This document provides an overview of the stock markets and power industry in Bangladesh. It discusses that there are two stock markets, the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE), which are overseen by the Securities and Exchange Commission (SEC). It then outlines the objectives and methodology of studying stock prices in Bangladesh's Power & Fuel Industry. Next, it provides details about the formation, management, and market capitalization of the DSE. It also discusses Bangladesh's reliance on natural gas for power generation and the need to diversify energy sources. Finally, it describes the various equity, fund, bond, and debenture products that are traded on the DSE.

1. 1.1 Introduction
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. A central regulatory
agency which is the Securities and Exchange Commission (SEC) overseeing the activities of the
entire capital market including issue of capital, monitoring the issue of stocks, and operation of the
stock markets. The number of listed companies in DSE are 378 of which are shares, 11 debentures,
and 9 mutual funds. The listed companies in CSE are 232 with shares, 14 mutual funds and 1
debenture.
1.2 Objectives of the study
 To provide the information of a full range of stock price in Power & Fuel Industry - including
market return, index return and CDs available in Dhaka Stock Exchange.
 To provide price change 60 days stocks before discloser and 60 days after disclosers of
dividend in particular stock.
1.3 Methodology
 To attain the above stated objectives, we collected information about Dhaka Stock
Exchange from internet. Also we took some help from the CDs available in Dhaka Stock
Exchange for particular stock price. We tried our level best to collect and present the latest
information about DSE.
1.4 Limitation of the study
This report is subject to a number of limitations. These are:
 Secrecy of documents posed a major problem since discloser of some information’s been
restricted.
 Sufficient records, publications, facts and figures are not available.
 Even we could not accumulate all the available information. However, we have tried our
best to prepare our report as good as possible within these limitations.

2. Chapter Two
At a glimpse of Dhaka Stock Exchange Ltd.
2.1 Introduction:
The necessity of establishing a stock exchange in the then East Pakistan was first decided by the
government when, early in 1952, it was learnt that the Calcutta Stock Exchange had prohibited the
transactions in Pakistani shares and securities. The Provincial Industrial Advisory Council of
Pakistan soon thereafter set up an organizing committee for the formation of a stock exchange in
East Pakistan. A decisive step was taken in the second meeting of the organizing committee held on
the 13th march, 1953. In the cabinet room, Eden building, under the chairmanship of Mr. A.
Khaleeli, secretary of the government of East Bengal, commerce, labor and industries department at
which various aspects of the issue were discussed in detail.
Legal Control:
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.
Formation:
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 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 capitalisation of the Dhaka Stock Exchange reached nearly $9 billion in September 2007
and $27.4 billion on 9 December 2009.
Management:
The management and operation of Dhaka Stock Exchange is entrusted on a 25 member’s board of
directors. Among them 12 are elected from DSE members, another 12 are selected from different
trade bodies and relevant organisations. The CEO is the 25th ex officio member of the board. The
following organisations 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.

