... Topic: Bond Market In Bangladesh . Course Code :FIN-361. Course Title :Corporate Finance . Submitted To : MD.Nazmul Hasan. Faculty, School of Business, University of Information Technology & Sciences Submitted By : NAME ID Nazibur Rahman : 08410105 Abdullah- al Zihad : 08510061 Qazi Ismat Ahmed Rushe’d Chowdhery : 08410106 Date of Submission : 14th December, 2010. Executive Summary The bond market is a financial market where participants buy and sell debt securities, usually in the form of bonds. Like emerging-market countries around the world, Bangladesh could benefit from having a local-currency, fixed-income securities market. At present, its main fixed-income financial products are bank deposits, bank loans, government savings certificates, term loans, treasury bills, and government bonds and corporate debt (syndicated loans, private placement, and debentures). But in general the corporate debt market is still very small compared with the equity market. Numerous factors in Bangladesh today suggest that Bangladesh will not be able to develop an active, local-currency fixed-income market. In this paper, we will discuss the current situation of our bond market, what the drawbacks are and what may be the remedy for overcoming these drawbacks. Bangladesh's bond market represents the...
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...Limited Bangladesh Capital Market Brief History of Capital Market: * Concepts started in USA at Wall Street in 1653. * It came to South Asia in 1890. * The origin of Stock Market in Bangladesh goes back to 28th April 1954 named East Pakistan Stock Exchange association at Narayangonj. Later it was s renamed East Pakistan Stock Exchange Ltd and Trading was started in 1956. History of Bangladesh Capital Market: * East Pakistan Stock Exchange transferred in Dhaka in 1958. * In 1964 it was renamed as Dhaka Stock Exchange Ltd. * In 1976 Dhaka Stock Exchange Ltd started its operation with a bit different version. * Securities & Exchange Commission (SEC) was established in 1994 to enhance the efficiency of country’s capital market. * A big wing of Bangladesh capital market, Chittagong Stock Exchange (CSE) incorporated in 1995. Our Capital Market Products: * Shares * Debentures * Mutual Funds * Bonds * Derivates * Future & Options Capital Market Players: * Investors * Private Limited Company * Stock Exchange (DSE & CSE) * Brokers & Dealers * Merchant Banks * Securities and Exchange Commission (SEC) * Central Depository Bangladesh Limited (CDBL) Bangladesh Capital Market: Capital market is the market for securities, where companies and governments can raise long term funds. It is a market where money is lent for periods longer than a year. Capital market includes the stock market &...
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...Bangladesh Capital Markets • Capital markets continue strong performance o Subprime crisis has left little impact on Bangladesh markets o Market capitalization is above US$20bn in 2009 from US$10bn in 2007 o Average daily turnover is approximately US$75mm in 2009 from US$24mm in 2007 Opportunities and Challenges • Key opportunities for future growth o Institutionalization of market brings greater liquidity and lower volatility o Attracting large corporates for listing provides investors with viable investment options • Challenges ahead o Retail dominated market resulting in higher volatility from speculation o Large, well reputed companies prefer to source funds from traditional bank finance against capital markets Bangladesh Economic Outlook • Remittance inflow has been resilient to global turmoil o Bangladeshis abroad sent home US$887.9mm in September’09 • Inflation continues to decline o Fell to 6.04% in July’09, from 6.66% in June’09 and 8.90% in December’08 • GDP growth forecast has been revised downwards to 5.88%, compared to 6.19% in the previous fiscal year • Exports have been relatively sheltered due to low cost nature of Bangladeshi products o Recovery in the US and Europe, the major buyers, expected to boost export earnings Key Commentary • Local market has been relatively sheltered from the recent global meltdown in 2008 o Market was volatile in early 2009 but has stabilized with high turnover and market capitalization...
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...[pic] RESEARCH PROJECT BOND MARKET OF BANGLADESH Prapared for : Mohammad shahidul Islam Assistant professor Director, MBA Program UITS, Chittagong Prepared by : A. M. Shahed Chowdhury Batch No. 27 ID No. 09435020 SOB, RMBA, UITS Chittagong Date of Submission: 21-01-2011 Institution: University of Information Technology& Sciences BOND MARKET OF BANGLADESH [pic] University of Information Technology & Sciences School of Business Mohammad shahidul Islam Assistant professor Director, MBA Program January 21, 2011 Dear sir I Submit herewith a report of research program entitled ‘‘Bond Market of Bangladesh’’ prepared under your direction. As promised in my proposal, this report includes information on the Bond Market. Thanking you. Acknowledgment Mohammad shahidul Islam Assistant professor Director, MBA Program Dear Sir On behalf of the Research Project, I would like to thank you and rest of the university for the excellent cooperation you gave me. I especially appreciate the high quality of your guidance and thorough professional way of your work. I also thank you for...
