...CHITTAGONG STOCK EXCHANGE: BACKGROUND : “Founder members of the proposed Chittagong Stock Exchange approached the Bangladesh Government in January 1995 and obtained the permission of the Securities and Exchange Commission on February 12, 1995 for establishing the country's second stock exchange. The Exchange comprised of twelve Board members, presided by Mr. Amir Khosru Mahmud Chowdhury (MP) and run by an independent secretariat from the very first day of its inception. CSE was formally opened by then Hon'ble Prime Minister of Bangladesh on November 4, 1995.” MISSION: The mission of the CSE is “to create on effective, efficient and transparent market of international standard to save and invest in Bangladesh in order to facilitate the competent entrepreneur to raise capital and accelerate industrial growth for overall benefit of the economy.” The Chittagong Stock Exchange believes that a dynamic, automated, transparent stock exchange is needed in Bangladesh. It works towards an effective, efficient and transparent market of international standard to serve and invest in Bangladesh in order to facilitate the competent entrepreneurs to raise capital and accelerate industrial growth for overall benefit of the economy and keep pace with the global advancements. VISION: The visions of CSE are as follows: a) To develop a strong platform for raising capital b) To provide an investment opportunities for the investor c) To develop a corporate culture through...
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...Introduction: The stock market of Bangladesh is considered to be one of the emerging markets in the context of the global financial system. The market has immense potentials for country’s industrialization, development of infrastructure in particular and economic growth in general. The government and the Securities and Exchange Commission (SEC) have undertaken a good number of initiatives to meet Bangladesh's development financing requirements with a particular focus on developing long term infrastructure financing and strengthening financial stability through promotion of capital market. In this regard formulation of a Master Plan is of crucial importance. Stock markets or Stock exchanges play an important role in the modern capitalized economy by providing the strength to nation's economic infrastructure. Now the stock market is one of the most important sources for companies to raise capital. Stock market allows businesses to raise additional capital for expansion by transferring the ownership of the company. It provides individuals the opportunity to invest in corporations. The size of the world stock market was estimated at about $36.6 trillion at the beginning of October 2008. In Bangladesh, there are two stock exchanges, the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE), DSE was setup on April 28, 1954 that started formal trading in 1956. In 1995, CSE was setup. However, in its fifty-eight year’s history the stock market of Bangladesh crashed two times...
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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 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 & the...
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...ADMINISTRATION & ECONOMICS Identifying the Critical Issues of Stock Market: A Study on Dhaka Stock Exchange (DSE) Md. Moniruzzaman Sarker1*, Nusrat Nargis2* 1 2 Senior Lecturer, School of Business & Economics, United International University, Bangladesh. Senior Lecturer, Department of Business Administration, Daffodil International University, Bangladesh. *Corresponding author’s email: mrajib.sarker@gmail.com, mishu_fin@yahoo.com Article History Received: 19-05-2012 Accepted: 13-06-2012 Available online: 31-07-2012 ABSTRACT Bangladeshi Stock Market has experienced a big crash twice from its inception. In 1996, the market was crashed because of speculative bubble whereas; it was an asset bubble in the year 2011. The stock price was overvalued this time. Price was inflated about 500-700 percent compare to the face value. DGEN Index climbed at point 8918.51 on December 05, 2010 which signaled a steeper bubble. Our study postulates the present scenario of Bangladesh Stock Market through various quantitative and qualitative data which are extracted from the secondary sources. Quantitative data are gathered from the web site of Dhaka Stock Exchange and other qualitative data are collected from published research journals, newspapers, websites etc. This study has revealed that, Gap between the Demand and Supply of stock, extraordinary over pricing of stock, market manipulation, lack of knowledge about the stock market mechanism among the general investors, price distortion...
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...An overview of Bangladesh Capital Market: Fraudulent Practice An overview of Bangladesh Capital Market: Fraudulent Practice Prepared for Barrister M. Zillur Rahman Lecturer, Legal Environment of Business Institute of Business Administration (IBA) University of Dhaka Prepared by Ashraful Islam Dipankar Ghosh Roll: 18 Roll: 36 MBA 45E INSTITUTE OF BUSINESS ADMINISTRATION University of Dhaka Date: January 07, 2012 i An overview of Bangladesh Capital Market: Fraudulent Practice January 07, 2012 Barrister M. Zillur Rahman Lecturer Institute of Business Administration University of Dhaka Dear Sir: Subject: Submission of the term paper “An overview of Bangladesh Capital Market: Fraudulent Practice.” We are pleased to present you our term paper “An overview of Bangladesh Capital Market: Fraudulent Practice.” We have extensively enjoyed working on this topic. It has been a very interesting and informative experience for us. While working on this report we have learnt about capital market in Bangladesh. Due to the fraudulence practice in Bangladesh capital market several people has suffered a great loss. We believe this through study on the capital market of Bangladesh will help us immensely in our future life when we will involved more with our capital market. We hope our effort will meet the level of your expectations. Your guidelines and advice have been very effective and helped us a lot to complete our report. In case of any further query, please feel...
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...perspectives Dhaka Stock Exchange is the first Stock Exchange in Bangladesh. It was established by the East Pakistan in 1954.It is located at Motijeel in Dhaka. Now Bangladesh has two stock exchanges one is DSE that is Dhaka stock exchange and another is CSE that is Chittagung stock exchange.DSE and CSE is playing a vital role in stock exchange business. It has been putting a great contribution in national economy of the country. The educated people of the country is investing their money in the stock exchange market rather than saving in the banking institutions. So people of the country are getting a smooth benefit from share market. Because of that they are investing their money in the stock exchange market. From this report we got that most of the people knows something about the share market and they are doing this business earnestly. 1.INTRODUCTION Dhaka Stock Exchange (Generally known as DSE) is the main stock exchange of Bangladesh. It is located in Motijheel at the heart of the Dhaka city. It was incorporated in 1954. Dhaka stock exchange is the first stock exchange of the country. A 24 members council is managed and operated the function of DSE. Among 24 members, 12 are chosen DSE members and the remaining 12 are chosen from the following position: Bangladesh Bank Commerce Ministry Finance Ministry Law Ministry Industries ministry President of Institute of Chartered Accounts of Bangladesh President...
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...The role of Financial Market and Institution in the Economic Development of Bangladesh Financial market Financial market is created to satisfy particular preferences of market participants.Financial markets transfer funds from those who have excess funs to those who needfunds. That is they facilitate the transfer of funds from surplus unit to deficit unit .Because funding needs vary among deficit units, various financial markets have beenestablished. The primary market allows for the issuance of new securities, while thesecondary market allows for the sale of short term securities, while capital marketsfacilitate the sale of long term securities.The main participants of financial market can be classified as households, businesses andgovernment agencies. Those participants who provide funds to the financial markets arecalled surplus unit . Households are the main type of surplus unit. Participants who usefinancial markets to obtain the funds are called the deficit unit . Money market: Money market an integral part of the financial market of a country. It provides a mediumfor the redistribution of short term loan able funds among financial institutions, which perform this function by selling deposits of various types, certificate of deposits anddiscounting of bills, treasury bills etc. The participants in the money market are: thecentral bank, commercial banks, the government, finance companies, contractual savinginstitutions like the pension funds, insurance companies...
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........ Department of Accounting, Gachhbaria Govt. College, Chittagong. Subject: Submission of Term Paper Dear Sir, We are very pleased to submit the term paper on “Chittagong Stock Exchange; An Evaluation of the Operation, Problems and Prospects”. We were assigned to prepare and submit this term paper as the partial fulfillment of the course entitled BBA. We have tried our best to prepare this term paper perfectly. Nevertheless, this paper has been suffered by time and cost limitation. We will be obliged, if you kindly accept this term paper. We are ready to make you clear regarding any confusion or further clarification from this term paper. Yours Sincerely ..................................... PARUL AKTER BBA (Hons) 2nd year Roll: 8095336 Reg: 2112555 Class Roll: 1164 Session: 2011-2012 Department of Accounting, Gachhbaria Govt. College, Chittagong. Acknowledgement This is a great privilege for us to finish the report in due time. During the preparation of this report we have received generous help from many individual’s which we would like to mention with our deepest gratitude. First of all, we like to thank ..........................., Lecturer of Accounting Department for granting us this great opportunity to work on this subject, “Chittagong Stock Exchange; An Evaluation of the Operation, Problems and Prospects”. We have earned a lot of experiences while preparing the report and also learned. The entire development of the study has conducted...