3. 2.2 About Power & Fuel Industry of Bangladesh:
Bangladesh is undergoing a severe energy crisis and more alarmingly it is looking for alternative
suitable sources for power generation but still to select or decide the right one when the country is
just about to finish its gas reserve in near future. According to Petro Bangla almost 85 percent of
the power generation plant here is gas based which is quite unusual for any country. In Bangladesh
most of the industries especially the textile industries do not take power from the grid rather they
produce their own power by most cases gas generator. This power is called captive power. If we
calculate hypothetically we come with a data that Bangladesh has a supply of captive power for at
least 2700MW.
Peak demand of Power is catered by:
Natural gas 85%
Liquid fuel 6.76%
Coal 5.41%
Hydropower 2.45%
Natural Gas is the most important source of energy in our country as it accounts for about 75% of
the total commercial energy of the country. At present, about 37% of natural gas production is used
as fuel for electricity generation. Overdependence on the natural gas must be reduced as the present
reserve is not sufficient enough to support the country for long term economic growth.
Bangladesh, with a very low reserve of petroleum, has become a net petroleum import country.
Because of the recent liquid oil based power plants, petroleum requirements have increased by 28%
in 2011. Because of the unrest in Middle-East region, petroleum price is going up which will
increase import bill of Bangladesh Petroleum Corporation (BPC).
Aside from natural gas and petroleum, coal resource of the country is still underutilized because of
lack of proper guideline. Coal policy, which will ensure proper guideline regarding the usage of
this resource for the economic development of the country, is yet to be finalized.
Lack of investment in power generation in the last decade has created electricity shortage. With a
view to combat this, the Government of Bangladesh (GOB) has taken initiative to set up power
plants so that the country has sufficient electricity within 2016. Successful implementation of this is
highly dependable on the supply of fuel. Over dependency on gas for electricity generation must be
reduced, while coal and renewable energy based power plants must be introduced for sustainable
electricity generation.
Overall, in long term, an intelligent mix of the different available energy sources can enable
Bangladesh to ensure a sustainable economic growth of the country. Right conditions and
framework at policy and regulatory level is a must.

5. 2.3 Product & Services of DSE:
Currently two types of Equity instruments are tradable at DSE -
These are ordinary shares of listed companies. For a certain period from the IPO date certain
number of shares is not tradable. 3 years after listing all shares are usually tradable unless there are
right offerings. Directors portion of right shares are not tradable for 1 year. DSE Indices are
calculated based on free float shares of selected listed companies. Free float is adjusted for non
tradable shares, institutional holdings, strategic holdings and sponsor-director holdings. Equity
shares depending on the category have settlement period of T+2 or T+9. For implementation of
record dates for corporate actions shares are sometimes placed on T+0 settlement cycles for certain
number of days.
Funds
These are units of one of the variants of listed collective investment schemes. These funds are
usually closed end mutual funds governed by the Securities and Exchange Commission (Mutual
Funds) Rules, 2000 and is backed by one corporate sponsor and usually is named with the
sponsor’s name. The sponsors are required to hold at least 10% of the holding for at least a period
of 1 year and 1% of the holding for the total life of the fund. There are designated Asset managers
and Trustees. The Asset Managers manage the funds on day to day basis and investment strategies
are governed by the IPO prospectus and is supervised by the Trustees. All assets of a mutual fund is
maintained with a custodian. Mutual funds are traded on a T+2 settlement cycles. For
implementation of record dates for corporate actions shares are sometimes placed on T+0
settlement cycles for certain number of days. Mutual Funds are not parts of any indices. Asset
managers are required to disclose NAV of respective mutual funds on weekly basis.
Currently three types of Debt instruments are tradable at DSE
Bonds
There are corporate bonds issued by companies that may or may not be listed with DSE. All current
bond issuers are listed with DSE. Corporate Bonds are traded on T+2 settlement period trading
fees, unlike equities, are fixed at Taka 50 per transaction.
All treasury bonds issued by the Bangladesh Bank (Central Bank of Bangladesh) are listed with
DSE. The common maturities are 5, 10, 15 and 20 years. Coupon rate varies from 8.5% to 13%
depending on when the bonds were issued. Par value of each treasury bond is Tk. 100,000. There is
a alternate market for trading treasury bonds hosted by Bangladesh Bank where the AD Banks can
participate in trading. Settlement period for treasury bonds are T+0 and trading fees, unlike
equities, are fixed at Taka 50 per transaction.

