CDS glitch halts trade settlement in bourses
Star Business Report
Trade settlement through central depository system (CDS) in the bourses was disrupted yesterday due to a technical glitch in the server of the Central Depository Bangladesh Ltd (CDBL), the service provider of the electronic settlement system.Mohammad Habibus Samad, managing director and chief executive officer (CEO) of CDBL, told The Daily Star that database system failed to update information from 12 noon yesterday. "Technicians of CMC Ltd, Bombay, which supplied the system, are working and we hope to restore the system soon," he said. "Earlier such problems occurred many times in the system but those did not prolong like this one," the CEO added. Now, share settlement of 34 listed companies is held through the CDS and 80 depository participants are linked to CDBL server to conduct trade settlement electronically. A high official of Dhaka Stock Exchange said if such technical disruptions occur so often, it will affect the capital market. The electronic trading settlement system, which eliminates risk of fake or soiled shares, made its debut in the capital market on January 24 this year with the shares of Square Pharmaceuticals Ltd. Under the CDS, all paper-based share certificates are turned into electronic ones and transactions are held electronically. Latest
Securities and Exchange Commission (SEC) Executive Director Farhad Ahmed told The Daily Star at 10pm yesterday that the system had been restored.
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