Bangladesh Securities and Exchange Commission (BSEC) has approved the introduction of scrip netting, also known as intraday trading, in the country’s stock market. The decision was made at a commission meeting chaired by BSEC Chairman Masud Khan on Tuesday, according to a statement signed by Executive Director and Spokesperson Abul Kalam. The Dhaka and Chittagong stock exchanges have been authorized to implement the system once all necessary preparations are complete. The new mechanism will allow investors to buy and sell shares of the same company within a single day and settle only the net position at the end of the trading day.

BSEC earlier indicated that the facility would initially be limited to high-quality companies, possibly around 30, due to concerns about investor maturity and the limited number of strong securities. DSE Brokers Association President Saiful Islam said scrip netting is a globally recognized practice but has not been implemented in Bangladesh due to fears of misuse. He suggested starting with the DS-30 companies as a pilot phase.

Islam added that the Dhaka Stock Exchange is technically ready but may need software upgrades. He also noted that full implementation across all listed companies would require the operational readiness of Central Counter Party Bangladesh Limited (CCBL), which has yet to begin activities since its launch in 2019.