6. These are unsecured debt instruments issued by listed companies. They carry both variable and
fixed interest rates. All currently listed debentures are matured and are still listed due to some
incomplete legal proceedings. Debentures are traded on T+2 settlement period trading fees, unlike
equities, are fixed at Taka 50 per transaction.
DSE has already initiated steps to explore and ultimately launch various new tradable products
starting with Exchange Traded Funds to be followed in the long term by expansion of current
product offering to include Convertibles, Bonds, Shariah Compliant Products including Sukuk,
ETFs and REITs. Once these products are in mature form the department will be seeking to launch
related hedging products. Fresh dialogue with Bangladesh Bank will be initiated to allow active
trading of Treasury Bonds on the Exchange. Future Product design, marketing, formation of
regulatory framework, stakeholder readiness are all part of work plans for the Division.
2.4 Disclosure effects of different stocks price
In the 1970s Eugene Fama defined an efficient financial market as "one in which prices always
fully reflect available information”.
A trait of an allocatively efficient financial market is that it channels funds from the ultimate
lenders to the ultimate borrowers in a way that the funds are used in the most socially useful
manner.
Eugene Fama identified three levels of market efficiency:
1. Weak-form efficiency
Prices of the securities instantly and fully reflect all information of the past prices. This means
future price movements cannot be predicted by using past prices. This simply means that past data
on stock prices are of no use in predicting future stock price changes.
2. Semi-strong efficiency
Asset prices fully reflect all of the publicly available information. Therefore, only investors with
additional inside information could have an advantage in the market. Any price anomalies are
quickly found out and the stock market adjusts.
3. Strong-form efficiency
Asset prices fully reflect all of the public and inside information available. Therefore, no one can
have an advantage in the market in predicting prices since there is no data that would provide any
additional value to the investors.

7. Disclosure Requirement of listed Company
The listed companies are required to submit
– Yearly Audited Financial Statement within four months from the year end.
– Half-yearly un-audited financial statement within one month from the date of half year ends.
– Disseminating Price Sensitive information within 30 minutes of making any price sensitive
decision or Occurrence of price sensitive event.
It is mandatory to follow the following standards in preparation of the accounts
– International Accounting Standards (IAS)
– International Standards for Auditing (ISA).

8. 2.5 Price change 60 days stocks before & 60 days after disclosure for last 15 years
MEGHNA PETROLEUM LIMITED
Year 2016 2015 2014 2013 2012 2011 2010
61 days before 2.87 3.25 4.56 3.96 3.53 3.14 4.26
Market index
0.62 76.39 74.68
73.10
62.26
83.83 85.50
60 days after 0.21 0.10 0.01 0.36 0.53 -0.31 0.24
Market index
3.23 213.71 11.21 (8.39) 4.07 (3.42)
10.30102
JAMUNA OIL COMPANY LIMITED
Year 2016 2015 2014 2013 2012 2011 2010
61 days before 3.03 3.28 3.55 3.82 4.14 4.31 6.80
Market index 0.62194 76.3852 74.6754 61.9659 64.32046 80.99967 85.85446
60 days after 0.27 0.09 0.78 -0.06 0.76 -0.12 0.61
Market index 3.60246 4.14145 11.2124 -0.0669 1.418371 0.641066 10.30102
2.87
3.25
4.56
3.96
3.53
3.14
4.26
0.21 0.10 0.01
0.36
0.53
-0.31
0.24
-1.00
0.00
1.00
2.00
3.00
4.00
5.00
2016 2015 2014 2013 2012 2011 2010
61 days before
60 days after

9. PADMA OIL COMPANY LIMITED
Year 2016 2015 2014 2013 2012
61 days before 3.10 4.07 5.17 4.88 -3.68
Market index 0.62194 76.3852 74.7846 61.9659 -14.3562
60 days after 0.15 0.00667 0.58 0.80833 -0.015
Market index 3.60246 4.14145 11.1032 2.73225 10.44344
3.03 3.28
3.55
3.82
4.14 4.31
6.80
0.27 0.09
0.78
-0.06
0.76
-0.12
0.61
-1.00
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
2016 2015 2014 2013 2012 2011 2010
61 days before
60 days after
3.10
4.07
5.17 4.88
-3.68
0.15 0.006666667
0.58 0.808333333
-0.015
-6.00
-4.00
-2.00
0.00
2.00
4.00
6.00
2016 2015 2014 2013 2012
61 days before
60 days after

