Overview of Operational Activities Followed by Dhaka Stock Exchange Ltd (Part 2)

Internet Trading System:

Internet Trading System (ITS) is DSE venture on behalf of the brokers. This site has been provided by the Dhaka stock exchange so as to give customers the convenience to trade or put orders on DSE from any where in the world irrespective of the trading hours of the stock exchange. The trading is done by registering on the site under some existing broker of the stock exchange.

Steps for trading through Internet:

Register on the site as an investor. It is necessary to register under some existing broker/sub broker in the Dhaka stock exchange.

For additional security there are two passwords, browsing password, which is reduced every time, a transaction like order entry, modification etc. is made.

Trading can begin only after the respective broker has approved the registration and assigned limits for trading.

The investor can do trading during the trading hours of DSE as well as put offline orders during the non-trading hours, which get added into the system in the next trading session.

The investor can trade only unto the limit assigned to him by his broker. On exceeding this limit the investor gets suspended.

The objective of ITS is to spread the capital market of Bangladesh begun the larger cities of the country. Through this system, you can witness the market scenario on the internet and place buy/sell order through your broker concurrently.

Usually stockbrokers make their own website interactive for their clientele. Here DSE it self is offering the service on behalf of the stockbrokers. Choose your broker we provide. We treat all members equally. If you ask which broker to open an account with? Our answer is it is your choice.

The stock exchange will make your broker liable for settlement of your trades. So naturally they will be careful extremely to set your trade limit. Check with your brokers to make sure you have sufficient funds and shares deposited with your broker. Otherwise your order will bounce back invalid.

Procedures:

Agreement with a broker: As an individual investor you need to upon on accent with a broker. When you are willing to use Internet Trading facilities, you will need to fill in a special ITS account opening form. The terms and conditions to be followed by you and your broker for ITS, will be little different from the regular trading account.

All brokers are not eligible for ITS. Please see in the relevant section of this website or e-mail to us for a list of brokers who can offer you ITS.

Although the form is available on the net, you still need to fill in and submit to the chosen broker a hard copy of the form duly filled in.

Passwords:

When you open an account, your broker will prepare your electronic file. Your life will be accessible to you only. You will be given a password.

When you will be able to fill in the account opening for electronically, you yourself will set the password. But it your product a hard copy to your broker who will key-in your data for you, the password will be set by the brokerage house staff.

We strongly recommend you to change your password immediately and from time to time for better security.

Remember, if you give your password willingly or unwillingly, he or she can place order and nobody but yourself will be liable for all those transactions.

Deposits with your brokers and your trade limit:

Make sure that you and your broker have signed the safe beeping agreement. Once you have the safe beeping agreement you can deposit shares and money to your broker. According to your deposit, the broker will set limit to your trade.

Additional trading system of DSE:

-Odd lot trading mechanism

-Auction session trading

-Sport order trading

-Bulk order trading

-Big lot order trading

Odd Lot Trading Mechanism

Odd lot orders can be entered as limited orders with the order quantity always not multiple of market lot for that scrip. These orders would be matched with their counter orders if the quantities match and prices allow for a match to take place.

Each odd lot order would have the following elements:

 Scrip code

 Quantity

 Price

 Buy or sell Indicator

 Retention (GTC/GFD)

 Client ID (Optional)

Odd lot orders can be entered for any scrip in the system. Odd lot would be similar to the normal order in a given mode of trading. Only limit orders are permitted with a special odd lot indicator with the order. The priority employed for matching these orders would again be the price in that order.

Auction Session trading:

Auctions will be orders entered by the Stock Exchange. There will be a separate Auction session for entering these orders. Before the start of the auction session, Stock Exchange is supposed to have entered all its auction orders.

Following rules will apply for the auction orders:-

These orders will give the following details:

 Buy/Sell type

 Scrupled

 Quantity

 Standard Rate

 Settlement no.

Auction session can be of two types viz.

Open auction

Close auction.

