DSE seeks BSEC approval for single-scrip netting facility

December 30, 2014

BSEC may decide about the request Wednesday
The Dhaka Stock Exchange on Monday put forward a proposal that the Bangladesh Securities and Exchange Commission should allow single-scrip netting facility at the bourse as the new trading system introduced by the DSE is capable of preventing misuse of the scope.
The bourse made the proposal after its board had approved it on Sunday following request from its trading right entitlement certificate holders, a senior DSE official told New Age.
Top 30 stockbrokers of the bourse on Sunday at a meeting with the DSE management requested the bourse to take steps to allow single-scrip netting facility to boost transaction at the market.
The transaction at the bourse fell sharply after the launch of the new trading system at the DSE on December 11.
The Chittagong Stock Exchange early this year also sought single-scrip netting facility.
Although there is no bar in the DSE’s regulations in this connection, a BSEC directive is in place baring single-scrip netting, the DSE official said.
Once the BSEC directive is withdrawn, the DSE will be able to allow its investors single-scrip netting, he said.
‘As the new trading system is well synchronised with the Central Depository Bangladesh’s database, none would be able to abuse the scope,’ the official said.
The DSE also requested the BSEC to place its single-scrip netting facility proposal before the commission’s next meeting scheduled to be held on Wednesday.
The official said that DSE managing director Swapan Kumar Bala and chief regulatory officer AKM Ziaul Hasan Khan on Monday also discussed the proposal with senior officials of the commission.
The DSE on the day also requested the commission to allow T+0 (spot) settlements of treasury bonds.

-With New Age input

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