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Appraisal of Chittagong

Stock Exchange

PRACTICE A SET OF CORE VALUES TO BUILD COMPETENCY


IN COMPLIANCE, DIVERSIFICATION AND TECHNOLOGY SO
THAT AN ACCESSIBLE PLATFORM, MARKET CONFIDENCE
AND WEALTH MAXIMIZATION SCOPE CAN BE ENSURED.

Introduction
The

Chittagong Stock Exchange (CSE) start its


journey in 10th October of 1995 .
CSE
consists of 70 members representing
profession, trade, commerce and industry of
Chittagong.
It is managed by a Board of Directors, comprising
of 12 elected directors and 6 directors to be
nominated by the Commission.
CSE has a policymaking Body of 24 members, of
whom 12 are elected and 12 are non-elected.

Overview Of CSE
CSE was formally opened by then Hon'ble Prime
Minister of Bangladesh on November 4, 1995.

Value for people


Transparency
Excellence
Harmony
Commitment
Integrity

Vision
Developing a strong capital market in the
country.
It gives its best efforts to develop a balanced
and vibrant capital market through empowering
the other market participants and the investors.
Aspire a global standard transaction place of
securities and financial product.

Objectives
Develop a strong platform for entrepreneurs raising
capital.
Develop a professional service culture through
mandatory corporate membership.
Increase business turnover
Modernize trading system
Ensure effective relationship management
Achieve high level of confidence & professionalism
Engage in product and market diversification
Contribute to capital market policy development
Ensure exchange related quality services

Responsibilities of Chittagong
Stock Exchange
Establishing listing requirements.
Approval, suspension or removal of listing
privileges of companies.
monitoring listed companies in compliance with
legal regulatory provisions
Permission of dual listing.
Providing the screen based automated trading
of listed Securities.

Trading Systems in Chittagong


Stock Exchange (CSE)
Automated Trading System: Trading has now
become automated, led by the Chittagong
Stock Exchange through the central depository.
Internet Trading Services (ITS): CSE is not
only the pioneer of establishment of nationwide
trading mechanism. CSE introduced internet
Based Trading in May 2004 to enable the
remote investors to have trading facilities from
home and abroad directly.

Trading Systems in Chittagong


Stock Exchange (cont.)
Mobile Trading Services: Mobile trading is a
milestone for the capital market of Bangladesh.
Like many other initiative, CSE has again
played a pioneer role in introducing mobile
trading in Bangladesh.
Over-the Counter Market (OTC):
Favorable issue cost for entrepreneurs
Enhanced visibility through national exposure

Challenges for CSE


Service at door steps of stock exchange will
enhance the participation of small investors in
the stock market.
CSE has only 4 branches and it has failed to
open new branches in different cities in
Bangladesh.
IPO has always been oversubscribed in
Bangladesh. It indicates that the number of
enlisted securities is not adequate in CSE.

Challenges for CSE (cont.)


Some stock exchange members also serve as
directors of listed companies. This can lead to
the chance of insider trading and conflict of
interest. Insider trading cause wide fluctuations
in the prices of the securities and undermines
the trust of the stock market.
No serious attempt has been taken for making
the people of semi-urban & rural areas of
Bangladesh interested to invest in stock
market.

Recommendations
To ensure service at door steps & to increase
the participation of small investors, CSE may
take necessary to open new branches in all the
districts of Bangladesh.
Thorough publicity, Chittagong Stock Exchange
(CSE) can encourage & promote the investors
of semi-urban & rural areas of Bangladesh to
invest in the stock market
Government should promulgate macroeconomic policy such as fixation of interest on
treasury securities considering the interest of
stock market of the country.

Conclusion