DSE Clearing & Settlement System

The Automated Clearing and Settlement System (CnS) is developed to automate all post trade activities regarding clearing and settlement. Its main stakeholders are Brokerage houses, CDBL, Clearing Banks and DSE Finance Division. Major activities of the system are as below:

Settlement: In settlement process DSE receives all charges and AIT from buying and selling brokers. DSE also receives receivable amount from buying brokers and earmark selling shares in selling broker clearing account through CDBL settlement schedule. Regulation 4 of the DHAKA STOCK EXCHANGE (SETTLEMENT OF TRANSACTIONS) REGULATIONS, 2013 has been given effect time to time.

Clearing: In clearing process DSE make payment by credit instruction and deliver share through CDBL clearing schedule to buying broker.

Here is a complete picture of the settlement system for all Instruments categories as A, B, G, N and Z which are traded in DSE.

A-Category Companies: Companies which are regular in holding the annual general meetings and have declared dividend at the rate of ten percent or more in the last English calendar year.

B-Category Companies: Companies which are regular in holding the annual general meetings but have failed to declare dividend at least at the rate of ten percent in the last English calendar year.

G-Category Companies: Green-field companies of which shares are listed with the DSE before the company goes into commercial operation and prior to listing the said company declares the year of first declaration of dividend.

N-Category Companies: Newly listed companies except green-field companies which shall be transferred to other categories in accordance with their first dividend declaration and respective compliance after listing of their shares.


Z-Category Companies:

• Any listed company shall be shifted or transferred to the "Z-category" immediately for any of the following reasons or events:
  1. if the issuer fails to declare cash dividend for a period of 2 (two) consecutive years from the date of declaration of last dividend, or the date of listing with the stock exchange, as the case may be;
  2. if the issuer fails to hold its Annual General Meeting (AGM) within a stipulated time as per relevant laws:
     Provided that in case of non-holding of AGM in the consequence of any writ petition or any legal process pending before the court, i.e. being sub-judice matter or in the event of force majeure maximum 2 (two) years may be considered for placement or adjustment of securities to "Z-category";
  3. if the issuer company is not in operation or production or exploration continuously for a period of minimum 6 (six) months excluding any such period for renovation or BMRE (Balancing, Modernization, Rehabilitation and Expansion) or in the event of force majeure;
  4. if net operating loss or negative cash flows from operation is reported for a period of 2 (two) consecutive years;
  5. if negative balance of retained earnings exceeds its paid up capital.
• Any listed company shall be placed or adjusted to "Z-category" subject to approval of the Commission for any non-compliance with any provision of securities laws, rules, regulations, notifications. orders, directives as well as failure to comply with the continuous listing requirements as per listing regulations of the stock exchanges and the agreement thereof.
• The stock exchange shall review such compliances and non-compliances by the listed companies regularly and shall place a company or adjust to "Z-category" subject to prior approval of the Commission.
• Clearing Day for contracts listed under Z-category other than contracts in spot market or contracts with contract (howla) type Delivery Versus Payment "DVP" shall be the third day following the Trading Day (i.e. T+3).