DHAKA STOCK EXCHANGE OVERVIEW: 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 management and operation of Dhaka Stock Exchange is entrusted on a 25 members board of directors. Among them 12 are elected from DSE members, another 12 are selected from different trade bodies and relevant organizations. The CEO is the 25th ex officio member of the board. The following organizations are currently holding positions in DSE Board:  Bangladesh Bank  ICB – Investment Corporation of Bangladesh  President of Institute of Chartered Accountants of Bangladesh  President of Federation of Bangladesh Chambers of Commerce and Industries  President of Metropolitan Chambers of Commerce and Industries  Professor of Finance Department of Dhaka University  President of Dhaka Chamber of Commerce & Industry. Currently, there are total 22 industrial sectors in DSE which accommodate 578 listed companies.

1. Assignment On
Overview of Capital Market in
Bangladesh
Submitted To:
Prof. Zahidul Islam
Course Instructor: Investment & Portfolio Management
Course Code: [FIN 403]
Submitted By:
Name: Fara Ul Fath
ID: 2215
Reg. No: 45971
Batch: 26th
Date of Submission:
26 February 2020

2. DHAKA STOCK EXCHANGE OVERVIEW:
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 management and operation of Dhaka Stock Exchange is entrusted on a 25 members board of
directors. Among them 12 are elected from DSE members, another 12 are selected from different trade
bodies and relevant organizations. The CEO is the 25th ex officio member of the board. The following
organizations are currently holding positions in DSE Board:
 Bangladesh Bank
 ICB – Investment Corporation of Bangladesh
 President of Institute of Chartered Accountants of Bangladesh
 President of Federation of Bangladesh Chambers of Commerce and Industries
 President of Metropolitan Chambers of Commerce and Industries
 Professor of Finance Department of Dhaka University
 President of Dhaka Chamber of Commerce & Industry.
Currently, there are total 22 industrial sectors in DSE which accommodate 578 listed companies.

3. Number Name of the Industry (DSEC) Quantity
1 Bank 30
2 Cement 7
3 Ceramics Sector 5
4 Corporate Bond 2
5 Debenture 8
6 Engineering 39
7 Financial Institutions 23
8 Food & Allied 17
9 Fuel & Power 19
10 Insurance 47
11 IT Sector 10
12 Jute 3
13 Miscellaneous 13
14 Mutual Funds 37
15 Paper & Printing 3
16 Pharmaceuticals & Chemicals 32
17 Services & Real Estate 4
18 Tannery Industries 6
19 Telecommunication 2
20 Textile 56
21 Travel & Leisure 5
22 Treasury Bond 221

4. Chittagong Stock Exchange
It is based in the port city Chittagong, Bangladesh, one of the twin financial hubs of the country. In, 1
April 1995 CSE incorporated as a company. Following that in 10 October Floor trading started in cry out
system. After that, in 4 November 1995 formally opened. In 30 May 2004 Internet based Trading system
opened and 8 July 2015 CSE launched new brand logo. Chittagong Stock Exchange
1 BANK
2 CEMENT
3 CERAMIC
4 ENERGY
5 ENG N ELECTRICAL
6 FOODS N ALLIED
7 GENERAL INSURANCE
8 ICT
9 LEASING N FINANCE15
10 LEATHR N FOOTWEAR
11 LIFE INSURANCE
12 MISCELLANEOUS
13 MUTUAL FUNDS
14 PAPERS N PRINTING
15 PHARMA N CHEMICAL
16 SERVICES N PROPERTY
17 TELECOMMUNICATION
18 TEXTILE N CLOTHING

