Vol. 4 Num 237 Sat. January 24, 2004  

Share trade settlement thru' CDS begins today

Settlement of share trading through central depository system (CDS) begins today in both the bourses with securities of Square Pharmaceuticals.

After Square Pharma, shares of other listed companies will be dematerialised in phases. A category and B category listed companies will get priorities.

Both the bourses arranged spot trading of the Square Pharma shares during January 10-15 period and suspended trading of the securities from January 17 to 22 for smooth dematerialisation of physical share certificates.

Earlier, SEC on December 23 last year issued business commencement licence to Central Depository Bangladesh Limited (CDBL), service provider of CDS, and asked it to launch operation from January 24. Meanwhile, the capital market regulators have issued licences to 32 brokers including DSE and CSE to become depository participants.

SEC Chairman Mirza Azizul Islam will inaugurate depository participant counter of Dhaka Stock Exchange at DSE office today.

The CDS will eliminate paper share certificates. The issuing companies will no longer be required to maintain full-fledged share departments. There will be no risk of fake, soiled, lost shares. It will expedite share settlement and smoothen trading. Experts think the CDS launching is a milestone for the country's capital market.