The Securities and Exchange Commission (SEC) at a meeting yesterday gave nod to Islami Bank Bangladesh, Pubali Bank, City Bank, Midas Financing, Rangpur Foundry and Shinepukur Holdings.

With the six new companies, the number of companies joining the CDS rose to 54, including four initial public offerings that automatically adopt the system.

As shareholders go slow in converting papers shares into electronic ones, required for electronic trade settlement, the capital market watchdog at the meeting also issued a deadline of six months for conversion of the shares.

To facilitate transition from the paper-based shares and manual settlement to scripless trading and electronic settlement for the new companies, the SEC directed stock exchanges to conduct spot trading on March 19 and suspend trading during March 20-22.

The electronic trade settlement system, which eliminates risk of fake, soiled or lost shares, made its debut in the capital market on January 24 last year with the shares of Square Pharmaceuticals Ltd.

Listed companies will no longer need to maintain full-fledged share department in office as the system operator will do all the depository and transfer jobs.

Analysts view last year's introduction of CDS as a major technological development in the country's capital market history after adoption of automated trading system in 1998.