Submitted To:
Chandon Kumar Pal
Lecturer,
Dept. of Finance and Banking.
Jatiya Kabi Kazi Nazrul Islam University.
Submitted By:
Group Name: Finnos
Group List: 2nd
Session: 2015-2016
Dept. of Finance & Banking
Jatiya Kabi Kazi Nazrul Islam University
Sincerely
Group no. 02
Id: 16132613, 50, 51, 49 & 32.
Name of the Group Member:
History:
First incorporated as East Pakistan Stock Exchange Association Ltd on 28 April
1954 and started formal trading in 1956. It was renamed as East Pakistan Stock
Exchange Ltd on 23 June 1962. Again renamed as Dacca Stock Exchange Ltd on
13 May 1964. After the liberation war in 1971 the trading was discontinued for
five years. In 1976 trading restarted in Bangladesh, on 16 September 1986 DSE
was started. The formula for calculating DSE all share price index was changed
according to IFC on 1 November 1993. The automated trading was initiated on 10
August 1998 and started on 1 January 2001. A Central Securities Depository
System was initiated on 24 January 2004.
Logo of DSE:
Products of DSE:
Currently two types of Equity instruments are tradable at DSE -
Equity:
These are ordinary shares of listed companies. For a certain period from the IPO
date certain number of shares are not tradable. 3 years after listing all shares are
usually tradable unless there are right offerings. Directors portion of right shares
are not tradable for 1 year.
Mutual Funds:
These are units of one of the variants of listed collective investment schemes.
These funds are usually closed end mutual funds governed by the Securities and
Exchange Commission (Mutual Funds) Rules, 2000 and is backed by one
corporate sponsor and usually is named with the sponsors name.
Currently three types of Debt instruments are tradable at DSE.
Corporate Bonds:
There are corporate bonds issued by companies that may or may not be listed with
DSE. All current bond issuers are listed with DSE.
Treasury Bonds:
All treasury bonds issued by the Bangladesh Bank (Central Bank of Bangladesh)
are listed with DSE. The common maturities are 5, 10, 15 and 20 years.
Debentures:
These are unsecured debt instruments issued by listed companies. They carry both
variable and fixed interest rates. All currently listed debentures are matured and are
still listed due to some incomplete legal proceedings.
Management:
The management and operation of Dhaka Stock Exchange is entrusted on a 25
member’s board of directors. Among them 12 are elected from DSE members,
another 12 are selected from different trade bodies and relevant organisations. The
CEO is the 25th ex officio member of the board. The following organisations are
currently holding positions in DSE Board:
Bangladesh Bank
ICB – Investment Corporation of Bangladesh
President of Institute of Chartered Accountants of Bangladesh
President of Federation of Bangladesh Chambers of Commerce and Industries
President of Metropolitan Chambers of Commerce and Industries
President of Dhaka Chamber of Commerce & Industry.
Board of Directors:
Professor Dr. Abul Hashem
Chairman of DSE &
Vice Chancellor,
Anwer Khan Modern University (AKMU)
Legal Control:
The Dhaka Stock Exchange (DSE) is registered as a Public Limited Company and
its activities are regulated by its Articles of Association rules & regulations and by-
laws along with the Securities and Exchange Ordinance - 1969, Companies Act -
1994 & Securities & Exchange Commission Act - 1993.
Objectives:
Dhaka Stock Exchange shall endeavor to achieve the following objectives within
2020:
Commercial:
• Achieve a sustainable average daily turnover of BDT 25 billion.
• Ensure steady domestic and offshore institutional investments of at least
three fourth of the total investments in the market.
• Attract more foreign investments to attain a steady level of at least 30% of
the total market capitalization.
• Double the total number of listed securities (other than Government Bills
and Bonds).
• Increase depth and liquidity of bond market, including bringing in the
Government Securities under trading net.
Trading:
The Dhaka Stock Exchange is open for trading Sunday through Thursday between
10:30 am – 2:30 pm BST, with the exception of holidays declared by the Exchange
in advance. In the month of Ramadan, the exchange is open for trading between
10:00 am – 2:00 pm BST.
artificially to benefit a handful of players at the expense of the big players.
2010–11 crash:
The bullish market turned bearish during November 2010, with the exchange
losing 1,800 points between December 2010 and January 2011.[2] Millions of
investors have been rendered bankrupt as a result of the market crash. The crash is
believed to be caused artificially to benefit a handful of players at the expense of
the big players
The major functions:
1. Listing of Companies (As per Listing Regulations).
2. Providing the screen based automated trading of listed Securities.
3. Settlement of trading (As per Settlement of Transaction Regulations).
4. Gifting of share / granting approval to the transaction/transfer of share
outside the trading system of the exchange (As per Listing Regulations 47).
5. Market Administration & Control.
6. Market Surveillance.
7. Publication of Monthly Review.
8. Monitoring the activities of listed companies (As per Listing Regulations).
9. Investors grievance Cell (Disposal of complaint bye laws 1997).
10. Investors Protection Fund (As per investor protection fund Regulations
1999).
References:
1. Jump up to: "Recent Market Information". DSE. 4 September 2018.
2. Jump up to: "Probe panel finds massive manipulation at Bangla stock
market". India Times. 7 April 2011. Retrieved 18 October 2011.
3. https://en.wikipedia.org/wiki/Dhaka_Stock_Exchange.
4. https://www.google.com/search?q=logo+of+dse&sourceid=chrome&i
e=UTF-8.
5. https://www.google.com/search?ei=AJthXIXROY63rQGwn6yIBQ&q
=head+office+of+dse&oq=head+office+of+dse&gs_l=psy-
ab.3...34596.41841..42568...0.0..0.475.3084.0j10j3j1j1......0....1..gws-
wiz.......0i71j0i7i30j0i8i7i30j0i7i5i30j0i7i10i30j0i30j33i10.jIpQE99G
rg4.
&
6. Applied our own experiences.