Chittagong Stock Exchange (CSE) is all set to introduce the trading cycle to T+2, reducing a-day from the existing T+3 from November 3 this year.
The T+2 means buyers will receive shares and sellers will get money two days after a trade is made.
On August 17, the port city bourse, decided to cut the trading cycle by one day at its board meeting.
The country’s second bourse has informed their members about the new trading cycle.
“We are all set to go with T+2 trading cycle,” said Syed Sajid Husain, the CSE chief executive officer (CEO). He said the gazette notification on new settlement regulations is under the process and will be done soon.
“T+2 trading cycle is mostly needed to curb manipulation and to increase trading volume and that’s why the decision is time befitting,” said a former director.
He said it is needed to upgrade our stock market to international standard.
In 2011, Bangladesh Securities and Exchange Commission (BSEC) approved the proposal by the twin bourses in reducing the trading cycle.
Later, Dhaka Stock Exchange (DSE) decided not to reduce the settlement period, considering the then current market situation.