Z-category share settlement period further extended
Tuesday, 11 August 2009
FE Report
The Securities and Exchange Commission (SEC) has directed the bourses to extend settlement day of the Z-category shares from seven to nine trading days in order to check recent foul play.
SEC said the new step will discourage the investors to trade Z-category issues.
It also directed the brokerage houses to deliver securities and make payment to the clearing house in the same day when investors bought or sold shares.
"Clearing house" means the facilities provided by the stock exchange for completion of transactions through receipts and deliveries of securities and cheque or pay order or demand drafts.
The SEC move came in the wake of recent unusual price hike of the Z-category companies.
"Such directives were given aiming to check foul play with the Z-category shares," said Anwarul Kabir Bhuiyan, executive director of SEC after a meeting Monday.
Currently, three settlement days or T+3 are for A, B and N categories companies. 'Settlement day' means the day on which transactions that were carried out by the members on a trading day.
Thirty three companies are being traded at the Dhaka Stock Exchange (DSE) and around 40 Chittagong Stock Exchange (CSE) in the Z-category.
The Securities and Exchange Commission (SEC) has directed the bourses to extend settlement day of the Z-category shares from seven to nine trading days in order to check recent foul play.
SEC said the new step will discourage the investors to trade Z-category issues.
It also directed the brokerage houses to deliver securities and make payment to the clearing house in the same day when investors bought or sold shares.
"Clearing house" means the facilities provided by the stock exchange for completion of transactions through receipts and deliveries of securities and cheque or pay order or demand drafts.
The SEC move came in the wake of recent unusual price hike of the Z-category companies.
"Such directives were given aiming to check foul play with the Z-category shares," said Anwarul Kabir Bhuiyan, executive director of SEC after a meeting Monday.
Currently, three settlement days or T+3 are for A, B and N categories companies. 'Settlement day' means the day on which transactions that were carried out by the members on a trading day.
Thirty three companies are being traded at the Dhaka Stock Exchange (DSE) and around 40 Chittagong Stock Exchange (CSE) in the Z-category.