Disruption in CDBL hits stock market operations
Friday, 27 July 2007
FE Report
Operators and investors in the stock market faced serious problems Thursday as the operation of Central Depository Bangladesh Ltd (CDBL) remained suspended for the entire day due to technical faults.
The suspension of the CDBL operation for a whole day was the first ever experienced since the Central Depository System (CDS) began operating from January 24 of 2004, sources concerned said.
"We faced the disruption while crediting the 'share split' of Al Arafah Bank Ltd in the early hours of the day but everything will be rectified by tomorrow (Saturday)," a CDBL source told the FE.
The CDBL source said since crediting the share split of any listed company was the first case, the CDS operating company failed to imagine the magnitude and that's why the sudden disruption occurred.
Dhaka Stock Exchange (DSE) sources, however, said that disruption in the CDBL operations is nothing new, but Thursday's case was the worst ever.
"On a number of occasions in the recent past, we faced tremendous problems from the CDBL end which disrupted our normal functions and in one event on May 31, 2007, the whole operation of the company remained suspended during the trading hours before resuming at 9-00 pm on that day," a DSE source said.
Stock market operators said huge trading in recent period and operations of a whopping number of Beneficiary Owners (BO) accounts (about 1.5 million) are exerting tremendous pressure to the 'low capacity of the CDBL hardware.
"CDBL must upgrade its capacity to ensure the smooth and prompt service of the stock market as 120 companies out of 259 have already come under the CDS accounting for as much as about 90 per cent of the total market capitalisation of DSE," another DSE source said.
It said since the importance of the stock market in the national economy is growing, the CDS operation must be uninterrupted and prompt.
The total market capitalisation of DSE stood at Tk 542.95 billion Thursday with the daily average turnover worth Tk 2.23 billion in the week.
CDBL in a fax message to DSE also said that Thursday's operations have been rescheduled to Saturday from 9-30 am to 11-30 am.
"We could not settle a single trade, open any BO account and perform other related functions much to the sufferings of investors on the day," a DSE source said.
The physical movement of paper-based securities of 120 listed companies have become electronic under the CDBL operations.
Operators and investors in the stock market faced serious problems Thursday as the operation of Central Depository Bangladesh Ltd (CDBL) remained suspended for the entire day due to technical faults.
The suspension of the CDBL operation for a whole day was the first ever experienced since the Central Depository System (CDS) began operating from January 24 of 2004, sources concerned said.
"We faced the disruption while crediting the 'share split' of Al Arafah Bank Ltd in the early hours of the day but everything will be rectified by tomorrow (Saturday)," a CDBL source told the FE.
The CDBL source said since crediting the share split of any listed company was the first case, the CDS operating company failed to imagine the magnitude and that's why the sudden disruption occurred.
Dhaka Stock Exchange (DSE) sources, however, said that disruption in the CDBL operations is nothing new, but Thursday's case was the worst ever.
"On a number of occasions in the recent past, we faced tremendous problems from the CDBL end which disrupted our normal functions and in one event on May 31, 2007, the whole operation of the company remained suspended during the trading hours before resuming at 9-00 pm on that day," a DSE source said.
Stock market operators said huge trading in recent period and operations of a whopping number of Beneficiary Owners (BO) accounts (about 1.5 million) are exerting tremendous pressure to the 'low capacity of the CDBL hardware.
"CDBL must upgrade its capacity to ensure the smooth and prompt service of the stock market as 120 companies out of 259 have already come under the CDS accounting for as much as about 90 per cent of the total market capitalisation of DSE," another DSE source said.
It said since the importance of the stock market in the national economy is growing, the CDS operation must be uninterrupted and prompt.
The total market capitalisation of DSE stood at Tk 542.95 billion Thursday with the daily average turnover worth Tk 2.23 billion in the week.
CDBL in a fax message to DSE also said that Thursday's operations have been rescheduled to Saturday from 9-30 am to 11-30 am.
"We could not settle a single trade, open any BO account and perform other related functions much to the sufferings of investors on the day," a DSE source said.
The physical movement of paper-based securities of 120 listed companies have become electronic under the CDBL operations.