BSEC wants to reduce transaction settlement time

The Bangladesh Securities and Exchange Commission (BSEC), the regulator of the capital market, wants to reduce the time for settlement of transactions in the stock market by one more day. BSEC wants to reduce the transaction settlement time to T + 1. If the decision is effective, investors will be able to sell the shares the day after the purchase. At present the transaction is settled in T + 2. In other words, the transaction is settled on the third day after the purchase of shares.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Central Depository Bangladesh Limited (CDBL), the country’s two stock exchanges and stockholders, has been asked for its opinion on reducing the transaction settlement time. A letter in this regard was sent by BSEC on Sunday. According to BSEC sources, the company wants to implement the new time of transaction settlement with the views of all parties concerned after some time. For the time being, BSEC is thinking of reducing the transaction time only for ‘A’ and ‘B’ class companies.

Talking to multiple stakeholders including DSE, it has been learned that in order to reduce the transaction settlement time, some changes have to be made in the automated transaction settlement system and software of the stock exchange. For this reason, the two stock exchanges have been asked to provide a roadmap or specific plan for implementation in this regard.

On condition of anonymity, top officials of several top brokerage houses said that if the transaction was brought down to T + 1 at the time of settlement, it could create some problems for foreign investors. This is because at present the shares of foreign investors are transferred as clearing the day after the sale of the shares.

This is because the shares of foreign investors are held by the custodian or custodian. In that case, the transaction of those shares was settled on the third day. But now that the settlement time has been reduced, there could be some problems with the transfer of shares to foreigners. Because, on the day you sell the shares, it may be a bit difficult to transfer those shares from the custodian as clearing. However, the other side thinks that if the transaction settlement time is reduced, it will increase the transaction in the market.

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