This parameter can be set by the Stock Exchange. In open auction session the solicitor brokers can view other solicitor orders in the market. In Close auction the solicitor brokers cannot view other solicitor orders in the market. Thus, the solicitor brokers are allowed to remove or modify their orders in close auction.

1 The Stock Exchange will decide whether the auction is of ‘Buy’ or ‘Sell’ type i.e. whether the Stock Exchange puts Buy Orders or Sell Orders. This is also a parameter that can be set by the Exchange.

2 Stock Exchange enters details like Scrip, Auction Order Quantity, Standard Rate, Broker Code for whom auction order is being entered and Defaulter Broker Code.

3 A cumulative auction quantity and standard rate in each of the scrip will be broadcasted to all the brokers when the auction session begins.

4 During the auction session the traders can only the opposite orders (solicitor orders) for the auction orders entered by the stock exchange.

5 A Broker who is a defaulter for any order entered by the Stock Exchange will not be allowed to place solicitor orders in that scrip.

6 The Stock exchange will specify a standard rate for each of the scrip when putting the auction order.

7 The system will then the matched solicitor orders as auction traders to the concerned traders.

8 The auction orders entered by the Stock Exchange cannot be modified to delete once the auction session has started.

9 The auction trades currently are not taken into account for updating the positions of the traders and brokers.

10 All unmatched solicitor orders are removed from the system at the end of the auction session.

11 At the end of the auction matching, a delivery list will be generated which will give a report on the deliveries to be made between brokers, along with the traded value. If total quantity of auction orders is not exhausted, then the balance quantity will be auctioned at a close-out rate which will be calculated as follows-

12 If any action trade have taken place in the scrip, then

Close out rate = (Weighted Average of Auction Trade price X Close out%) 100.

Else Close out rate = (Standard rate X Close-out %) 100.

Spot Order trading

Spot Orders are normal orders for which delivery has to take place on the same day. The scrip in which spot trading is to be allowed is decided by the Stock Exchange.

1 A spot order is traded against another spot order only.

2 Priority of spot order depends on its price and time.

3 A trader can submit multiple spot orders in the same scrip.

4 Spot Orders can be modified or removed before they are traded. On modification, the spot order looses its time priority.

5 The Spot BBO is formed of spot orders only and is shown separately.

Bulk Order Trading

1 Bulk orders are essentially limit orders used for trading in larger quantities. They are also referred to as block deals.

2 Bulk orders will be accepted in the continuous trading session only. The duration of these orders would be same as that existing for limit orders.

3 * Bulk orders will not be considered for BBO formation and closing price calculation.

4 All other conditions of client code, tick price, filter limited etc. are applicable for bulk orders similar to the ones applied for normal orders.

5 Bulk orders entered by the broker/trader will be broadcast to all the BWS’s. The trader can view the bulk orders and place the appropriate opposite order.

Big Lot Orders trading:

This type of orders is almost similar to the Bulk Orders, Except that the Multiplying factor will be a global system parameter, set to a value of 2 by default. All other rules pertaining to bulk order trading apply here also.

Circuit Breakers in trading:

Circuit breakers are checks enforced by the system to verify that the volatility in the market is controlled. Circuit breakers are cheeked at matching stage or at order entry stage. The time at which circuit breakers have to be checked can be specified by the Stock Exchange as a parameter.

Presently, the following rules govern the Circuit Breaker percentage value or Absolute Circuit Breaker value-

Sl.No.

Previous day’ s per share Market Price

Limits

1. 2.

Up to Tk. 200Tk. 201 to Tk. 500

Tk. 501 to Tk. 1,000

Tk. 1,001 to Tk. 2,000

Tk. 2,001 to Tk. 5,000

Tk. 5,001 and above

22% but not exceeding Tk. 3518. 5% but not exceeding Tk. 75

15% but not exceeding Tk. 125

12.5% but not exceeding Tk. 200

10% but not exceeding Tk. 375

7.5% but not exceeding Tk. 600

1 In case of new issue, free trade may be allowed for first 5 (five) consecutive market days and after that, above limits will be applicable.

