Dhaka stock exchange

brief presentation about Dhaka stock exchange.

1. Welcome To Our Presentation

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

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 25 th ex officio member of the board.

8. 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

9. 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

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

11. 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

12. Monitoring activities Two monitoring cells: Surveillance cell Monitoring cell Different types of monitoring activities Formal monitoring of member companies Spot monitoring member companies Branch office monitoring member companies

13. Investigation Activities of DSE The function of investigation cell is to conduct various types of investigation activities like Members company investigation Enlist company investigation Investigations on clients complaints Investigation on marketing manipulation Study on BSEC

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

15. 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

16. 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.

17. 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

18. 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 investor- putting your interest first and doing what we can to help you to be successful.