Custody/clearing  
BRAC BANK    
 
 
BANGLADESH - Capital Market Infrastructure Summary

Central Securities Depository
Central Depository of Bangladesh Limited (CDBL)

Settlement Cycle
T+3 generally

Comment
Current clearing, settlement and custody processes in Bangladesh’s capital markets do not provide for the efficient infrastructure necessary for future market development. The Bangladesh Securities and Exchange Commission has set out a master plan to address five areas of weakness: duplication of clearing and settlement infrastructure at the Dhaka and Chittagong stock exchanges; lack of delivery versus payment (DVP) for indirect market participants; the need for participants to provide cash and securities 2 days ahead of settlement date; the payment of cash dividends direct from issuers to end investors, rather than flowing through the depository, causing delay, uncertainty and inefficiency; and lack of 'straight through processing' (STP), leading to manual rekeying of orders and file transmission, and increasing operational risk.


Key terms defined in our glossary:

Central Securities Depository
Settlement Cycle

 
The above information is written as a general guide only and is subject to change. Please refer to our 'Terms' page for more details.