2 In case of receipt of any price sensitive information like declaration of dividend, bonus/right issue, expansion or joint venture news etc. from the listed company, free trade may be allowed for subsequent 3 (three) market days, and after that, above limits will be applicable.

3 The SEC from time to time in order to ensure orderly markets and also to address the practical aspects may review the above guidelines.

4 Share prices are controlled by the trading system automatically according to the above guidelines.

Algorithm of DSE Indices

Index Calculation Algorithm (according to IOSCO Index Methodology):

Yesterday’s Closing Index X Current M.Cap

Current Index = —————————————————————–

Opening M.Cap

Yesterday’s Closing Index X Closing M.Cap

Closing Index = ———————————————————————-

Opening M.Cap

Current M.Cap = ∑ ( LTP X Total no. of indexed shares )

Closing M.Cap = ∑ ( CP X Total no. of indexed shares )

There are three indices in the DSE as follows:

Sl.No	Index Name	Base Index	Remarks
1	DSI (all shares)	350 (as on 01-11-1993)
2	DGEN(A, B, G & N)	817.63704 (as on 24-11-2001)	SEC directive regarding index was on 17-11-2001
3	DS20	1000 (as on 01-01-2001)

Abbreviations and Acronyms

M.Cap – Market Capitalization

DSE – Dhaka Stock Exchange

IOSCO – International Organization of Securities Exchange Commissions (IOSCO)

LTP – Last Traded Price

CP – Closing Price

Highest value: 4204.06746

Lowest value: 2001.87987

Index Graph of Last 1 Year from 22-01-2009 to 2010-01-22

Highest value: 5095.21004

Lowest value: 2408.67157

Index Graph of Last 1 Year from 22-01-2009 to 2010-01-22

Highest value: 2824.92014

Lowest value: 1841.74494

22-01-2009

DSE Performance from February 2005 to January 2010

Index Movement for a Year

Value and Quantity of Turnover of DSE January 2010

Movement of DSE Market Cap & Issued Cap

Market Performance January 2010

Chapter-5

Current Trading issues of DSE

For smooth trading operation, DSE has installed modern server into the existing:

-CDS (Central Depository System)

-NGTS (Next Generation Trading System)

Central Depository System:

CDBL was incorporated as public limited company on 20 August 2000 to operate and maintain the CDS. Shares have been exchanged between sellers and buyers just like other commodities since the starting of stock exchanges. The old tradition of exchange of shares has been with physical certificates. The transfer of ownership of shares between sellers and buyers has therefore been affected through a process of executing transfer agreements between sellers (transferors) and buyers (transferees), verification of seller’s bona fide ownership of the shares with the companies, and then followed by payments and lastly cancellation of seller’s certificates by companies and issuance of new certificates to buyers. That is to say, for a shareholder to sell his shares, he must possess a physical share certificate issued to his by the company.

The global stifling of trade in Stock Exchanges created a worldwide concern over the necessity to invent newer ways of security transaction to ensure the development and the enhancement of capital markets. As a result, a group of economic and financial experts and intelligentsia, known as the G-30 came up with a historic recommendation of setting up a central depository to facilitate the settlement of stock trades through the method of Electronic Book Entry Transfer. Its aim was to eliminate the risk and problems caused by the cumbersome process of physical transaction of shares.

Based on their recommendation central securities depositories were set up in various countries all around the world including most of our neighboring countries like India, Pakistan, and Srilanka in private sectors.

The new automated Screen-based trading system in Dhaka stock exchange is replaced by saying good-by to the traditional cry-out system. Unlike other automation project, this is not just computerization of the trading floor with the typical data itself. Leading Stock Exchange who had already automated the transaction operation of their trading floor are gradually moving towards this relatively new technology of screen based trading. Dhaka stock exchange has accomplished this trading system from their own resources.

The following are the main impact of Dhaka stock exchange’s automated trading system.

