...Review January-March 2008 Securities and Exchange Commission Bangladesh SECURITIES AND EXCHANGE COMMISSION Quarterly Review January - March 2008 A publication of the SEC Securities and Exchange Commission Jiban Bima Tower ( Floor 15, 16 & 20 ) 10, Dilkusha Commercial Area Dhaka-1000, Bangladesh Phone: 9568101-2, 9561525 Fax: (88)-02-9563721 Website: http//:www.secbd.org E-mail: secbd@bdmail.net Price: TK. 25.00 only SECURITIES AND EXCHANGE COMMISSION Quarterly Review January - March 2008 TOPIC 1. Capital Market News 2. Corporate Finance 3. Capital Issue Department C O N T E N T S 4 7 8 11 13 14 20 22 23 24 25 4. Supervision and Regulation of Markets and Intermediaries 5. Central Depository System Department 6. Registration Department 7. SEC Surveillance Department 8. SEC Enforcement Actions 9. Legal Services Department 10. DSE and CSE Scenario 11. Bangladesh Capital Market Summary CAPITAL MARKET NEWS Establishment of Securities and Exchange Commission (SEC) SEC was established in June 1993 through enactment of the Securities and Exchange Commission Act, 1993 as a regulator of capital market of Bangladesh. Missions of SEC ! Ensuring proper issuance of securities ! Protection of the interest of investors in securities; ! Development of the capital and securities markets; and ! Regulation of the capital and securities markets in Bangladesh. Market Performance Dhaka Stock Exchange: As on the end of January-March, 2008 period...
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...business expansion. Stock market is part & parcel of capital market. Contribution of any stock exchange generally leads to economic growth by increasing the funds to finance industry and other enterprise. Stock Exchange is an autonomous body formed by shareholders/members. It can take various decisions independently. The objective of Stock Exchange is to provide a market place along with facilities for bringing together the buyers and sellers of securities, promote just and equitable principles of trade, protect the interest of the investors. 1.2 Importance of the study Trading system is one of the most important functions of stock market operation. This report tries to find out the trading system of Dhaka stock exchange. Stock market is an essential part of capital market. Trading has now become automated, led by the Dhaka Stock Exchange through the central depository. In the present automated trading environment, bids/offers, depth, and required broker particulars are all recorded and can be retrieved for future reference. 1.3 Objectives of the study: The prime objective of the study is to study and evaluate the trading system of DSE. In this regard the specific relevant objectives of study are as follows: • To examine the trading system of DSE. • To know growth, development, organization and management of DSE. • To examine current issues of DSE. • To evaluate trading order and settlement system of DSE. • To identify the problems and prospects of DSE. 1.4: Methodology of...
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...expansion. Stock market is part & parcel of capital market. Contribution of any stock exchange generally leads to economic growth by increasing the funds to finance industry and other enterprise. Stock Exchange is an autonomous body formed by shareholders/members. It can take various decisions independently. The objective of Stock Exchange is to provide a market place along with facilities for bringing together the buyers and sellers of securities, promote just and equitable principles of trade, protect the interest of the investors. Definition of ‘Dhaka Stock Exchange – DSE’ The financial marketplace headquartered in Dhaka, Bangladesh. The Dhaka Stock Exchange was incorporated in 1954, and formal trading began in 1956. Originally, the exchange was called the East Pakistan Stock Exchange Association Ltd, and in 1962 the name was revised to East Pakistan Stock Exchange Ltd. Importance of the study: Trading system is one of the most important functions of stock market operation. This report tries to find out the trading system of Dhaka stock exchange. Stock market is an essential part of capital market. Trading has now become automated, led by the Dhaka Stock Exchange through the central depository. In the present automated trading environment, bids/offers, depth, and required broker particulars are all recorded and can be retrieved for future reference. Objectives of the study: The prime objective of the study is to study and evaluate the trading system of DSE. In this...
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...Stock Market in Bangladesh [pic][pic][pic][pic][pic][pic][pic][pic][pic] [pic] Dhaka Stock Exchange (DSE) dates back to 1952 when the local government deemed it necessary to establish a stock exchange because Pakistani shares and securities were prohibited from being bought or sold on the Calcutta Stock Exchange (CSE). Up until this point, Pakistan had been trading quite profitably on the CSE and had no need to establish their own stock exchange department. In response to the prohibition the Provincial Industrial Advisory Council made the decision to establish a stock exchange in Eastern Pakistan. Initially it was suggested that instead of creating an independent stock exchange, a branch of the Karachi Stock Exchange be opened at Dhaka. However this proposal was very unpopular with representatives from East Pakistan who felt that it was necessary to create a completely new stock exchange in Dhaka. This is what eventually happened with different members of the stock exchange purchasing membership cards at the price of RS.2000. There were two proposed locations for the stock exchange – Dhaka and Chittagong – but in the end it was decided that Dhaka was the most suitable location. An organizing committee was established to further set up the DSE and invitations were sent out to determine what sort of interest there would be in the proposed stock exchange. The response was overwhelming and on the 7th of July 1953 a meeting was held with roughly 100 interested persons attending...
