision in a bid to reduce the trading cycle by another day,’ DSE chief executive officer Swapan Kumar Bala told New Age.
He said, ‘Changing in the trading cycle will require an amendment to the trading regulations and approval from the regulatory body.’
Preparations of the member-brokers will also another factor to cope with the T+2 trading cycle, he said.
Another DSE official said, ‘We are expecting that the T+2 may be introduced from February 9 if no complexities arise in this connection.’
The post 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 jointly with the DSE.
Before the inauguration of T+2, CSE officials had said that the bourse proposed the DSE to introduce the trading cycle for five times as the CSE had taken all required preparations in this regard.
DSE chief executive officer Swapan Kumar Bala in November last year had informed the Bangladesh Securities and Exchange Commission that they experienced non-cooperation from 24 member-brokers as they used their own transaction system for settlement, which was the obstacle in introducing ‘electronic fund transaction’ on the bourse.
The BSEC at the meeting with the DSE had asked the bourse to include the stockbrokers into the ‘auto bank instruction’ system as soon as possible.
-With New Age input
