brief presentation about Dhaka stock exchange.

2. Introduction
“The stock exchange provides a market place where
shares can be bought and sold. The efficiency and
effectiveness of the financial market and the
progress of the overall economy largely depends on
the role of the stock exchange. There are two stock
markets in Bangladesh, one is named Dhaka Stock
Exchange (DSE) in Dhaka and another one is called
Chittagong Stock Exchange (CSE) in Chittagong.”

3. Role of Stock Exchange
The stock exchange admits companies for trading
at their securities.
It provides a market for raising capital by
companies.
It provides a market place for shares of listed
public companies to be bought and sold, by
bringing companies and investors together at one
place.
The exchange’s role is to monitor the market to
ensure that it is working efficiently, fairly and
transparently.

4. History and Background of DSE
Necessity of a stock exchange felt then East Pakistan
when Calcutta Stock Exchange had prohibited the
transaction of Pakistani share.
The central govt. proposal was the Karachi Stock
Exchange opening a branch at Dhaka but this didn’t favor
cause we wanted a independent stock exchange.
8 promoters incorporated the formation as the East
Pakistan Stock Exchange (later named as Dhaka Stock
Exchange) on 28-04-1954.
Authorized capital was Rs. 300000 divided 150 share of
Rs. 2000.
Formal trading started in 1956.

5. 1. Enhancing bond market.
2. Bringing all securities under CDS under 2 years.
3. Bringing whole country under trading network.
4. Ensuring greater degree of transparency in
financial disclosure.
5. Introducing book building process for IPO.

6. Regulatory Structure
Parliament of Government of
Peoples Republic of Bangladesh
Ministry of Finance
Securities and Exchange
Commission
Dhaka Stock Exchange
Ltd. (DSE)
Corporate Members of
DSE

7. Management
 DSE is entrusted on a 25 members board of
directors.
 12 are elected from DSE members
 Another 12 are elected from different trade bodies
 The CEO is the 25th ex officio member of the
board.

8. Market
Sectors
Banks Financial
Instituti
ons
Mutual
Funds
Engineer
ing
Food and
allied
products
Fuel and
Power
Jute
Textile
Informat
ion
Technolo
gy
Telecom
municati
on
Pharmac
euticals
and
chemical
s
Paper
and
printing
Services
and real
state
Cement
Tannery
industry
Insuranc
e
Corporat
e bond
Ceramic
industry
Miscella
neous
Travel
and
leisure

9. Functional area of DSE
Function of DSE
 Monitoring the activities of listed companies
Publication of Monthly Review
 Protecting investors Fund
 Administration & Controlling market
Providing the screen based automated trading Security
Treading day
 The trading shall be open on all days except bank holidays
Trading Period
 The trading period shall be between 10:30 AM to 2:30 PM on all
trading days

10. Qualification for Trading:
 Obtains a registration certificate
 Becomes a member of the DSE clearing house
Treading function of DSE:
 ICT creates a new instance in the securities market
operations
 Ensure transparency
 introduced Automated Trading System on 10th August 1998

11. The functions of trading sessions
 Pre‐Introducing Session
 Introducing Session
 Serial or Regular Trading Session
 Ending Session
 Post‐Ending Session

12. SWOT ANALYSIS
 Strength: well trained & dedicated management team
 Weakness: lack of strong surveillance over share price
need to improve guide line process.
 Opportunities: decided to open media & call centre
introduce to online treading across the world.
 Threats: imbalance between demand & supply
through capital market increasing

13. Monitoring activities
 Two monitoring cells:
I. Surveillance cell
II. Monitoring cell
 Different types of monitoring activities
I. Formal monitoring of member companies
II. Spot monitoring member companies
III. Branch office monitoring member companies

14. Investigation Activities of DSE
 The function of investigation cell is to conduct various
types of investigation activities like
1. Members company investigation
2. Enlist company investigation
3. Investigations on clients complaints
4. Investigation on marketing manipulation
5. Study on BSEC

15. Problem
 Lack of manpower
 Lack of controlling
 Influencing on powerful member
 Logistics facilities is not proper for monitoring
 Less trained employree

16. Suggestions
 Manpower should be increased
 Organization model should be improved
 Proper logistics facilities should be provided
 SEC should give more power to DSE regarding
monitoring punishment

17. Clearing & Settlement
 Clearing: Participant trade reporting, affirmation,
billing and assigning settlement instructions
 Settlement: The process of overseeing that
delivery of all instruments to the buyer and
payment of all moneys to the seller has occurred
before removing the trade from the settlement
pool.

18. Criteria of The Share Category
“A’ Category Companies: Regular holding company holding
the general meetings & declared dividend 10%
“B’ Category Companies: regular but failed to declare
dividend.
“Z’ Category Companies : no meetings no dividend.
“G’ Category Companies: greenfield companies
“N’ Category Companies: new listed company like B
category except Greenfield

19. CONCLUSION
Dhaka Stock Exchange is most important issue for our
country progress.
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.
It also helps to do different kind of investing
relationship: what really makes us different? It’s our
underlying commitment to you-the individual
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