Transparency

By introducing automated trading system, transparency has been ensured. At present, every thing is going on manually. No manipulation is possible by this system. This system ensures easy and quick communications between traders and the investors.

Trading time increased

In the traditional Cry-out system, scripts were traded one at a time. Although, trading lasted for a few hours, practically one scrip gets only a few minutes to be dealt in. The main facilities offered by automation, are placing of orders both on-line and off-line. Brokers workstation-located in their office premises-allow investors to trade each and every scrip through out the business hour.

Direct participation by the investors

At present, the investors can directly participate in stock trading which was not possible under the traditional system. In Cry-out system, an investor place buy-order or sell-order to his/her broker or dealer and the said broker/dealer would attend in the trading floor in the Dhaka stock exchange. But now, the investors go the Broker’s office and sitting there, they can observe the trading through BWS module system of the computer. They are able to react instantly according to the movement of the market by modifying their orders, placing new orders or withdrawing the existing orders under the new automated trading system. Thus, it can be said that, ‘It is the market for the investors, not for the Brokers.’

Trading from various area

The wide area network of Dhaka stock exchange that virtually links the entire Bangladesh through the normal phone system, also promise a wide participation of the investing public. Not only that, with an efficient network, the oversees investors can now access the market which is very important for the Bangladesh market as the huge number of the citizens are living abroad and willing to invest in this country.

Reduction of Fake Share Transaction:

Due to Starting of automatic trading system, fake share transaction has almost been minimized whereas; it was a common issue in the Cry-out system. In that traditional system, there was an existence of curb market. Investor’s buy/sell in those curbs market to avoid commissions payable to the market. As a result, much fake share would have been transacted. After commencing operation through screen based trading system, existence of curb-market has been abolished and transaction of fake-share has been reduced. Under this new system, Authorized Assistant of each member deposit/receive the securities to/from the clearing and settlement department of the Dhaka stock exchange. The investors make no handling of shares or securities directly.

Proper monitoring

Proper monitoring is possible under the automatic trading system; proper monitoring is possible through surveillance software module. At Dhaka stock exchange, surveillance department monitors the overall trade situation by using this computer system. Also, it had a terminal installed at Securities and Exchange Commissions (SEC) for the inspectors to keep the vigil. When deals are executed through super fast machines, it is bit difficult for human being to do the monitoring at the similar pace.

Ongoing Human Resource Development

Stock Exchange activities are very specialized in nature and as such, human resource in this area is scarce in this country. Keeping this in view, Dhaka stock exchange has given priority to the development of its human resources. A Term of Dhaka stock exchange participated in the Asian Securities and Investment Automation Congress (ASIAC) ’97 held on 28-30^th May 1997 in Kuala Lumpur, Malaysia. Another term of executives spent two weeks with CMC & some Stock Exchange in India to undergo OJC (On the Job Trading) on automated trade.

Restoring Investors’ faith

All members agree that the automated trading system gives the investors the assurance that, they are getting their dues and that the brokers will not be able to play with their money. This feeling is gradually restoring investors’ confidence.

It is really a matter of great pride and Pleasure that, Dhaka Stock Exchange became the Stock Exchange among as many as 31 bourses on the Sub-continent to have automation facility. By introducing new developed system, transparency has been ensured and investor’s confidence will definitely lead to the return of the investor, which has probably begun to happen already. At that situation, a huge amount of the capital will be formed in the country, share price of listed company will go up, total GDP will increase and ultimately the whole economy of the country will be benefited. Thereafter, we can say that, automation has a great impact on the overall economy of the country.

Central Depository

According to the Bank of International Settlements, A Depository defined as: “A facility for holding securities, which enables securities transactions to be processed by book entry. Physical securities can be immobilized by the depository or securities may be dematerialized (so that they exist only as electronic records).”

