Dhaka Stock Exchange Clearing & Settlement Process

The Clearing and Settlement module provides the management of trade from the point of entry into the Settlement Pool trade database until it has been delivered, settled and removed from the Settlement Pool. It consists of three major business processes.

Clearing: participant trade reporting, affirmation, billing and assigning settlement instructions.

Settlement: the process of overseeing that delivery of all instruments to the buyer and payment of all moneys to the seller has occurred before removing the trade from the settlement pool.

Regulation 4 of the Settlement of Stock Exchange Transactions Regulation 1998 has been given effect time to time. A new directive was made by SEC dated on 18th March 2003 "Adjusted due position mechanism for settlement of scrip only as provided by regulation 4(1) of settlement of Stock Exchange Transaction Regulations, 1998 shall remain suspended from 19th March 2003 until further order".

Here is a complete picture of the settlement system for all of our 427 Instruments in Five (5) groups in the Four (4) markets.

A Group: Number of Instruments are 338 (150 + 8D + 22M + 158TB), Here D for Debentures, M for Mutual funds & TB for Treasury Bonds (Trading in Public, Block & Odd-lot Market with trade for trade settlement facility for scrip only through DSE Clearing House on T+1, T+3 basis). "A" and "DA" are marked in BASES columns for Non-Demat & Demat instrument respectively in our TESA Trading Software. 

The above cycle is valid for A, B, G & N category instruments traded in Public, Block & Odd-lot market.

B Group: Number of Instruments are 44(Trading in Public, Block & Odd-lot Market with trade for trade settlement facility through DSE Clearing House on T+1, T+3 basis). "B" and "DB" are marked in BASES columns for Non-Demat & Demat instrument respectively in our TESA Trading software.

G Group: Number of Instrument is 0 (Trading in Public, Block & Odd-lot Market with trade for trade settlement facility through DSE Clearing House on T+1, T+3 basis). "G" and "DG" are marked in BASES columns for Non-Demat & Demat instrument respectively in our TESA Trading software.

N Group: Number of Instrument is 11(Trading in Public, Block & Odd-lot Market with trade for trade settlement facility through DSE Clearing House on T+1, T+3 basis). "N" and "DN" are marked in BASES columns for Non-Demat & Demat instrument respectively in our TESA Trading software.

Z Group: Number of Instruments are 34(Trading in Public, Block & Odd-lot Market with trade for trade settlement facility through DSE Clearing House on T+1, T+9 basis). "Z" and "DZ" are marked in BASES columns for Non-Demat & Demat instrument respectively in our TESA Trading software.

 

This cycle is valid only for Z group instruments traded in Public, Block & Odd-lot market.

Instruments Of All Groups Traded In Spot Market:

The above cycle is valid for A, B, G, N & Z category instruments traded in spot market.

 Instruments Of Foreign Trades (DVP) Of All Groups:

The above cycle is valid for A, B, G, N & Z category instruments of Foreign trade.

Remarks:

* If any instrument declared as Compulsory Spot then Trades of Block and Odd-lot market of that Instrument will be settled like Spot Market.

* Howla Charge, Laga Charge & Tax are always payable to Dhaka Stock Exchange at Pay-In date for both Buyer and Seller traded in Public, Block & Odd-lot Market.

* Howla Charge, Laga Charge & Tax are always payable to Dhaka Stock Exchange at T+1 day for both Buyer and Seller traded in Spot Market.

* Outside-Of-Netted settlement for "A" Group instrument has been withdrawn from 10^th Dec 2006.

* DVP Trades are Off-Market Settlement (Broker to Broker).

SETTLEMENT FOR DIFFERENT CATEGORIES INSTRUMENTS 

 01) For A group Instruments:

Market name                       Trade for Trade System          Settlement & Settlement Period

Public	Trade for Trade *	T+1 & T+3
Odd + Block	Trade for Trade	T+1 & T+3
Spot	Trade for Trade	T+0 & T+1

02) For B group Instruments:

Market name                        Trade for Trade System           Settlement & Settlement Period

Public	Trade for Trade *	T+1 & T+3
Odd + Block	Trade for Trade	T+1 & T+3
Spot (Before Book-closer)	Trade for Trade	T+0 & T+1

03) For G group Instruments:

Market name                        Trade for Trade System           Settlement & Settlement Period

Public	Trade for Trade *	T+1 & T+3
Odd + Block	Trade for Trade	T+1 & T+3
Spot (Before Book-closer)	Trade for Trade	T+0 & T+1

04) For N group Instruments:

Market name                        Trade for Trade System           Settlement & Settlement Period

Public	Trade for Trade *	T+1 & T+3
Odd + Block	Trade for Trade	T+1 & T+3
Spot (Before Book-closer)	Trade for Trade	T+0 & T+1

* As netting system for shares has withdrawn, for A, B, G & N group instrument, member will have to deposit the full shares at the DSE on T+1 after selling the shares, In case of purchasing such shares, the buyer will have to deposit the Balanced (Netted) money traded in Public, Block & Odd-lot market at the DSE on T+1.

05) For Z group Instruments:

Market name                        Trade for Trade System           Settlement & Settlement Period

Public	Trade for Trade *	T+1 & T+9
Odd + Block	Trade for Trade	T+1 & T+9
Spot (Before Book-closer)	Trade for Trade	T+0 & T+1

** Under the Trade for trade settlement system, member will have to deposit the full money at the DSE on T+1 after purchasing the shares, In case of selling such shares, the seller will have to deposit the full shares at the DSE on T+9.

DEMATE SHARE:
All selling shares have to transfer (Pay in) to the clearing account of selling Brokers from concerned BO account within settlement period. Regarding the cash payment the procedure will remain unchanged as mentioned above.

Source : dsebd.org