Dhaka Stock Exchange (DSE) has made new share trading cycle settlement effective from today to bring dynamism in trading activities that currently remained dull.
In mid-last month, it had decided to cut the trading settlement period to two days (T+2) from existing three days (T+3).
“Now buyers will have to make payment and sellers will have to transfer ownership of stocks within two days after the trade taking place,” said an official.
The DSE in a statement yesterday said this is for kind information of all concerned that Dhaka Stock Exchange Limited is pleased to declare April 16, 2014 as the effective date for T+2 settlement cycle.
The move is to increase trading activities, thus increasing liquidity flow to the stock market, said an official. The decision of launching the reduced trading cycle on the DSE comes after discussion for many months.
Earlier, the DSE submitted the proposal of introducing the T+2 to the securities regulator. After the submission of the proposal, it backtracked from introducing the short settlement period considering the market situation.
The country’s second burse Chittagong Stock Exchange, however, has already shortened share trading settlement period of T+2 with effect from November 3 last year.