The Securities and Exchange Commission (SEC) recently allowed the companies to start electronic settlement of share trading. The companies are-- Dhaka Bank Ltd, Southeast Bank Ltd, Pragati Insurance Company Ltd and Pioneer Insurance Company Ltd.

With the four, the number of companies joining the CDS will rise to eight. Square Pharmaceuticals Ltd was first company to adopt the electronic trade settlement system on January 24.

Though Square Pharmaceuticals witnessed poor response in initial stages, the company overcame the dull trading after investors put their confidence in the system, which helped the company to hit the top trading list within a month.

Inspired by the responses from investors and market players, the capital market regulators took steps to consolidate the CDS by allowing more companies to join the paperless trading system.

Accordingly, three companies -- Industrial Development Leasing Company (IDLC) Bangladesh Ltd, Square Textile Mills Ltd and Sandhani Life Insurance Company Ltd --made their debut in the scripless trading on April 27.

Earlier, the SEC selected 13 companies for CDS and fixed May 2 for their joining of scripless trading but many of the companies opted for delaying the joining due to annual general meetings. This postponement forced the SEC to select Square Textile and Sandhani Life Insurance for the CDS. Sources said SEC will soon take fresh initiatives to start scripless trading of those selected companies.

The capital market watchdog has also primarily selected 43 A category companies and securities and asked them to get ready for the scripless trading.

Sources said SEC wants to ask all the 127 A category companies and securities to develop required infrastructure and sign agreements with Central Depository Bangladesh Ltd (CDBL), the service provider of CDS, in the run-up to joining CDS by year-end.