The Bangladesh Securities and Exchange Commission (BSEC) has approved the introduction of “Scrip Netting”, also known as intraday trading, in the country’s stock market under the new Commission led by BSEC Chairman Masud Khan.
The decision was taken at the Commission’s 1,020th meeting on Tuesday, chaired by Masud Khan, and was later announced in a press release issued by BSEC spokesperson and Executive Director Abul Kalam.
According to the press release, the Commission has given consent to the stock exchanges to introduce Scrip Netting (intraday trading), subject to the necessary implementation arrangements. The move is aimed at making the trading system more dynamic, efficient and modern.
Once introduced, investors will be able to buy and sell shares of the same listed company multiple times within the same trading day.
Scrip Netting, also known as Day Netting, is a trading mechanism that allows investors to buy and sell shares on the same day.
Under the existing T+2 settlement system, investors must wait two business days for purchased shares to be credited to their Beneficiary Owner (BO) account before they can sell them. With the introduction of Scrip Netting, this waiting period will be eliminated, allowing investors to conduct intraday trading by buying and selling shares on the same trading day.