10. Summit Power Ltd
Year 2016 2015 2014 2013
61 days before (0.11) 0.64 0.52 0.64
Market index 75.61 74.25 72.80 70.16
60 days after 24.31 (0.03) 0.17 (0.09)
Market index - 6.86 10.02 (4.77)
(0.11)
0.64
0.52
0.64
24.31
(0.03) 0.17
(0.09)
(5.00)
-
5.00
10.00
15.00
20.00
25.00
30.00
2016 2015 2014 2013
60 days before
60 days after

11. 2.6 Index performance of that time over the last 15 years
An index is an indicator or measure of something, and in finance, it typically refers to a statistical
measure of change in a securities market.
In the case of financial markets, stock and bond market indices consist of an imaginary portfolio of
securities representing a particular market or a portion of it. In reference to mortgages, it refers to a
benchmark interest rate created by a third party.
In analyzing volatility of security markets of Bangladesh, this report is based on the analysis of
indexes of two security markets of Bangladesh. Rather considering individual stock, the portfolio
(all treaded stocks, Debentures and mutual funds) is considered.
Each market calculates two indexes. DSE use General Price Index and DSE20. CSE use General
Price Index and CSE30. DSE20 represents the top 20 stocks of DSE and CSE30 represents top 30.
Padma Oil Company
Padma Oil Company Limited (POCL) is not only the biggest but also the oldest with its
antecedents stretching well back to the colonial period of British-India. Its ancestral enterprise
“Rangoon Oil Company “established petroleum business in this part of the world by the middle of
nineteenth century. Prior to the partition of the sub-continent in 1947, mainly two oil marketing
companies namely Burmah Oil Company (BOC) and Burmah Shell Oil Storage and Distribution
Company (BSOC) were operating Petroleum Business in the area what now comprise Bangladesh.
Burmah Shell established Aviation Depot at Tejgaon Airport in the year 1948.

12. It is a descendant of the historic Burmah Oil Company in the British Empire and began operations
in Bengal in 1903. In 1965, Burmah Eastern was established in Chittagong jointly by Burmah Oil
and East Pakistani investors.
Burmah Oil sold the company to the Bangladesh Petroleum Corporation in 1977. It was renamed as
the Padma Oil Company in 1988 after the Padma river.
Today, the company is one of the largest distributors of petroleum products in Bangladesh, and is
listed on the Dhaka StockExchange and the Chittagong Stock.
Padma Oil Company
Year Market Return Index Return
2016 0.27 91.94
2015 -20.5 -86.63
2014 -6.28 160.78
2013 17.75 100.68
2012 -94.17 -244.94
2011 -23.75 -695.64
2010 40.58 862.19
2009 -228.64 396.25
2008 6.72 -61.2
2007 222.67 343.88
2006 0.28 13.53
2005 73.15 -89.55
2004 7.22 278.93
2003 38.19 33.9
2002 5.53 3.86
2001 8.06 47.44
2000 6.67 42.64

13. Performance Gap:
In Market return Gap analysis involves the comparison of actual performance with market
performance. If an organization does not make the best use of current resources, or forgoes
investment in capital or technology, it may produce or perform below its potential. In graph we
make comparison of actual market return with Market Index return & we find out the gap.
Padma Oil Company
Market Return
100000.00%
80000.00%
60000.00%
40000.00%
20000.00%
0.00%
-20000.00%
2016 2015 2014 2013 2012 2011 2010 09 2008
-40000.00%
-60000.00%
-80000.00%
20
Market Return Index return
40000.00%
35000.00%
30000.00%
25000.00%
20000.00%
15000.00%
10000.00%
5000.00%
0.00%
-5000.00%
-10000.00%
-15000.00%
2007 2006 2005 2004 2003 2002 2001 2000

