DSE to launch T+2 settlement cycle Apr 1616 April 2014
BSS, Dhaka :
Dhaka Stock Exchange (DSE) is introducing T+2 (Trading day plus 2) trading settlement system tomorrow (Wednesday), replacing the current T+3 trading cycle.
The new settlement cycle will allow maturity of shares in two trading sessions instead of current three trading sessions, meaning investors would be able to sell shares after two trading sessions of purchase instead of present three days.
After the introduction of T+2 trading cycle, shares under A, B and N category will be settled in T+2, while shares under the Z (junk) category will be settled as per the previous system of T+8, under which shares cannot be sold before eight days of purchase.
The DSE board in January decided to introduce T+2 trading cycle within February but launching of the new system was delayed for necessary preparation.
The port city bourse of the country, Chittagong Stock Exchange (CSE), on November 3 last year introduced T+2 settlement cycle after several attempts to start the system with the DSE.
The DSE authorities are also introducing tomorrow (Wednesday) the new provision on TREC (Trading Right Entitlement Certificate) Holder's Margin.
Under the new provision, a TREC holder should deposit the additional margin within hour of exceeding his free limit of trade exposure. The stock exchange authorities will also allow TEAC holders buy new shares through check only after encashment of the payment instrument.