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...development of trade and commerce depends on the bank sector. So, it is the fair arms to have well improved bank sector for the economic development of the country. In this sense, debit card plays important role for the safely carry and transferring money from one place to another. we concisely enjoy how much they are benefited due to the debit card introduction in Rajshahi city. Not only trade and commerce, we can observe the change of personal life due to the debit card users in Rajshahi. Now it is the age of modern technology. In this age debit card is being used highly as a medium of technology. Debit card is keeping active role in transferring money from are corner to another of Bangladesh. It is the contribution of the bank sector to keep balance development between urban and rural area of Bangladesh. Long-term maximizing profit through customer satisfaction is the main objective of the marketing. To achieve those objectives, it is urgent to eliminate or meet the need of the customer. More over to satisfy the customer, it is essential to have updated information regarding a customer. Due to the debit cards service, it has been possible to know the updated information regarding a customer through the maintaining customer data base. From the above discussion, I mean we are able to present how much my study is significant for the city. I mean in the present situation...
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...Building a Newsletter App in PHP with Dreamweaver CS3 E-mail newsletters are a very popular method of maintaining an open channel of communication with your site visitors. They have the great benefit of keeping a site’s current user base up-to-date on the latest news and offerings from the organization. Moreover, they have the potential for turning site visitors into site customers or donators. In this article, you’ll learn how to create a complete subscribe/unsubscribe application in PHP/MySQL with a standard Dreamweaver CS3 server and just one additional block of code. To use this application, a user signs up for a subscription on a site and receives a confirmation e-mail. The e-mail contains a link to unsubscribe, personalized for the user. In all, you’ll need to create five pages to achieve this functionality: * Subscribe.php: This page is comprised of a basic form that gathers an e-mail address and inserts a new record into the MySQL database. After the record is inserted the page is redirected to confirm_subscribe.php. * Confirm_subscribe.php: While the visitor sees a bit of text confirming his or her subscription on this page, a PHP function contained within e-mails the user a secondary confirmation, which contains a link to unsubscribe via the confirm_unsubscribe.php page. * Error_subscribe.php: This is an error page that displays if the e-mail attempt was not successful; it also contains a link to the subscribe.php page so another attempt can be made. ...
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...Lecturer, Department of Accounting Victoria Govt. College, Comilla Dear Sir, Here is the term paper on “A Study on Capital Market in Bangladesh”. I have worked on the various aspects on this matter. I am very grateful to you for giving me this exposure, for achieving tremendous real life experience during the work. I put the best of my performance on it. I gratefully thank you for the part of your experience, knowledge and views you shared with me and outside the class room. I pray and hope that you would be kind enough to accept the report and obliged there by. Sincerely, Md. Shah Paran Roll: 8100 Program: BBA Department of Accounting Victoria Govt. College, Comilla STUDENT DECLARATION I do hereby declare that the presented Term Paper titled A Study on Capital Market in Bangladesh is prepared by me. I also declare that it has not been previously submitted for any other degree of diploma or certificate to any University and Institution. I further undertake to indemnify the University against any loss or damage arising from of breach of copyright and/or above declaration. Md. Shah Paran Roll: 8100 Program: BBA Department of Accounting Victoria Government College Comilla CERTIFICATE This is to certify that the report entitled A Study on Capital Market in Bangladesh Is the record of Term Paper done by Md. Shah Paran in partial fulfilment of the requirements of the degree of Bachelor of...
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...Make capital market barometer of industrialisation: DCCI Dhaka Chamber of Commerce and Industry (DCCI) Tuesday said the country witnessed a massive industrialization process but the present crisis in the capital market is hindering the growth of industrialization, reports BSS. “The capital market should be established keeping consistence with industrialization and productivity so the capital market is considered as a barometer of industrialization,” DCCI president Asif Ibrahim told a Meet The Press in the DCCI conference room in the city. Reading out a written statement on ‘Activities of DCCI for Development of Trade and Commerce’, Ibrahim said the capital market could not have been unstable if the supply of shares was increased with the increase in investors last year. DCCI Senior Vice-president TIM Nurul Kabir and directors Niaz Rahim, Engineer Mosharraf, Anwarul Hakim, Osman Gani and Khairul Majid Mahmud were present, among others, on the occasion. Ibrahim sought *support from regulators in the capital market to keep small investors unhurt in the greater interest of the country’s economy. He informed that the trade body has formed a strategy committee comprising representatives of the government and private sector to implement the recommendations made in the conference titled ‘Bangladesh 2030: Strategy for Growth’ on Dec 7 last year. The DCCI had identified a number of growth diverse including 14 billion US dollar Readymade Garment (RMG) industry, 10 billion US dollar...