14. Meghna Petroleum Limited:
Meghna Petroleum Limited (MPL) was set upon December 27, 1977 under Company Act 1913
(later on company Act 1994), as a private limited company with the objectives of taking over the
physical possession of all the fixed assets of the erst while Meghna Petroleum Marketing
Company Limited (MPMCL) and Padma Petroleum Limited (PPL) as on March 31, 1978.
Meghna Petroleum Marketing Company Limited was created after acquiring the operation of the
then ESSO Eastern Inc. (1962) of America in 1975 and Padma Petroleum Limited was created in
1972 after acquiring the operation of the then Dawood Petroleum Limited (1968).

15. At present there is a Board of Directors comprising of 9 members to run the company. The overall
activities of the company are performed with the approval of the Board of Directors.Meghna
Petroleum Limited.
Year Market Return Percentage Index Return Percentage
2016 30.5 8% 330.98 92%
2015 -62 -17% -311.87 -87%
2014 -13.1 -4% 2578.81 161%
2013 52.1 14% 75.56 21%
2012 -35 -10% -881.79 -245%
2011 49.8 -14% -2504.31 -696%
2010 -33.8 -9% -3103.9 862%
2009 127.4 35% 1426.49 396%
2008 -164.2 -46% -220.31 -61%
92%
-87%
161%
21%
-245%
-696%
862%
396%
-61%
-800%
-600%
-400%
-200%
0%
200%
400%
600%
800%
1000%
2016 2015 2014 2013 2012 2011 2010 2009 2008
Market Return Index Return Linear (Market Return)

16. Jamuna Oil Company Limited:
Jamuna Oil Company Limited is a petroleum marketing company serving the nation for the last
four decades. Originally the name of company was Pakistan National Oils Limited which was
formed in the year 1964.
After our long cherished independence the company was renamed to Bangladesh National Oils
Limited by an Ordinance of 1972. In the year of 1973 Bangladesh National Oils Limited was
renamed to Jamuna Oil Company Limited and registered as a Private Limited Company on 12th
May, 1975 under the companies act, 1913 (amended 1994).
It has been functioning as a subsidiary of Bangladesh Petroleum Corporation (BPC) since 1977.
As per decision taken by Government & BPC, the company was converted into a Public Limited
Company on 25th June, 2007.
Jamuna Oil Company Limited
Year Market Return Index Return
2016 10.5 91.94
2015 -14.22 -86.63
2014 1.53 160.78
2013 3.44 100.68
2012 -1.14 -244.94
2011 -44.69 -695.64
2010 -37.33 862.19
2009 86.83 396.25
2008 -127.56 -61.2

17. Summit Power Ltd
The Summit Group is one of the leading private sector conglomerates of Bangladesh, comprising
more than twenty business units ranging from power to shipping to communications and currently
generating 792 MW of electricity and another 393 MW is under construction. Summit Power
Limited (SPL), a subsidiary of Summit Group is the first Bangladeshi Independent Power Producer
(IPP) in Bangladesh in private sector providing power to national grid. SPL was incorporated in
Bangladesh on March 30, 1997 as a Private Limited Company. On June 7, 2004, the Company was
converted into Public Limited Company under the Companies Act 1994.
Today Summit Power Limited owns and operates 11 (eleven) power plants at different locations
across the country having a total capacity of 317 MW. Our power plants are equipped with engines
manufactured by world famous technotex companies, i.e. Wartsila – Finland, Caterpillar - USA,
and GE Jenbacher, Austria. All of its power plants run 24 hours a day to support the national grid.
As per private sector power generation policy of Bangladesh, Summit sells electricity to the
Bangladesh Power Development Board (BPDB) and Bangladesh Rural Electrification Board
(BREB) only. Due to the practice of Integrated Management System (IMS) to run the day-to-day
business operation, the Company has been certified by ISO 9001: 2008 - Quality Management
System, ISO 14001: 2004 - Environmental Management System and OSHAS 18001: 2007 -
Occupational Health and Safety Assessment System.
91.94
-86.63
160.78
100.68
-244.94
-695.64
862.19
396.25
-61.2
-80000.00%
-60000.00%
-40000.00%
-20000.00%
0.00%
20000.00%
40000.00%
60000.00%
80000.00%
100000.00%
2016 2015 2014 2013 2012 2011 2010 2009 2008
Market Return Index return Linear (Index return)