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...Internship Report On Effectiveness of DSE Monitoring System SUBMITTED TO: Md. Rafiqul Islam Professor Department of Business Administration Faculty of Business & Economics Daffodil International University SUBMITTED BY: Md. Nasir Uddin ID: 072-11-2038 BBA Department of Business Administration Faculty of Business & Economics Daffodil International University Daffodil International University September 10, 2011 Internship Report On Effectiveness of DSE Monitoring System Date of Submission: 10 September, 2011 4/2, Sobhanbagh, Prince Plaza, Mirpur Road Dhanmondi, Dhaka-1207, Bangladesh LETTER OF TRANSMITTAL August 10, 2011 Md. Rafiqul Islam Professor Internship Supervisor Department of business administration Daffodil International University Subject: Submission of internship report. Dear Sir, This is my pleasure to present my internship report entitled “Effectiveness of DSE Monitoring System” Which was prepared from my experience in Dhaka Stock Exchange. With your kind supervision I believe that the knowledge and experience gathered...
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...Securities and Exchange Commission, Bangladesh ANNUAL REPORT 2010-2011 1 SECURITIES AND EXCHANGE COMMISSION ANNUAL REPORT 2010-2011 Jiban Bima Tower (15th , 16th & 20th Floor) 10, Dilkusha Commercial Area Dhaka-1000, Bangladesh Phone: 9568101-2, 9561525 Website: http://www.secbd.org E-mail: secbd@bdmail.net Fax: (88)-02-9563721 Securities and Exchange Commission 2 SECURITIES AND EXCHANGE COMMISSION ANNUAL REPORT 2009-2010 CONTENTS INSIDE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Chairman’s Statement Economic Indicators of Bangladesh Capital Market Over the World Bangladesh Capital Market Capital Market Regulatory Reforms and Compliance Listing in Stock Exchanges Capital Issue Corporate Finance Registration Mutual Fund and SPV Surveillance Supervision and Regulation of Markets and Issuer Companies Supervision and Regulation of Intermediaries Central Depository Enforcement Law Management Information Systems Research & Development Bangladesh Institute of Capital Market Future Planning Financial Statements of the Commission Annexure Commission and the Commission’s Officers PAGE 04 06 09 11 16 26 28 30 32 36 38 39 47 49 50 50 50 51 52 52 53 54 86 3 1. Chairman’s Statement Securities and Exchange Commission (SEC) was established on 8 June 1993 through enactment of the Securities and Exchange Commission Act, 1993. The objectives of the SEC are to develop the securities markets and to frame necessary rules and regulations of capital...
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...Securities and Exchange Commission Bangladesh CHAIRMAN’S STATEMENT The Securities and Exchange Commission (SEC) was established on June 8, 1993 under the Securities and Exchange Commission Act 1993 (Act 15 of 1993) as a capital market regulator with a view to ensuring proper issuance of securities, protection of the interest of investors in securities, development of the capital and securities markets, and regulation of the capital and securities markets in Bangladesh. The Commission consists of a chairman and four full time members who are employed by the government for a period of three years renewable for another similar term. The services of the chairman and members of the Commission are also determined by the government. The Chairman is the chief executive officer of the Commission. The country’s capital market witnessed a remarkable turn-around during the fiscal year 2008-2009. There were unmistakable signs of the resurgence of investor’s confidence which suffered a major jolt in the wake of the catastrophic crash of the stock market in 1996. Dhaka Stock Exchange’s (DSE) general index which was introduced on 27th November 2001 with a base of 818 points hardly moved in the following two years with the index increasing by merely five points to reach 823 on 30th June 2003. A significantly higher level was attained during the following year with the index rising to 1319 as of 30 June 2004. Parallely, Chittagong Stock Exchange’s index rose from 1841 as of 30th June 2003 to...