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...Capital market in Bangladesh: Concept and formation Capital market is a mechanism to flow fund from the hands of small savers (individuals and institutions) at low costs to those entrepreneurs who do need fund to start business or to business. In the other words, capital market mechanism gives a part ownership of big companies/corporations to small savers like you and me. In simple term, it is a globally accepted scheme to share ownership of economic development with general public. History of capital market: Capital market started in USA at Wall Street in 1653. 1t came to Mumbai, the commercial capital of India around 1890. However, investment in shares boomed in late 1970s. It took many years to come to the land, now comprising Bangladesh. The origin of stock market in Bangladesh goes back to April 28, 1954 when a stock exchange was formed under the name East Pakistan Stock Exchange Association at Narayanganj. Trading started in 1956. It was renamed East Pakistan Stock Exchange Ltd. Transferred to Dhaka in 1958 and again renamed Dhaka Stock Exchange Ltd in 1964. Trading remained suspended during the Liberation War in 1971. The Dhaka Stock Exchange resumed operation in 1976 with nine listed companies as against 452 today. Capital market in Bangladesh got momentum with the establishment of Securities and Exchange Commission in 1994. A big wing was added to the capital market with the incorporation of Chittagong Stock Exchange on April 1, 1995. Operation of CSE started on...
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...Monetary Policy and Capital Market Development in Bangladesh Policy Note: PN 0708 Shubhasish Barua* and Md. Habibour Rahman* Abstract Bangladesh Bank (BB) adjusted its monetary policy stance during 2005 in order to contain inflationary pressures and facilitate stability in the foreign exchange market. At the end of 2005, interest rates on NSD certificates were also adjusted upward. The latter development, however, raised some concern among different economic agents regarding its possible impact on the country's capital market. In this paper we attempt to closely inspect the evolvement of monetary policy and capital market indicators in recent years and their possible interrelationship to shed some light on the issue. Since prices of stocks are mainly determined by company fundamentals, monetary policy can have only short term effect on stock prices. Even in the short run, effect of interest rates on stock prices is less clear-cut, and in a less developed capital market like Bangladesh, stock prices do tend to respond, for short term, to new reform measures and government incentives. 1. Introduction Bangladesh Bank (BB) adjusted its monetary policy stance during 2005 in order to contain inflationary pressures and facilitate stability in the foreign exchange market. At the end of 2005, interest rates on NSD certificates (government borrowing instruments from the non-bank public) were also adjusted upward. The latter development, however, raised some concern among different...
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...“The Performance Of Capital Market And Its Impact On The Economy Of Bangladesh.” (Based On Recent Unstable Capital Market Situation.) Assignment on # Macro-Economices (Course Code: FIN-2209) 14th February, 2011 ►Prepared by, Anik Ahmed BBA, 3rd Batch, Department Of Finance Jagannath University, Dhaka. Capital Market Overview A capital market is a market for securities (debt or equity), where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year. The capital market includes the stock market (equity securities) and the bond market (debt). Financial regulators, such as the Bangladesh Bank (BB), and Securities and Exchange Commission (SEC), oversee the capital markets in their designated jurisdictions to ensure that investors are protected against fraud, among other duties. Capital Market Primary Market Secondary Market In primary markets, new stock or bond issues are sold to investors via a mechanism known as underwriting. In secondary markets, existing securities are sold and bought among investors or traders, usually on a securities exchange, over-the-counter, or elsewhere. In Bangladesh there are two capital markets in our country. One is Dhaka Stock Exchange (DSE), and another is Chittagong Stock Exchange (CSE). History of capital market in Bangladesh: The Dhaka Stock Exchange (DSE) was setup on 28th April, 1954 that started formal...