18. Year Market Return Percentage Index
Return
Percentage
2016 30.5 -1% 330.98 92%
2015 -62 0% -311.87 -87%
2014 -13.1 -11% 2578.81 161%
2013 52.1 -4% 75.56 21%
2012 -35 -6% -881.79 -245%
2011 49.8 -39% -2504.31 -696%
2010 -33.8 -341% -3103.9 862%
2009 127.4 62% 1426.49 396%
2008 -164.2 -220.31 -61%
-1%
0% -11%
-4%
-6%
-39%
-341%
62%
35%
862%
396%
-61%
-800%
-600%
-400%
-200%
0%
200%
400%
600%
800%
1000%
2016 2015 2014 2013 2012 2011 2010 2009 2008
Market Return Index Return Linear (Index Return)

19. 2.7 The Role of market Surveillance of the disclosure effect
Monitoring activities are very much important for smooth operation of Capital Market and this
monitoring activity is the way to continue good relationship with the member. Any member can
come with their problem. At present Dhaka Stock Exchange has 238 Member Companies. Again
these member companies have more than 350 branch offices. The activities of these Member
Companies and their Branch Office are under close monitoring of Dhaka Stock Exchange through
the following cells:
 Surveillance Cell
 Monitoring cell
Monitoring activities by Surveillance Cell:
The main objective of the Surveillance function of the Exchange is to promote market integrity in
two ways, i.e., by monitoring price and volume movements (volatility) as well as by detecting
potential market abuses at a nascent stage, with a view to minimizing the ability of the market
participants to influence the price of the scrip/scrip’s in the absence of any Meaningful information.
Market Abuse is a broad term which includes abnormal price/volume movement, artificial
transactions, false or misleading impressions, insider trading, etc. In order to detect aberrant
behavior/ movement, it is necessary to know the normal market behavior. The department carries
out investigation, if necessary, based on the preliminary examination/analysis and suitable actions
are taken against members involved based on the investigation. All the instruments traded in the
market come under the Surveillance umbrella of DSE.
Surveillance activities at the Exchange are divided broadly into two major segments -
Price Monitoring
Price monitoring is mainly related to the price movement or abnormal fluctuation in prices or
volumes.
The functioning of the Price Monitoring is broadly divided into following activities –
On line Surveillance Off-Line Surveillance

