Online trading in DSE within six months
Wednesday, 4 November 2009
FE Report
The Dhaka Stock Exchange (DSE) will introduce online trading system within six months to expedite stock trading, the DSE chief said Tuesday.
"For fast moving markets, it is needed to introduce the system," DSE President Md Rakibur Rahman told reporters after a meeting with James F Moriarty, US Ambassador in Dhaka, at the bourse's auditorium.
"We'll try to translate internet-based trading system into reality within six months," Rahman said adding that the settlement period will be reduced to one day from the existing three days following the central bank's approval of online money transaction from one bank to another.
On Monday, Bangladesh Bank gave the groundbreaking directives to commercial banks through a circular, saying from now on their clients can pay power, water, gas and phone bills from bank accounts and transfer funds within a bank or to other banks.
The banks have been asked to accept any payment their clients make for purchase or sale of goods or services using e-commerce platform and facilitate online credit card payments in local currency.
Rakib said the US ambassador, who visited the bourse on the day, appreciated the development of the Bangladesh stock markets and called to maintain transparency and accountability further in the market to protect the small investors' interest.
Meanwhile James F Moriarty, in his written speech said, "Bangladesh's financial sector was largely insulated from the global financial crisis. The country still must guard against threats to its capital markets, however. All markets need independent and transparent regulatory oversight to help investors minimise risk."
He said, a lack of independent regulators or an opaque system of rules means capital markets are vulnerable to manipulation, corruption and collapse.
"A transparent and equitably-applied rules help ensure confidence in markets. And confidence is the lynch-pin of market structures," he said adding that when people lose confidence, markets crash, individuals lose their savings and investments.
"I urge DSE to implement clear and fair financial rules that allow shareholders to maximise benefits and minimise risks," he said.
He said, "Investors have more confidence in markets that apply regulations equitably and clearly and that protect against corruption and manipulation. Confident investors attract more savers and investors, which in turn leads to healthy, stable markets."
Capital markets are yet another toll for Bangladesh to use as it builds an economy that raises incomes, alleviates poverty and moves the country ahead, he said.
Internet-based or online trading system means buying and selling stocks by giving the order through internet, usually on a broker's form. Confirmation is done by mail or e-mail.
Through this system, anybody can observe the market situation on the internet and place buy and sale order through one's respective broker.
The Dhaka Stock Exchange (DSE) will introduce online trading system within six months to expedite stock trading, the DSE chief said Tuesday.
"For fast moving markets, it is needed to introduce the system," DSE President Md Rakibur Rahman told reporters after a meeting with James F Moriarty, US Ambassador in Dhaka, at the bourse's auditorium.
"We'll try to translate internet-based trading system into reality within six months," Rahman said adding that the settlement period will be reduced to one day from the existing three days following the central bank's approval of online money transaction from one bank to another.
On Monday, Bangladesh Bank gave the groundbreaking directives to commercial banks through a circular, saying from now on their clients can pay power, water, gas and phone bills from bank accounts and transfer funds within a bank or to other banks.
The banks have been asked to accept any payment their clients make for purchase or sale of goods or services using e-commerce platform and facilitate online credit card payments in local currency.
Rakib said the US ambassador, who visited the bourse on the day, appreciated the development of the Bangladesh stock markets and called to maintain transparency and accountability further in the market to protect the small investors' interest.
Meanwhile James F Moriarty, in his written speech said, "Bangladesh's financial sector was largely insulated from the global financial crisis. The country still must guard against threats to its capital markets, however. All markets need independent and transparent regulatory oversight to help investors minimise risk."
He said, a lack of independent regulators or an opaque system of rules means capital markets are vulnerable to manipulation, corruption and collapse.
"A transparent and equitably-applied rules help ensure confidence in markets. And confidence is the lynch-pin of market structures," he said adding that when people lose confidence, markets crash, individuals lose their savings and investments.
"I urge DSE to implement clear and fair financial rules that allow shareholders to maximise benefits and minimise risks," he said.
He said, "Investors have more confidence in markets that apply regulations equitably and clearly and that protect against corruption and manipulation. Confident investors attract more savers and investors, which in turn leads to healthy, stable markets."
Capital markets are yet another toll for Bangladesh to use as it builds an economy that raises incomes, alleviates poverty and moves the country ahead, he said.
Internet-based or online trading system means buying and selling stocks by giving the order through internet, usually on a broker's form. Confirmation is done by mail or e-mail.
Through this system, anybody can observe the market situation on the internet and place buy and sale order through one's respective broker.