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...A Term Paper On “The Role of Capital Market on The Economic Development of Bangladesh” GOVT. SUHRAWARDY COLLEGE, PIROJPUR Department of Accounting Term Paper On “The Role of Capital Market on The Economic Development of Bangladesh” Submitted To: Md. Faruk Hosain Assistant Professor Department of Accounting Govt. Suhrawardy College, Pirojpur Submitted By: Alamgir Hossain Roll No- 9792874 Reg. No-1727384 Session-2010-2011 BBA (Hons) 4th Year Department of Accounting Govt. Suhrawardy College, Pirojpur Date of Submission: February 12, 2014 Letter of Transmittal Date : Md. Faruk Hosain Assistant Professor Govt. Suhrawardy College, Pirojpur Subject: Submission of Term Paper on “The role of capital market on the economic development of Bangladesh”. Sir, As a part of BBA program a term paper is enclosed herewith. The report was prepared on “The role of capital market on the economic development of Bangladesh.” In the course of preparation the report, I tried with the best of my capacity to accommodate as much information and relevant issues as possible and tried to follow the instructions as you have suggested. In the time of preparation the report, relevant documents, data, information were studied and practical knowledge had been gathered. I tried my best to make this report as much informative as possible. I sincerely believe that it will satisfy your requirements. I however sincerely believe that this report will serve the purpose of my term paper...
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...IPO Pricing of NESTLE Global for the Capital Market of Bangladesh: IPO pricing of Nestle Global for the Capital Market of Bangladesh [For the partial fulfillment of B.B.A. program in Finance] Submitted to Department of Finance University of Dhaka Supervised by Shakila Halim Lecturer Department of Finance University of Dhaka Submitted by Md. Sohebur Rahman Roll: 17-055 Sec: A B.B.A.17th Batch Department of Finance University of Dhaka Date: 7th May, 2015 Letter of Transmittal 07th May, 2015 Chairman Exam Committee B.B.A. 17th batch Department of Finance University of Dhaka Subject: Submission of Internship Report on “IPO pricing of Nestle Global for the capital market of Bangladesh” Sir, I hereby, want to express my sincere gratification to submit my internship report on “IPO pricing of Nestle Global for the capital market of Bangladesh” Through the preparation of the report, I got an opportunity to apply my knowledge of B.B.A. program and to be acquainted with the practical field. I have given all the efforts to make this report a purpose serving one. I hope that you will appreciate my efforts and accept the submission of my report. Sincerely yours, Md. Sohebur Rahman Roll: 17-055 Sec: A B.B.A 17th Batch Department of Finance University of Dhaka Acknowledgement At the very beginning, I would like to express my sincere gratitude to Almighty Allah, who has given me the chance to complete my internship report in a very...
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...1 Introduction: Bangladesh capital market is one of the smallest in Asia but the third largest in the south Asia region. It has two full-fledged automated stock exchanges namely Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) and an over-the counter exchange operated by CSE. It also consists of a dedicated regulator, the Securities and Exchange Commission (SEC),since, it implements rules and regulations, monitors their implications to operate and develop the capital market. It consists of Central Depository Bangladesh Limited (CDBL), the only Central Depository in Bangladesh that provides facilities for the settlement of transactions of dematerialized securities in CSE and DSE. 2.1 Functions of capital market: The functioning of an efficient capital market may ensure smooth floatation of funds from the savers to the investors. When banking system cannot meet up the total need for funds to the market economy, capital market stands up to supplement. To put it in a single sentence, we can therefore say that the increased need for funds in the business sector has created an immense need for an effective and efficient capital market. It facilitates an efficient transfer of resources from savers to investors and becomes conduits for channeling investment funds from investors to borrowers. T 2.2 Product of capital market: • Shares, • Debentures, • Mutual funds, • Bonds, • Derivatives, • Future and options. 2.3 Player...
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...Executive Summary ‘Capital market is largest and oldest trading organization in Bangladesh, with years of experience. Adaptation of modern technology both in terms of equipment and trading practice ensures efficient service to clients. Capital market serves both clients and country and it strive to be the acknowledged global leader and preferred partner in helping our countries succeed in the worlds rapidly evolving financial market. This report is basically the analysis of capital market’s inner strengths and the inside forces that affect the organization. The organization has full power over these forces and can use them effectively. There are, of course, many different forces that work within an organization, and we have explained a few of them in the following passages to illustrate the condition of capital market. In this report we find out the history of this market. That means what is the background of this market, trading process, present condition, and future opportunity of this organization from the perspective of information. The main purpose of the study is to compare the theoretical knowledge with practical scenario and at the same time get an in-depth knowledge about capital market and its policies. In order to serve this purpose the following Main Discussion History of Bangladesh Capital Market: The first concept capital market was come from USA at Wall Street in 1653. It came to South Asia in 1890. The origin of Stock Market in Bangladesh was 28th April1954 named...
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