5. Regulations of DSEC & CSEC :
The Bangladesh Securities and Exchange Commission (BSEC) is the regulator of the capital market of
Bangladesh, comprising Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). The
Commission is a statutory body and attached to the Ministry of Finance
Stock Exchange commission of Bangladesh have implied some strict regulations to control the stock
market and behavior of the firms. To exercise powers confined within the Securities and Exchange
ordinance act 1969 SECB has states regulations that are mandatory for the listed companies board and
administration. This regulation mainly includes how the nomenclature of the gazette will be defined, the
general requirement to constitute Board of Directors for a particular listed firm, How the listed firms
should structure their Board, Quorum of the Board Meeting, Proper criteria for fitting Directors, The
extent of power of the Board of Directors, Strategic planning for the exchange, Code of Conduct for
Board Directors, Code of Ethics, Management of the exchange, general principles for BOD, Audit and
Risk management, Appeal, conflict mitigation, TREC holding affairs etc.
Cash Reserve Ratio (CRR) is the share of a bank’s total deposit that is mandated by the Bangladesh Bank
to be maintained with the latter in the form of liquid cash whereas SLR (Statutory Liquidity Ratio) is the
ratio of compulsory ratio of the deposit that bank has to maintain in form of cash, gold, other securities
prescribe by Bangladesh Bank. CRR and SLR are the basic tools in the economy which manage inflation
and the flow of money in the country. Bangladesh bank controls bank capacity of lending through CRR
and SLR. In the Fiscal year FY19 the state-owned banks have suffered losses due to less liquidity stress
and wide access to public sector deposits. Bangladesh Bank hence address the issue of Taka liquidity
which includes lowering CRR from 6.50 to 5.50 percent of total time and demand liabilities. According to
Bangladesh Bank’s Fiscal Regulations the Statutory Liquidity Ration for scheduled banks were reported
to be 13 percent in December 2019.
Main Functions of the Securities and Exchange Commission
Regulating the business of the Stock Exchanges or any other securities market.
Registering and regulating the business of stock-brokers, sub-brokers, share transfer agents,
merchant bankers and managers of issues, trustee of trust deeds, registrar of an issue,
underwriters, portfolio managers, investment advisers and other intermediaries in the securities
market

6. Registering, monitoring and regulating of collective investment scheme including all forms of
mutual funds.
Monitoring and regulating all authorized self-regulatory organizations in the securities market.
Prohibiting fraudulent and unfair trade practices relating to securities trading in any securities
market.
Promoting investors’ education and providing training for intermediaries of the securities market.
Prohibiting insider trading in securities.
Regulating the substantial acquisition of shares and take-over of companies.
Undertaking investigation and inspection, inquiries and audit of any issuer or dealer of securities,
the Stock Exchanges and intermediaries and any self-regulatory organization in the securities
market.
Conducting research and publishing information.
Over-the-Counter (OTC)
What Is The OTC
Over The Counter (OTC) is a new facility of Chittagong Stock Exchange for the issuers, investors, capital
market and the nation at large, to assist in efficient capital formation by developing vibrant, dynamic and
self-regulated capital market. The OTC Market provides an alternative to stock exchange listing for
securities of issuers that either choose not to be listed on Dhaka Stock Exchange or not to meet the
relevant listing requirements. The term OTC Securities is a catch all phrases for any security that is not
listed on stock exchange
Dhaka Stock Exchange Ltd. provides Over-The-Counter (OTC) facilities for transaction of share of
companies as per SEC’s directive no. SEC/CMRRCD/2001-16 dated 06 September, 2009 transaction
procedure of which is followed by Securities and Exchange Commission (Over-the-Counter) Rules, 2001.
Benefits of Listing in the OTC
 Companies with small and medium paid-up capital get opportunity of trading their shares in
Stock Exchange
 Favorable issue cost for entrepreneurs
 Enhanced visibility through national exposure
o Improved investment opportunities for growth sector enterprises
o Zero percent interest finance for Entrepreneurs

7. o Provides a source of valuation of securities
Which Companies Are Eligible For OTC Facilities
Unlisted company
(A public limited company issued securities but not offered for public subscription is an unlisted
securities)
 If your company is a unlisted company and meets up the following criteria then it is eligible for
OTC facilities
 Paid-up capital at least taka Ten million
 Regularly holding its AGM
 No accumulated loss
De-listed company
Companies de-listed from CSE and/or DSE
How To Apply For Registration In The OTC
I. Apply in prescribed Form A
II. Enclosed necessary documents and Undertaking in 100.00 taka stamp paper with the application
form as prescribed by the Exchange.
III. Submission of all documents as required by the Board of the Exchange
.

8. ICB : Investment Corporation of Bangladesh
ICB is a government corporation acting as acting an investment bank, which mainly invest in
share market, providing loans and advances, acting as manager of mutual funds
a. Mutual 1: Equity Funds
Stock funds or it can be called equity fund that is invested in publicly traded as opposed to
privately-owned companies, are the most volatile of the three(mutual1,2,3) with their value
sometimes rising and falling sharply over a short period. But they are better over the long term
than other types of investments. That’s because stocks are traded on the expectation that a
company’s future results will include expanded market share, greater revenue, and higher profits.
b. Mutual 2: Fixed Income Funds
Fixed income funds are also called Bond funds, which is invested in corporate and government
debt with the purpose of providing income through dividend payments. Bond funds are often
included in a portfolio to boost an investor’s total return, by providing steady income when stock
funds lose value.
c. Mutual 3: Money Market Funds
Money market funds have relatively low risks, compared with other mutual funds and most other
investments and low return. By law, they are limited to investing only in specific high-quality,
short-term investments issued by the U.S. government, U.S. corporations, and state and local
governments.