Share Trading Settlement
Non-co-op of 24 DSE members delays introduction of T+2
Non-cooperation of 24 member-brokers is the reason behind the Dhaka Stock Exchange’s delay in introducing the T+2 trading cycle replacing the existing T+3, the bourse has told the Bangladesh Securities and Exchange Commission. The prime bourse revealed this in a coordination meeting held at the BSEC office on November 13, a report on the meeting has said.Representative from Bangladesh Bank, BSEC, Central Depository Bangladesh and Dhaka and Chittagong stock exchanges were present at the meeting.
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. The Chittagong Stock Exchange has already introduced the T+2 trading system.
DSE chief executive officer Swapan Kumar Bala said at the meeting, ‘We have experienced non-cooperation from 24 member-brokers as they use their own transaction system for settlement,
which is the obstacle in introducing ‘electronic fund transaction’ on the bourse.’
‘Including the 24 member-brokers, around 40 stock dealers of the bourse remain out of the auto bank instruction system,’ he added.
BSEC representatives attending the meeting asked the bourse to include the stockbrokers into the ‘auto bank instruction’ system.
The commission also said that the regulator was willing to provide regulatory assistance to the bourse in this regard.
Another DSE official said that most of the influential member-brokers of the bourse were against the introduction of T+2 trading cycle as the existing system allows buying shares without having minimum balance in the BO account.
But, the introduction of the T+2 system will mean that no buy order can be processed if the account falls short of adequate balance.
The introduction of the T+2 system will also reduce fraudulent activities as well, he added.
-With New Age input
