Govt may cut share settlement time gradually
The government plans to gradually reduce share trade settlement from T+2 to T+0 to boost market liquidity.Summary
The government intends to gradually reduce the share trade settlement cycle from the current T+2 to T+0 in order to increase market liquidity. Under the existing T+2 system, funds and securities are settled two business days after the trade date, whereas a T+0 system would settle trades on the same day. The Bangladesh Securities and Exchange Commission had previously shortened the cycle from T+3 to T+2 in 2014 as part of broader reforms. Moving to T+0 would allow foreign investors to repatriate profits and proceeds from shares bought through non‑resident investor taka accounts within one working day. Additionally, the government plans to digitalise and make time‑bound the initial public offering process, launching a digital platform for information sharing among issuer companies, issue managers, stock exchanges, the central depository (CDBL), and the regulator. It will also study the feasibility of regional dual listing for local companies.
(Source：The Daily Star)