The Dhaka Stock Exchange (DSE) has sought the regulator's permission to revise the settlement period of stocks transaction for implementing the reduced T+2 cycle, officials said.
The move came after the Securities and Exchange Commission (SEC) took a decision on October 18 to reduce the settlement cycle of transaction of shares, except the 'Z' category shares, to T+2 from the existing T+3, following a proposal made by both the bourses.
On October 25, the DSE board decided to implement the reduced settlement cycle (T+2) after restoration of normalcy in the market.
However, the country's premier bourse later turned from the decision and took initiative to implement the reduced settlement cycle. The DSE sent a letter Monday to the SEC, seeking its permission to revise Section 8 of the Settlement of Stock Exchange Transactions Regulations 1998. After publishing a gazette notification by the SEC, the DSE will revise the regulation regarding the settlement cycle and implement the T+2 cycle.
Presently, investors are allowed to sell shares of 'A', 'B' and 'N' categories on the fourth day of purchase in accordance with the T+3 trading cycle. On the other hand, 'Z' category shares can be sold on the tenth day of purchase as per the T+9 cycle.
After the implementation of the T+2 cycle, the investors will be allowed to sell their shares on the third day of purchase.
Source: thefinancialexpress-bd.com
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