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...Securities and Exchange Commission, Bangladesh ANNUAL REPORT 2010-2011 1 SECURITIES AND EXCHANGE COMMISSION ANNUAL REPORT 2010-2011 Jiban Bima Tower (15th , 16th & 20th Floor) 10, Dilkusha Commercial Area Dhaka-1000, Bangladesh Phone: 9568101-2, 9561525 Website: http://www.secbd.org E-mail: secbd@bdmail.net Fax: (88)-02-9563721 Securities and Exchange Commission 2 SECURITIES AND EXCHANGE COMMISSION ANNUAL REPORT 2009-2010 CONTENTS INSIDE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Chairman’s Statement Economic Indicators of Bangladesh Capital Market Over the World Bangladesh Capital Market Capital Market Regulatory Reforms and Compliance Listing in Stock Exchanges Capital Issue Corporate Finance Registration Mutual Fund and SPV Surveillance Supervision and Regulation of Markets and Issuer Companies Supervision and Regulation of Intermediaries Central Depository Enforcement Law Management Information Systems Research & Development Bangladesh Institute of Capital Market Future Planning Financial Statements of the Commission Annexure Commission and the Commission’s Officers PAGE 04 06 09 11 16 26 28 30 32 36 38 39 47 49 50 50 50 51 52 52 53 54 86 3 1. Chairman’s Statement Securities and Exchange Commission (SEC) was established on 8 June 1993 through enactment of the Securities and Exchange Commission Act, 1993. The objectives of the SEC are to develop the securities markets and to frame necessary rules and regulations of capital...
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...incorporated as East Pakistan Stock Exchange Association Ltd in 28 April 1954 and started formal trading in 1956. It was renamed as East Pakistan Stock Exchange Ltd in 23 June 1962. Again renamed as Dacca Stock Exchange Ltd in 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 in 10 August 1998 and started on 1 January 2001. Central Depository System was initiated in 24 January 2004. As of November 16, 2009, the benchmark index of the Dhaka Stock Exchange (DSE) crossed 4000 points for the first time, setting another new high at 4148 points. In 2010, the index crossed 8500 points and finally crashed in the first quarter of 2011. Millions of investors lost their money and came out onto the street blaming the speculators and regulators for the bubble that finally burst. [edit]Formation Dhaka Stock Exchange (DSE) is a public limited company. It is formed and managed under Company Act 1994, Security and Exchange Commission Act 1993, Security and Exchange Commission Regulation 1994, and Security Exchange (Inside Trading) regulation 1994. The issued capital of this company is Tk. 500,000 which is divided up to 250 shares each pricing Tk. 2000. No individual or firm can buy more than one share. According to stock market rule only members...
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...Faculty East West University Department of Economics Prepared By: A.F.M.Ahsan Ullah Id No: 2007-1-10-015 Department of Business Administration Date of Submission: April 20, 2011 EAST WEST UNIVERSITY 1.0 Introduction: 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 bye-laws along with the Securities and Exchange Ordinance, 1969, Companies Act 1994 & Securities & Exchange Commission Act, 1993. 1.1 Background of Dhaka Stock Exchange: • • • • East Pakistan Stock Exchange Ltd was finally named as Dhaka Stock Exchange (DSE) on 14 May 1964. Although incorporated in 1954, formal trading started in 1956. Prior to independence in 1971, the number of listed companies in DSE was 196 with a total paid up capital of Tk. 4 billion. The total number of listed securities is now 378. 1.2 Role of Capital Market: The primary role of the capital market is to raise long-term funds for governments, banks, and corporations while providing a platform for the trading of securities. This fund rising is regulated by the performance of the stock and bond markets within the capital market. 1.3 Policies of Dhaka Stock Exchange (DSE): • • • DSE can introduce automate monitoring systems that may control price manipulation, malpractices and inside trading. It can make sure all the listed companies publish their annual reports with actual and proper information that can ensure...
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...Enclosure: 1. The report Acknowledgement In preparing report we thank the library manager of Dhaka Stock Exchange Mr. Attaur Rahman who supplied us with the “Monthly Review of DSE.”(A year end edition of 2003) and Library Manger of Security Exchange commission who assists us providing the information where we can collect required information. It was a great pleasure from our classmates from whom we received cordial guidance, suggestions for preparing this report specially our class representative who provided us information about the procedure in making this report. At last, we thank Officer-in-charge in Omar-Sultan Computer lab that provided us important tips in using various computer applications, software in preparing this report. We acknowledge the special assistance provided by Md. Masud Ahmed, System Engineer of ELB Cyber Cafe, Khilghon and Dhaka. Executive Summary In the report we have tried to show the application of the statistical tools upon the general index or all share index of DSE for the year 2003. To achieve the purpose, first of all we have collected the data for the year 2003. Then we have edited the data for the accuracy test. As we have collected the secondary data directly from the DSE the accuracy of the information is in a reasonable standard. Then we have tried to show the application of the statistical tools which are presented in the body part of the report in different chapters. Those chapters contain Presentation...
