Dhaka Stock Exchange (DSE) has sought Bangladesh Bank’s support for a shift to next-day stock settlement as part of efforts to enhance market efficiency and liquidity.
The premier bourse discussed it with Bangladesh Bank Governor Md Mostakur Rahman on Thursday, during a meeting led by its Chairman Mominul Islam.
The DSE delegation emphasised that transitioning to a T+1 settlement cycle, from T+2, would streamline trading operations and improve the overall market environment.
For this, they recommended extending the Real-Time Gross Settlement (RTGS) system timeline to facilitate quicker financial transactions and proposed measures to enhance the technical capacity of DSE’s FDR and SND accounts through gradual cash liquidation.
To make the market more accessible to international investors, the delegation suggested simplifying the process for opening NITA accounts and improving transparency by granting stock exchanges better access to CIB reports.
The delegation also called for the introduction of a market-based recapitalisation system for IPOs and bonds, the creation of a secondary market for government securities, and the launch of Sukuk trading.
Alongside operational reforms, the delegation raised concerns about the merger of five weak Islamic banks—First Security Islami Bank, Social Islami Bank, Global Islami Bank, Union Bank, and EXIM Bank—warning that it had caused uncertainty among minority shareholders.
They called on Bangladesh Bank to ensure that small investors are protected, compensated fairly, and that the merger process remains transparent.
Governor Rahman responded positively, assuring the delegation that their concerns would be addressed and that necessary actions would be taken to ensure investor protection and market fairness.
These proposals reflect DSE’s commitment to transforming Bangladesh’s capital market into a more efficient, competitive, and globally aligned financial ecosystem, said its officials.
The shift to T+1 settlement, in particular, is seen as a key step towards improving market operations, increasing liquidity, and boosting investor confidence.
DSE Directors Syed Hammadul Karim, Snehasish Barua, Minhaz Mannan Emon, Richard D’ Rozario, Md Sajedul Islam and Managing Director Nuzhat Anwar were present in the meeting.
