The document summarizes a presentation on the capital market in Bangladesh. It defines capital markets and describes the primary and secondary markets. It then discusses the Bangladesh capital market in more detail, including the two main stock exchanges of Dhaka Stock Exchange and Chittagong Stock Exchange. It provides background on DSE and describes the categorization of listed companies. The presentation outlines some policies of DSE, its functions, and common problems and limitations. It concludes with suggestions to improve the activities of DSE.

1. Presentation
on
Capital Market in Bangladesh
PRESENTED TO:
Prof. Dr. KAZI TANVEER MAHMUD
PRESENTED BY:
COURSE TITLE: INTRODUCTION TO BUSNESS
COURSE CODE: BUS 1231
DEPARTMENT OF ECONOMICS
BATCH:29TH
Name ID
Hasan Chowdhury 2017020106006
Kaniz Fatima 2017010106007
Fazlay Rabbany 2017020106014

2. Table of content
 What is Capital Market?
 Sub-Markets of Capital Market.
 Capital Market in Bangladesh.
 Background of Dhaka Stock Exchange.
 Categorization of listed company.
 Policies of DSE.
 Function of DSE.
 Problems and Limitations of DSE.
 Suggestions to Improve the Activities of DSE.
 Conclusion.

3. CAPITAL MARKET

4. 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.

6. 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.

7. Capital Market in Bangladesh
 Bangladesh capital market is one of the smallest in Asia but one of the largest in
the South Asian 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

8. 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

9. 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 (A category) 8 2
Treasury Bonds: 75 -

10. Policies of 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 the interest of the investors.
 To force the listed companies to declare and pay regular dividends through conducting Annual
General Meeting.
 To make arrangement to set up merchant banks, investment banks and floatation of more mutual
funds particularly in the private sectors.
 More banks, insurance companies and other financial institutions should be encouraged to deal in
share business directly.
 The management of DSE should be vested with professionals and should not in any way be
linked with the ownership of stock exchange and other firms.
 To train the investors about fundamentals to deal in share transactions.
 To punish the member brokers for breaching of contract.

12. Function of DSE
 Listing of Companies
 Providing the screen based automated trading of listed Securities
 Settlement of trading
 Granting approval to the transaction
 Market Administration & 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.

15. 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

16. Suggestions to Improve the Activities of
DSE
 To force the listed companies to publish their annual reports with actual and
proper information that can ensure the interests of investors.
 To introduce automated monitoring system that may control price manipulation,
malpractices and inside trading.
 To introduce full computerized system for settlement of transactions.
 To force the listed companies to declare and pay regular dividends through
conducting Annual General Meeting.
 To take remedial action against the issues of fake certificates.
 Banks, insurance companies and other financial institutions should be encouraged
deal in share business directly.
 To punish the member brokers for breaching of contract

17. 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.