The Dhaka Stock Exchange (DSE) has proposed allowing stock trading on record dates, aiming to end the longstanding practice of suspending trading on those days. In a letter sent to the Bangladesh Securities and Exchange Commission (BSEC) in mid-August, the DSE requested amendments to the Depository (User) Regulations 2003 and the Settlement of Transactions Regulations 2013 to facilitate this change.

Currently, in Bangladesh, trading of a company’s shares is suspended on the record date—the cutoff date for determining eligible shareholders for corporate actions such as dividends, rights, or participation in AGMs/EGMs. This suspension, according to DSE officials, disrupts market continuity and reduces overall turnover.

Under the proposed plan, trading would remain active on record dates with T+1 spot settlement, where sellers—not buyers—would be entitled to the corporate benefits. The Central Depository Bangladesh Ltd. (CDBL) has confirmed the technical feasibility of implementing T+1 pay-ins for such trades.

DSE Director Minhaz Mannan Emon said the move will modernize the capital market and align it with global practices. He noted that suspending trades on record dates causes liquidity issues and deprives investors of trading opportunities. “With 365 listed companies, we’re effectively losing 365 trading days annually if each company suspends trading once. That’s not sustainable in a market with only around 220–225 trading days a year,” he added.

The DSE’s proposal also recommends implementing a cum-benefit and ex-benefit framework, a centralized dividend/record date calendar, and introducing cash settlement mechanisms for shortages. Back-office and OMS vendors such as AdaSoft and Quant Fintech have expressed readiness to support the transition.

DBA President Saiful Islam supported the initiative, stating that ending record date suspensions would encourage greater investor activity and help expand the market, which has seen limited supply of quality shares in recent years.

If approved by the BSEC, the DSE believes these reforms will bring “transformative benefits” to the capital market and bring it closer to international standards.