Simply stated, a Central Depository can be compared to a bank. A central depository holds shares of shareholders in book entry form. Thus it acts like a bank of shares, by depositing share certificates into a central depository, the delivery of shares in settlement of a transfer of shares executed between a seller and buyer can be easily achieved with change of records in the central depository instead of physically exchanging certificates, as has been the case till now.

Importance of depository :

The need for a depository arose from shortcomings in the present settlement system, resulting in:

1 Lengthy delays in delivery, settlement and transfer of securities;

2 Tedious procedures for verification of securities and transfer deeds;

3 Considerable time involved in dispatching cash dividends and bonus shares;

4 Risk of damaged, lost. Forged and duplicate securities;

5 Serious problems associated with physical custody;

6 Tedious procedure involved in pledging of physical securities to raise capital

CDBL A Supporting Organ of Automated Trading System:

Central Depository Bangladesh Limited (CDBL) was incorporated as a public limited company to operate and maintain the Central Depository System (CDS) of Electronic Book Entry, recording and maintaining securities accounts and registering transfer of securities, changing the ownership without any physical movement or endorsement of certificates and execution of transfer instrument, as well as various other investor services including facilitation of the secondary market trading of Treasury Bills and Government Bonds issues by the Bangladesh Bank. The Register of Joint Stock Companies (RJC) issued the certificate of incorporation and certification of business commencement to CDBL on 20 August 2000. The Authorized and Paid-up-Capital as Tk 500 million and Tk 300 million respectively with the value of each share is fixed at Tk. 01 million.

The objective of establishing CDBL is to provide CDS to add momentum to the growth and acceleration of our capital market. Problems such as fake, forged or lost shares, long settlement cycle, operational inefficiencies of manual clearing and settlement system, hassles of shares registration, transfer and certificate validation are still prevailed in the market and due to them, the investors felt disinclined to stake their money in such a volatile and shaky atmosphere. Under such circumstances, the Depository Act 1999 enabled and motivated the companies in private sector with joint collaboration from the government to set up a securities depository company.

Address

Central Depository Bangladesh Limited (CDBL)

BSRS Bhaban (18^th floor)

12 Kawran Bazar

Dhaka – 1215 Bangladesh

Tel: – 88 02-913 7906, 88 021-913 8024

88 02-913 8039, 88 021- 913 7928

Fax: – 88 02-812 4630

E-mail:- cdble@bol-online.com

Owners

The Depository Regulations, 2000 requires that the sponsors of any depository are:

1 A financial institution

2 A bank

3 A sock exchange

4 A body corporate established or formed under any law

5 A company listed with any stock exchange or

6 Any other national or international institution specified by the DSE

Accordingly the stakeholders of CDBL, numbering over 70 institutions, are –

1 Nationalized Commercial Banks

2 Private Commercial Banks

3 Foreign Commercial Banks

4 Insurance Companies

5 Dhaka Stock Exchange

6 Dhaka Etock exchange

7 Investment Corporation of Bangladesh

8 Listed Companies and

Depository Participant

One can open securities account through a DP and start dematerializing his securities into his account and / or start trading in the electronic mode. The balances in his account are maintained with the depository and are available through the DP. His DP will intimate him the status of his holdings or transactions from time to time.

Participants:

The following types of organizations may become CDBL participants

1 Stock brokers/dealers (members of the DSE and DSE);

2 Banks;

3 Financial institutions;

4 Insurance companies;

5 A statutory organization;

6 Merchant bankers;

7 Asset managers;

8 Custodians; and

9 Any other capital market intermediary registered with the SEC.

Participants are divided into the following categories:

The issuer: – An entity that puts a financial asset in the market place.

Exchange DP: – Provides service to brokers for settlement purposes.

Trading participant:-Stock brokers/dealers (Stock Exchange member) who can operate their own account (principal account) and clearing account.

Full service participant: – Participants who can operate their own account, clearing account and the accounts of investors.

Custody participant: – Participants who can operate their own account, clearing account of stock brokers/dealers, custody account of their customers but it is not a stock exchange member.