20. 32
Surveillance Actions:
 Warning to Members
 Imposition of penalty/ suspension
 Rumor verification .
Position Monitoring
The position monitoring relates mainly to abnormal positions of members, etc. in order to manage
default risk. The Surveillance Department closely monitors outstanding exposure of members on a
daily basis. For this purpose, it observes various off-line and on-line market monitoring reports. The
reports are scrutinized to ascertain whether there is excessive purchase or sale position build up
compared to the normal business of the member, whether there are concentrated purchases or sales,
whether the purchases have been made by inactive or financially weak members and even the quality
of scrip’s is considered to assess the quality of exposure. The following key areas are examined to
assess the market risk involved –Online monitoring of Brokers Position Surveillance closely monitors
brokers’ gross turnover exposure for ensuring margin calls in time. B/S Statement of Trading
Members Scrutinizing the statement on daily basis. It is for keeping a watch on the exposure of the
members & ascertains the quality of exposures. A detailed report on the net outstanding positions of
top purchasers and top sellers in individual scrip’s, is prepared, if considered necessary.
 Concentrated B/S
 B/S of scrip’s having thin trading .
 Verification of Institutional Trade.
 Verification of Foreign Trade
 Verification of Cross Reporting.
 Verification of Dealers own trades
 Verification of Sponsor’s Trade
 Snap Investigation .
Market Intelligence
Review Block Trades
Review List of Settlement Failures
Review Media Information.
Monitoring on Newly Listed Stock
Monitoring activities by Monitoring Cell:
To conduct with Monitoring activities, DSE has a smart and efficient Monitoring cell headed by the
departmental in charge and under supreme control and supervision of CEO of the company. This
monitoring cell is responsible directly for proper monitoring of the Capital Market. This cell monitors
activities of registered Brokerage house with DSE regarding their services in the capital market in
respect of share trading and settlement. The monitoring cell of the Monitoring, Investigation &
Compliance Department is divided into two Monitoring Teams. These Monitoring Teams are formed
by order of Chief executive officer according to SEC direction no SEC/SRMID/94-231/688 dated
June21, 2003.

21. 33
Overall governance practice of DSE
Governance is about how an agency is controlled and managed. It is about having the necessary
procedures and monitoring systems in place to ensure that the agency is performing all of its
functions to the required standard and in accordance with its legal obligations. Effective governance
is essential to an agency’s ability to fulfill its duties and responsibilities to the satisfaction of
parliament, the minister and the Victorian public.
An agency, its board members and staff must comply with the agency’s governance framework
– i.e. the laws, government policies and other obligations
that bind the agency. These define:
• the agency’s purpose, objectives, functions and powers
• the collective and individual duties and accountabilities of board members (e.g. to identify and
manage conflicts of interest)
• the responsibilities of the chief executive officer and staff (e.g. to comply with the public sector
values).
Some governance requirements are specific
– they apply only to a particular agency or type of agency (e.g. the agency’s establishing Act.
Typical elements of a governance framework
Typical elements of the governance framework of a public entity or similar agency include:
a) Establishing or enabling Act
The foundation of your agency’s governance framework is its establishing Act
(Sometimes called enabling Act), which parliament passes to establish the agency or to enable the
minister or the Governor in Council to establish agencies of that type, via a legal instrument. All DSE
public entities and similar agencies have an establishing Act. Your agency’s establishing Act, and
other documents/instruments that flow from it, are the basis of its existence. They define its purpose,
objectives, functions and powers, together with the duties and accountabilities of board members.
b) Public Administration Act 2004
The PublicAdministrationAct2004(PAA) isa keypart of the governance frameworkof all Victorianpublic
entities.Itsetsthe standardsof conductthat youragency,the board and staff mustcomplywithwhen
performingtheirduties.Inparticular,itsetsoutthe publicsectorvalues,whichapplytothe boardmembers
and staff of all publicentitiesandsimilaragencies(section7). It also includes a range of other
requirements, such as the public sector employment principles (section 8) and the duties of directors-
i.e. board members (section 79).
c) Financial accountability laws

22. 34
Financial Management Act 1994
The Financial Management Act 1994(FMA) is the basis for the financial management and reporting
requirements (including annual reporting requirements) that Victoria’s public bodies must comply
with. Most DSE public entities and similar agencies are public bodies. Standing Directions issued by
the Minister for Finance, pursuant to section 8 of the FMA, set out how the requirements of the FMA
must be implemented – e.g. annual reports must be prepared in accordance with the
Financial Reporting Directions issued by the Minister for Finance.
The Standing Directions have legislative force. The Department of Treasury and Finance publishes a
binding Financial Management Compliance Frame work on behalf of the minister, which details how
to comply with the Standing Directions.
A small number of agencies have reporting requirements under their establishing Act. These are in
addition to any FMA requirements that apply to the agency.
Audit Act 1994
Most DSE public entities and similar agencies must undergo an annual audit of their financial
statements in compliance with the Audit Act 1994. If an agency is not subject to this Act, it may be
required to submit to an audit by the Auditor-General at intervals of no more than three years.
d) Government policies
The agency must operate consistently with government policy, both strategic and operational.
Strategic policies some government policies set the overall strategic direction for Victoria and provide
the context within which all Victorian public sector agencies must operate. Other government policies
spell out a specific aspect of this strategic direction in more detail and may be of particular relevance
to your agency (e.g. the government’s strategic direction in relation to water resource management).

