In the wake of lackluster trading over the last six months following the postponement of netting system by the market regulators, the CSE had demanded reintroduction of the system with a view to boost transactions.

Trading took-off sharply on September 20 when the system was reintroduced but on the third day it started plummeting again.

On September 20, the trade volume at CSE rose to Tk 38.15 lakh from Tk 14.21 lakh on the previous trading day. On the second day it surged to Tk 60.46 lakh but the very next day it came down sharply to only Tk 15.49 lakh.

The CSE launched its operation with netting mode of settlement but on March 19 this year, the Securities and Exchange Commission (SEC) suspended it on allegation of misuse of the system by manipulators.

The regulators allowed only A-category shares to enjoy the netting system under which shares bought and sold electronically are settled by depositing the total scrips and total money at the end of the day.

The SEC had cancelled the system when it found that small investors were falling in trap of manipulators who resort to trading quoting artificial prices.

"Investors used to be lured by such artificial quotes and were handed with the shares at fictitious rates," an SEC official said.

SEC officials said they had allowed the CSE to reintroduce the system based on commitments that the bourse would take all necessary measures to stop such malpractice.

"We are now closely monitoring the trading and settlement of the CSE and if we detect any manipulation, we will take necessary action," the SEC official said.

Meanwhile, the Dhaka Stock exchange (DSE) management refused to reintroduce the system saying they find the market to be behaving normally after withdrawal of the netting system.