Settlement agent participant: – Participant who can operate clearing accounts on behalf of stock brokers/dealers for the settlement of stock exchange transaction.

CDBL services:

CDBL mainly concerning on the following points:

1 BO account opening.

2 BO ISIN inquiring & maintenance

3 Dematerialization

4 Settlement

5 Transfer

6 Transmission

7 Dematerializes

Benefits of CDBL

An Investor can avail many benefits if the Investor buy and sell in the depository mode.

 Some of the benefits in general:

1 No bad deliveries.

2 Reduced paper work.

3 No risk of loss, mutilation or theft of share certificates.

4 Fast settlement cycles.

5 No stamp duty for transfer of shares.

6 Low transaction cost for buying and selling in the dematerialized segment.

7 Low Interest rates on loans granted against pledge of dematerialized securities by banks.

8 Pay – in and pay – out of securities on the same day.

9 Increase in the liquidity of Investors securities because of faster transfer and registration of securities in his/her account.

10 Instant disbursement of non – cash corporate action benefits like bonus and rights into Investors account.

11 Elimination of vault charges.

 Benefits to Investors

 Pledging is difficult and time consuming

High risk of forgeries

Storage problem

Costly share transfer

Odd market for Odd lot transaction

 Benefits to listed companies:

Printing of share certificates

Cost of stamp duties

Mailing operation to shareholders

Hassle of wrong delivered mails

Voluminous work during book closure

Continuous checking and authentication of scrip

Signature verification

Signature of directors

Distribution of dividend

Drawbacks of CDBL

Central Depository Bangladesh Limited (CDBL) is very new in our country. It had been started its operation with only one scrip since 24 January 2004. Earlier we knew about benefits of Central Depository System working out by CDBL. The study found some drawbacks of CDBL –

 Increase in transaction cost

 Risk of stop trading

 Slow dematerialization rate

 Incomplete clearing system

If we consider the above findings, we will find that through Central Depository System (CDS), CDBL is going to provide a bundle of services and information to its Beneficial Owners viz. investors, brokers, issuers, stock exchanges, banks and regulatory authority (SEC).

The system of Electronic Book Entry Transfer (BET) adopted by CDS basically replaces the physical shares and enables paper-less trading. The paperless or scrip-less trading will provide a number of benefits to the beneficial owners by eliminating the problems and hassles normally associated with paper based trading that is prevailing at present trading. There are a lot of problems such as fake, forged and lost shares, long settlement process, operational inefficiencies of manual clearing and settlement system, troubles and hassles of shares registration, transfer and certificate authentication etc are prevailing in the market at present. As a result, the investors felt hesitate to invest their money in present situation.

CDS that is provided by CDBL will remove these problems and create a favorable environment through electronic share trading system. CDBL will be accountable for its operation to the regulatory authority; Security and Exchange Commission (SEC).

Besides the different facilities, CDBL has some shortcomings, which might create obstacles in its smooth and efficient operation. By overcoming those drawbacks, CDBL will be able to ensure the Accuracy, Speed and Transparency for the benefits of all concerned. This will obviously have a good impact on the capital market of Bangladesh. Moreover, for improving the situation of the capital market of Bangladesh CDBL will be an advanced step that will add momentum to the growth and pace of our capital market.

NGTS (Next Generation Trading System):

DSE is a forward-looking bourse of the country. Among the major steps and plans, DSE has taken various initiatives to meet the present challenges. For smooth trading operation DSE is now under process of introduce NGTS (Next Generation Trading System) into the existing engine to facilitate Equity market.

Chapter-6

Trading order and Settlement system of DSE

Clearing and Settlement system

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 378 Instruments in Five (5) groups in the Four (4) markets.

A Group:

Number of Instruments are 164 (142 + 8D + 14M), 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 18 (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 1 (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 14 (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 97(Trading in Public, Block & Odd-lot Market with trade for trade settlement facility through DSE Clearing House on T+1, T+7 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 DSE 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 DSE 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: