3. WHAT IS CAPITAL MARKET?
Capital markets are made up of debt and equity markets where buyers and sellers
engage in trade of financial securities like bonds, stocks, etc.
The buying/selling is undertaken by participants such as individuals and
institutions.
These markets fuel economic growth by allocating capital that can be used to
create jobs, build infrastructure and finance innovative ideas.
4.
5. SUB-MARKETS OF CAPITAL MARKET
Primary Market:
It is that market in which shares, debentures and other securities are sold for the first time for
collecting long-term capital.
This market is concerned with new issues. Therefore, the primary market is also called new
issue market.
Secondary Market:
The secondary market is that market in which the buying and selling of the previously issued
securities is done.
6. CAPITAL MARKET IN BANGLADESH
Bangladesh capital market is one of the smallest in Asia but one of the largest in
the SouthAsian 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.
The Dhaka Stock Exchange generally known as DSE is the first and main stock
exchange of Bangladesh.
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
7. 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 600
8. CATEGORIZATION OF LISTED
COMPANY
Grand Total: 600
Category DSE CSE
A 155 130
B 18 13
G 1 1
N 13 14
Z 98 72
Debenture (Acategory) 8 2
Treasury Bonds: 75 -
9. FUNCTION OF DSE
▶ Listing of Companies
▶ Providing the screen based automated trading of listed Securities
▶ Settlement of trading
▶ Granting approval to the transaction
▶ MarketAdministration & Control
▶ Market Surveillance.
▶ Publication of Monthly Review
▶ Monitoring the activities of listed companies
▶ Investor’s grievance Cell
▶ Investors Protection Fund
▶ Announcement of Price sensitive or other information about listed companies through
online.
10.
11.
12. PROBLEMS AND LIMITATIONS OF DSE
Price Manipulation
Delays of settlement
Irregular payment dividends
Selection of membership
Improper Financial Statement
Technical problems and political infighting
Lack of skilled manpower
The lack of proper policy
13. CONCLUSION
The lack of an advanced and vibrant capital market can lead to underutilization of
financial resources. The developed capital market also provides access to the foreign
capital for domestic industry. Thus capital market definitely plays a constructive role
in the overall development of an economy.
