Modern depository system for brokers

The Central Depository Bangladesh Limited (CDBL) is set to officially inaugurate a web-based system next week with the view to facilitating stockbrokers and investors.

With the software, general investors will instantly get transaction and balance reports authenticated by the CDBL, said Shuvra Kanti Choudhury, managing director of the CDBL.

In the old system, they had to give a requisition and wait a day for the reports.

The CDBL, which is a joint venture between banks, stock exchanges, Asian Development Bank and some other institutions, provides settlement and transfer of securities (share, mutual fund unit, etc) and a record of securities accounts and registers transfer of securities on the Dhaka and Chittagong stock exchanges. The software has been brought from the Tata Consultancy Services of India.

“Our task has shrunk due to the new software,” said Mostaque Ahmed Sadeque, president of DSE Brokers' Association.

“Now, we do not have to come in early in the morning to download the data and do not have to save the file. We get all the data anytime from the CDBL,” he added.

Moreover, a depository participant can now easily operate with any computer by using the CDBL's private network.

Previously, they could not use any other computer for settlement if the computer recognised by the CDBL crashed or malfunctioned. The new software has heightened security as it has two factor authentication.

In the prior software, the CDBL had to go to all the DPs' offices if it wanted to bring in any changes in the system. Now, the CDBL can bring in any development centrally.

“We brought the new software to keep pace with the growing market. Trade is soaring day by day and the market will see new products in future. So, we wanted a modern system in place,” Choudhury said.