Dhaka Stock Exchange (DSE) has decided to introduce the reduced trading cycle--T+2--from April 16 this year replacing the existing trading cycle--T+3--in a bid to increase the liquidity flow in the capital market, officials said.
After the introduction of the T+2 trading cycle, the buyers will receive shares and the sellers will get money two days after the transactions are executed.
Presently, an investor gets cheque against his sale order after three days of executing his sale order.
"The DSE is likely to make the formal announcement of introducing the T+2 on Sunday (today)," said a DSE official.
The decision of introducing the reduced trading cycle on the DSE comes after a long discussion although earlier the DSE itself submitted the proposal of introducing the T+2 to the securities regulator.
After the submission of the proposal, the DSE later backtracked from the initiative of introducing the T+2 considering the market situation.
But the port city bourse Chittagong Stock Exchange (CSE) was stick to its proposal and introduced the T+2 trading cycle on November 3, 2013.
Many stakeholders of the capital market have supported the T+2 stating that the investors' cost of trading will come down and they will get their funds quickly from sale of shares, which will ease liquidity shortage in the market.
Some other stakeholders, who were skeptical about the success of T+2, have stressed on fund availability in investors' accounts at the time of making any buy order for the sake of the reduced trading cycle.
DSE to launch T+2 cycle from Apr 16
FE Report | Published: March 16, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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