There will also be no spot transaction on November 7 and 11, while regular trades of November 11 will be settled on the next working day
Clearing and settlement activities at the Dhaka Stock Exchange (DSE) will remain closed on November 11 as its banker, the City Bank Limited, will halt their banking services for a technology upgradation.
A press release of the Bangladesh Securities and Exchange Commission (BSEC) on Wednesday said it granted the DSE's application to defer the clearing and settlements of trades to take place on that day.
The securities regulator also said there will be no spot market trade of securities listed with the premier bourse on November 7 and 11. But record dates scheduled to identify securities owners will not change. And, the post record date of trading will also be in regular platform.
In spot trades, the nominated broker of a buyer is bound to pay the price to the broker of a seller on the same day through the clearing and settlement wing of the stock exchange. The selling broker also has to hand over securities through electronic platform on the same day.
The deferred clearing and settlements will be accomplished on the next working days, BSEC said in the press release.
In such cases, the exchanges previously used to shut trading activities. But trades are scheduled to run with a plan to defer the settlement and clearing this time for market liquidity.
Trades that take place at the regular electronic platform of the stock exchange are settled within two working days. It means sellers of securities get their money and buyers get the securities at their beneficiary owner accounts with the help of the brokers within two working days.
The cycle is lengthy if the traded share is a 'Z' category one.
Companies failing to arrange annual general meeting of shareholders or paying any dividend or not in operation for more than six months are placed in the 'Z' category until they fix the issues.
As the separate clearing and settlement corporation is yet to start functioning, the exchanges are still performing the task to clear transactions among stock brokers.