Dhaka, Bangladesh (BBN) - Dhaka Stock Exchange (DSE) is going to cut the trading settlement period by a day from the next month aiming to boost market activities.
Currently, the buyer must make payment and the seller must transfer ownership of the stock to the buyer within three days after the trade was made. From next month, the transaction obligations must be completed within two days of the transaction date.
The move, which came at a board meeting on Thursday, will enhance the liquidity flow to the market and increase the supply of shares, DSE President Ahsanul Islam said on Saturday, according to The Daily Star reports.
Chittagong Stock Exchange (CSE), however, has already introduced the shortened trading settlement period.
But before the new settlement period takes effect, the Settlement of Stock Exchange Transactions Regulations 1998 needs to be modified, he said.
A draft amendment will be submitted to the Bangladesh Securities and Exchange Commission for regulatory approval. Simultaneously, the DSE management will inform its members to take preparations for the new settlement period.
BBN/SSR/AD-26Jan14-11:44 am (BST)