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...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 of capital market: • Investors, • PLCs, • Stock Exchange, • Broker & Dealers, • Merchant...
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...Bangladesh Economic Update Bangladesh Economic Update Capital Market Capital Market October 2011 October 2011 Bangladesh Economic Update Volume 2, No. 9, October 2011 Acknowledgement: Bangladesh Economic Update is an output of the Economic Policy Unit of the Unnayan Onneshan, a multidisciplinary research centre based in Dhaka, Bangladesh. The report is prepared by a team, under the guidance of Rashed Al Mahmud Titumir. The team comprises Md. Aslam Hossain and A. Z. M. Saleh. The report is an output of the programme titled Enhancing the responsiveness of the government to address exclusion and inequality. The programme has been supported from a grant of Christian Aid. © Copyright: Unnayan Onneshan-The Innovators The content of this publication may be reproduced for non-commercial purposes with proper citation (please send output to the address mentioned below). Any other form of reproduction, storage in a retrieval system or transmission by any means for commercial purposes, requires permission from the Unnayan Onneshan-The Innovators. For orders and request please contact: Unnayan Onneshan - The Innovators 16/2, Indira Road, Farmgate Dhaka-1215, Bangladesh Tell: + (880-2) 8158274, 9110636 Fax: + (880-2) 8159135 E-mail: info@unnayan.org Web: www.unnayan.org Bangladesh Economic Update, October 2011 2|P a g e SUMMARY This issue of Bangladesh Economic Update discusses the continuous fall in the capital market of Bangladesh. Continuous decrease in the capital market...
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...Course No. F 618 Course Title: Financial Markets and Institutions Assignment on “Reasons for Share Market Debacle in 1996 & 2010 and Recommendations for Improvement” Submitted to Dr. Jamal Uddin Ahmed Professor Department of Finance University of Dhaka Submitted by Tahasin Monabil Haq ID No. 21005 Table of contents Topics | Page | Acknowledgement | 3 | What is Stock Exchange? , Features of Stock Exchange | 4-5 | Stock Market in Bangladesh, Securities and Exchange Commission | 5-6 | Dhaka Stock Exchange (DSE)& Chittagong Stock Exchange (CSE) | 5-6 | Structure of Bangladesh Stock Market & Settlement | 6-7 | Stock market crash in 1996 | 7-8 | Reasons Behind the Stock market crash in 1996 | 8-9 | Stock market crash in 2010 | 09-12 | Reasons behind share market crash (2010) | 12-15 | Suggestions to improve the activities of Stock Market | 16-17 | Conclusion | 17 | References | 18 | | ACKNOWLEDGEMENT First of all I want to pay my gratitude to the Almighty Allah for helping me in preparing this paper successfully. Secondly, I want to express my gratefulness to our respective faculty, Dr. Jamal Uddin Ahmed, for providing us continuous support and guidelines to prepare a collaborative formal paper. His contribution to us can only be acknowledged but never be compensated. Furthermore, i want to convey my heartiest thanks to my friends and classmates especially who...
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...Dhaka Stock Exchange Chapter : 1 Introduction 1.1 Executive Summary After a great shock of the global financial crisis of 2008 stock markets across the world started rebounding. But the economy of Bangladesh was isolated from the world economy, it was not affected by world depression rather it maintains its growth.Now I make report on Dhaka Stock Exchange.Let me give a short brief on the report. The Dhaka Stock Exchange is the prime bourse of the country. Through its nonstop highly fault-tolerant screen based automated trading system, the exchange can offer facilities for transparent and highly efficient mechanism provisions for secondary market activities of shares, debentures and wide varieties of other securities. The Management of the Exchange is vested with the Board of Directors comprising 12 Members elected from the shareholders of DSE., 12 non-elected independent Directors representing different Institutions, Chambers and professional bodies and the CEO. The overall operations of the exchange is run by a team of qualified executives. The bourse at present offers trading facilities for 450 securities worth Tk. 2700.74 million which accounts for 41.44% of the GDP of the country. The Dhaka Stock Exchange is the rallying point for enterprises to raise capital in Bangladesh. With a nationwide coverage by 238 brokers and dealers, DSE espouses shared vision of Bangladeshi business all over. The exchange maintains the lead in providing a launching pad for mobilizing...
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