Chittagong Stock Exchange Limited.
CLEARING & SETTLEMENT
CLEARING ORGANIZATION

CSE CLEARING HOUSE

CSE provide settlement and clearing services for members through the Clearing House. The Clearing House provides the members and the CDBL each members’ settlement obligations i.e. what counter parties owe and what counter parties are due to receive on the settlement date after the trading period is over. It acts as a common agent between members by delivering and receiving their securities and cheques.

The Clearing House also handles failed trade, bad delivery, auction settlement etc.

CENTRAL DEPOSITORIES OF BANGLADESH LIMITED (CDBL)

The Central Depositories of Bangladesh Limited (CDBL), the only depositories in Bangladesh provides facilities for the settlement of transactions of dematerialized securities in CSE. [Top]

CSE SETTLEMENT SYSTEM

TRANSFER OF SECURITIES

The selling members deliver the securities to the Clearing House on the pay-in day in case of physical settlement and make available the required securities in the clearing accounts maintained with CDBL in case of dematerialised securities. Members are required to open clearing accounts with depository participants of CDBL.

The Clearing House delivers the securities certificates to the buying members on the pay-out day and CDBL credit the required securities to the buying members’ clearing account in case of dematerialised securities if there is no receivable money pending.

TRANSFER OF FUNDS

The Clearing House receives cheques from the buying member on the pay in day and the selling member received cheque from the Clearing House on the pay-out day if there are no receivable securities pending.

FAILED TRADES

If a member fails to deliver securities or make payment on the settlement day, the stock exchange automatically auctioned the unsettled transaction on the risk and account of the defaulting member. No prior notice is given. The defaulting member is not allowed to carry out trading from the day after settlement day until payment of the outstanding money and a fine as decided by CSE.

SPECIAL SETTLEMENT REQUIREMENTS FOR FOREIGN INVESTOR INVOLVING CUSTODIAN BANK

Settlement of transaction of foreign buyer and/or seller involving a custodial bank is done directly between the members through the custodial bank with intimation to the clearing house. [Top]

CATEGORY WISE SETTLEMENT SYSTEM AND SETTLEMENT CYCLE

Category

Criteria

Settlement System

Settlement Cycle
A Mutual Fund, Regular AGM, Declared and paid at least 10% dividend within sixty days from the date of declaration and Submission of compliance re thereof to SEC within seven working days from the date completion of disbursement Netting for payment obligation and trade for trade for securities obligation Pay in day = T+1
Pay out day = T+3
B Regular AGM, Declared and paid Dividend less than 10% and Submission of the compliance Report to SEC within the time limit Trade for Trade for both securities & money obligation Pay in day = T+ 1
Pay out day=T+3
G Greenfield companies Trade for Trade for both securities & money obligation Pay in day = T+ 1
Pay out day=T+3
N All newly listed companies except Greenfield companies Trade for Trade for both securities & money obligation Pay in day = T+ 1
Pay out day=T+3
Z Irregular AGM or Declared no dividend at all or declared dividend but failed to pay it off or Submission of the requisite compliance report to SEC within the time limit or Not in operation for six months, or Accumulated loss after adjustment of reserve, if any, is negative and exceeded its paid-up capital excluding those who declared dividend. Trade for Trade for both securities & money obligation Pay in day = T+3
Pay out day = T+7
  • Pay and pay out day for Spot order transactions of all categories of companies is T+0 and T+1 respectively.
  • Direct settlement of foreign buyer and/seller shall be within T+5 and intimation thereof to CSE within T+6
  • [Notes: “T” stands for “Trading day”;] [Top]
 
 
     

© 2000-2007 Chittagong Stock Exchange Limited All rights reserved
CSE Building, 1080, Sk. Mujib Road, Agrabad, Chittagong, Bangladesh
Tel:+88(0) 31-714632-3, +88(0) 31-720871 Fax: +88(0) 31-714101
Web Site- URL: http://www.cse.com.bd E-mail: info@cse.com.bd

To Best View Screen Resolution 1024 X 768 Recommended
Design/Developed & Maintained by: www.aspectratio.com.bd