BSEC takes steps to make Class A and Class B shares salable the next day

The Bangladesh Securities and Exchange Commission (BSEC) has decided to shorten the settlement cycle for Class ‘A’ and Class ‘B’ shares so that they can be sold the day after purchase.

This settlement cycle is commonly referred to as “T plus one”.

Currently, investors can sell a share the day after purchase – following the “T plus two” settlement – as the Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE) and Central Depository Bangladesh Ltd (CDBL) take one day in between to settle the securities transaction.

On Monday, the commission wrote to the exchanges and CDBL asking for their detailed plan for implementing the change.

The BSEC also requested the exchanges and the depositary service provider to submit their roadmap with specific time slots for each of the necessary activities, proposals for modification of relevant rules and regulations, modification of the system, test of user acceptance and any other relevant matters.

According to the rules, class Z shares – shares of companies with production, general meeting and dividend irregularities – are subject to a “T plus four” settlement which refers to the fourth business day after purchase.

Earlier this year, the BSEC decided to make transactions more convenient and increase market liquidity and turnover by shortening the settlement cycle for ordinary shares of companies that exclude Z-class ones.

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