The commission will make formal announcement by May and electronic settlement of share trading of the companies will begin in phases starting from June, capital market sources said.

SEC sources said the capital market watchdog will likely to ask all the 127 securities of A category to develop required infrastructure and sign agreement with Central Depository Bangladesh Ltd (CDBL), the service provider, by end of the year.

Sources said after completion of A category, the SEC will ask B category securities to go for the scripless trading.

Fourteen companies have so far been selected for the CDS. Square Pharma was the first company whose share trade settlement was done electronically on January 24.

Other 13 issues are Dutch-Bangla Bank, Mutual Trust Bank, BOC Bangladesh, Singer Bangladesh, Bata Shoe, AMCL PRAN, Apex Tannery, AB Bank, Green Delta Insurance, Lafarge Surma Cement, Infrastructure Development Leasing Company, ACI Ltd and British American Tobacco Bangladesh.

The SEC asked the 13 companies to sign agreement with the CDBL and develop necessary infrastructure such as online connectivity by April 8.

Spot trading of the securities will be held during April 24-26 and share trading of the companies will remain suspended during April 27-29 for smooth conversion of paper share certificates into electronic ones.

Under the CDS, all paper share certificates are converted into electronic ones and transactions are held electronically. Listed companies will no longer need to maintain full-fledged share department in office as the system will do all the depository and transfer jobs.