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Dhaka Tribune

DSE to introduce T+2 settlement period on April 16

Update : 16 Mar 2014, 06:57 PM

Dhaka Stock Exchange has shortened the share trading settlement period by one day with effect from April 16 to speed up market activities.

Currently, the buyers have to settle payment and sellers transfer ownership of stock to buyer within three days after executing trade (T+3).

“This is for kind information of all concerned that DSE is pleased to declare April 16, 2014 as the effective date for T+2 settlement cycle,” said the bourse in a statement yesterday.

The move is to boost trading activities, thus increasing liquidity flow to the capital market, said an official.  The decision of launching the reduced trading cycle on the DSE comes after discussion for 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.

Some market players have supported T+2 stating that the investors’ cost of trading will come down and they will get their funds quickly from sale of shares, which will ease liquidity shortage in the market.

However, some have opposed and remained skeptical about the success of T+2, raising question on fund availability in investors’ accounts at the time of making any buy order. 

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