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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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...TAXATION IN BANGLADESH FISCAL ENVIRONMENT OF STOCK MARKET IN BANGLADESH FISCAL ENVIRONMENT OF STOCK MARKET IN BANGLADESH The share market in a country is the engine of raising capital, which accelerates industrialization and the process of privatization. Share market means the share and stock markets of the country. It is a market for long term fund. With the emergence of the need for infrastructural development projects, for setting up of new industries for entrepreneurial attempts-now there are more frequent needs of funds. Participants in the share market are many. They include the commercial banks, saving and loan associations, credit unions, mutual saving banks, finance houses, finance companies, merchant bankers, discount houses, venture capital companies, leasing companies, investment banks & companies, investment clubs, pension funds, stock exchanges, security companies, underwriters, portfolio-managers, and insurance companies. The main market participants are: ▪ Investors ▪ Brokers ▪ Dealers ▪ Underwriter ▪ Investment Banks ▪ Merchant Banks Structure of the Share Market in Bangladesh Bangladesh capital market is one of the smallest in Asia but within the south Asian region. It is the third largest one. It has two full full-fledged Automated Stock Exchanges: Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE) and an OTC exchange operated...
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...Stock market crash of Bangladesh in 2010-11: Reasons & roles of regulators Sangit Saha Degree Thesis Förnamn Efternamn International Business 2012 DEGREE THESIS Arcada Degree Programme: International Business Identification number: Author: Title: 11497 Sangit Saha Stock market crash of Bangladesh in 2010-11: Reasons & roles of regulators Andreas Stenius Supervisor (Arcada): Commissioned by: Abstract: The aim of the thesis is to determine reasons of the stock market crash in Bangladesh in 2010-11 and roles of the regulators and government since the crash took place. The theoretical background of the study includes brief introduction of Bangladesh stock market with its structure and different regulatory and intermediary organizations. It also describes one international stock market crash and stock market crash of Bangladesh in 1996. For the theoretical part investigation report of Khondkar Ibrahim Khaled is used as the main secondary resource. The report helps to get background of the crash with reasons and role of different regulatory and intermediary organizations. Self-administered questionnaire is used to obtain primary data for the study. The author sent 25 questionnaires to employees of broker houses and general investors but 18 replied. The result of the Self-administered questionnaire helped author to find some other reason behind the stock market crash in addition with reasons provided in the investigation report. Moreover...
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...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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...Dhaka stock is the main stock exchange on Bangladesh. It is situated in Motijhil, Dhaka. Dhaka stock exchange is the first stock exchange of Bangladesh. As of 18 August 2010, the Dhaka Stock Exchange had over 750 listed companies with a combined market capitalization of $50.28 billion. Formation: Dhaka stock exchange is formed 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 can participate in the floor and can buy shares for himself or his clients. At present it has 238 members. Market capitalization of the Dhaka Stock Exchange reached nearly $9 billion in September 2007 and $27.4 billion on Dec 9, 2009. Management Dhaka Stock Exchange is entrusted on a 25 member’s board of directors. Among them 12 are selected from DSE members, another 12 are selected from different trade bodies and relevant organization. The CEO is the 25th member of the board. The following organizations are currently holding positions in DSE Board: ▪ Bangladesh Bank ▪ ICB ▪ President of Institute of Chartered Accountants of Bangladesh ▪ President of Federation of Bangladesh Chambers of Commerce and Industries ▪ President of Metropolitan Chambers of Commerce...
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...Executive Summary Over the last few years, the capital market of Bangladesh has witnessed a haughty growth which is not in line of development in the real sector of the economy. Although, the Securities and Exchange Commission (SEC) of Bangladesh has tried to correct the irregular behavior observed in the market, very often it is argued that lack of proper and firm decisions from the regulator’s side has contributed to make the market more unstable rather than to reduce it. The paper attempts to identify the inter relationship between the capital market and money market. The Capital Market of Bangladesh is passing tough times since December 2010 as high volatility is eroding the capital of Thousands of Investors that might turn into social instability. This fall is caused by many factors that I tried to identify and tried to link up between causal factors of market crash and regulatory failure and also tried to find out the inter-relationship between capital market and money market. Primary issue related problems was faulty listing methods and IPO overpricing, few numbers of new listings, revaluating assets before company listing, high premium in issuance of right share/Repeat IPO etc. while secondary market related problems was stock splits and stock price manipulations through block trading, circular trading and insider trading. Investor’s greed and irrational behavior played a big rule to make the stock prices sky rocking as they were crazy to buy shares without judging...
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