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Major Findings & Analysis:
If u compare with Padma oil, Meghna oil & Jamuna oil we sow Padma oil is a better
performance than Meghna oil & Jamunaoil.
Let‟s have a look in market return of Padma oil, Meghna oil &Jamuna oil.
Year DSE Index Padma Oil Meghna Oil Jamuna Oil
2016 91.94 0.27 8% 10.5
2015 -86.63 -20.5 -17% -14.22
2014 160.78 -6.28 -4% 1.53
2013 100.68 17.75 14% 3.44
2012 -244.94 -94.17 -10% -1.14
2011 -695.64 -23.75 -14% -44.69
2010 862.19 40.58 -9% -37.33
2009 396.25 -228.64 35% 86.83
2008 -61.2 6.72 -46% -127.56
Recommendation:
The library of Dhaka Stock Exchange is too much restricted that‟s why difficult to collect data.
Lots of data missing for that reason it‟s difficult to get proper result. We try with our level base
for make this report.
We think the stock performance of Padma oil, Meghna oil &Jamuna oil not very well. To invest
those companies is risky.

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Conclusion:
From our analysis we have found that major indicators of the country’s major stock exchange
is becoming more volatile over time and the regulators are not efficient enough to guard this
volatility. But, for a developing country like Bangladesh, the importance of sound
development of the market cannot be undermined. Although the SEC has been trying to
maintain a continuous flow in the market, very often its role meets the broad economic
objectives. In order to make the market less volatile, SEC itself should be strengthen both in
terms of number of manpower and quality of the professionals involved with special focus on
independent research, monitoring mechanism and prompt decision making. However, the
following steps might be considered from the regulators position for the sound development of
the market so that the interests of all parties in the market are addressed properly.
The decisions taken by the regulatory authority should be made as much as predictable with
providing adequate explanation for the investors. Again, before taking any major regulatory
decisions a broad-based consultation among widely representative advisory committees,
deliberations with the stock exchanges and intermediary associations, chambers of commerce
and investor associations and the public which helped drive market consensus for the reforms
could be considered by the SEC.
15. CONCLUSION
Dhaka Stock Exchange is most important issue for our country progress. We can not ignore its importance in the
economic part of our country. In our report we try our level best to highlight the specific section of Dhaka Stock
Exchange which are cleaning & settlement& trading of this business.Here we mention all the possible advantage s&
disadvantages in trading & settlement of DSE.
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 investor- putting your interest first and doing what we can to help you to be
successful.

25. 37
Reference
http://www.dsebd.org/
https://www.google.com/webhp?hl=en&sa=X&ved=0ahUKEwi-
lKWYg6bTAhURTY8KHVHXD9IQPAgD#hl=en&q=This+overall+governance+practice+of+D
SE
https://www2.delwp.vic.gov.au/__data/assets/pdf_file/0019/9712/DSE-guide-to-good-
governance-board-members-June-2011.pdf
http://bdresearch.org/home/attachments/article/396/EFFECT%20OF%20DIVIDEND%20ANNO
UNCEMENT-Md.%20Hamid%20Uddin.pdf
http://www.sb.iub.edu.bd/images/sum-2015/A4.pdf
http://www.biiss.org/seminar%202011/papers/energy_mahfuz.pdf
http://www.investopedia.com/terms/i/index.asp#ixzz4ej6uJDoG