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1. Dhaka Stock Exchange (DSE)

Dhaka stock Exchange is a public ltd company. It is formed and managed under company act
1994, Security and Exchange Commission Act 1993, Security and Exchange Commission
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.
Brief History of DSE: DSE was incorporated as East Pakistan Stock Exchange Association Ltd
in 28 April 1954 and started formal trading in 1956. It was renamed as East Pakistan Stock
Exchange Ltd in 23 June 1962. Again it was renamed as Dacca Stock Exchange Ltd in 13 May
1964. After the liberation war in 1971 the trading was discontinued for five years. In 1976
trading restarted in Bangladesh, on 16 September 1986 DSE was started. The automated trading
was initiated in 10 August 1998 and started on 1 January 2001. A Central Securities
Depository System was initiated in 24 January 2004.
2. Chittagong Stock Exchange (CSE
The Chittagong Stock Exchange (CSE) is the second stock Exchange in Bangladesh.
Brief History of CSE: CSE began its journey in 10th October of 1995 from Chittagong City
through the cry-out trading system with the promise to create a state-of-the art bourse in the
country. Founder members of the proposed Chittagong Stock Exchange approached the
Bangladesh Government in January 1995 and obtained the permission of the Securities and
Exchange Commission on February 12, 1995 for establishing the country's second stock
exchange. CSE was formally opened by then Hon'ble Prime Minister of Bangladesh on
November 4, 1995.
3. Central Depository Bangladesh ltd
Central Depository Bangladesh Limited (CDBL) was incorporated on 20th August 2000
sponsored by the country's Nationalized Commercial Banks (NCBs), Investment Corporation of
Bangladesh (ICB), Private Commercial Banks (PCBs), Foreign Banks, Merchant Banks, Publicly
listed Companies, Insurance Companies and Dhaka & Chittagong Stock Exchanges with the
collaboration of the Asian Development Bank (ADB). Legal basis for CDBL's operations is set
out in the Depositories Act 1999, Depositories Regulations 2000, Depository (User) Regulations
2003, and the CDBL by-laws.
Functions:
CDBL's core services cover the efficient delivery, settlement and transfer of securities through
computerized book entry system. CDBL's operations are carried out in its Main Data Centre

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which is linked to a remote Disaster Recovery Centre operating as a backup with data update
taking place simultaneously. Network connectivity to Depository Participants, Issuers,
Banks, Stock Exchanges and Bangladesh Bank is through Front End interfaces accessed by
WAN link and dial-up telephone lines.
4. Full DP
Depository Participant (DP) is described as an agent of the depository. They are the
intermediaries between the depository and the investors. The relationship between the DPs and
the depository is governed by an agreement made between the two under the Depositories Act.
Full DPs are fully service participants . Now In CDBL there are 331 full DPs.
5. Trading DP
6. opening BO account
The full meaning of BO account is Beneficiary Owners account. A BO account is opened with
the reference of a bank account no. One can open a BO account in brokerage houses, which are
registered under a stock exchange.
To open BO account:
1. At first you need a bank account no. If you already have, it will be very good. Then you need
to contact a registered brokerage house under a stock exchange. There you will be given some
forms, which are to fill up very carefully..
2. To open a personal account youll need two copies of PP size colored photograph, one
photocopy of national ID card of the account holder.
3. Within 3 working days the brokerage house will provide you BO account no. as well as a
code. The code is used for buying and selling the shares in secondary market.
7. Link BO account
A BO account holder can open at most a link BO Account. But the Important thing is that with
whom the link account is open he/she cant open a BO account.
8. A Category share
Companies which are regular in holding the Annual General Meetings (AGM) and have declared
dividend at the rate of 10 percent or more in a calendar year are included in A category.
A category share represents the excellence of performance of the company. A category
companies are required to pay dividend at least 10 percent otherwise these A category company
declines to N then B and finally to Z category if they fail continuously to pay dividend.

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9. B Category share
Companies which are regular in holding the AGM but have failed to declare dividend at least at
the rate of 10 percent in a calendar year are included in this category.

B category share represents the below normal in performance of a company. If these

companies pay dividend 10 percent or more then they jump to N and A category.
10. Z Category share
Companies which have failed to hold the AGM or failed to declare any dividend or which are not
in operation continuously for more than six months or whose accumulated loss after adjustment
of revenue reserve if any is negative and exceeded its paid up capital

Z Category represents the poor performance of a company. If these companies fail to pay
dividend for years consecutively, then those companies share are categorized as Z category.
11. Bullish market
This is when the market is showing confidence. Indicators of confidence are prices going up,
market indices like go up too. Number of shares traded is also high and even the number of
companies entering the stock market show that the market is confident. These are bullish
characteristics. If there is a run of bullish days then this market known as bullish market.
12. Bearish market
A bear market is the opposite to a bull. If the markets fall by more than 20% then we have
entered a bear market. A bear market is a market showing a lack of confidence. Prices hover at
the same price then go down, indices fall too and volumes are stagnant. In a bear market people
are waiting for the bulls to start driving the prices up again. However, a bear is a very tentative
bull or a bull that is asleep.
13. Settlement of buy and sell of share
The settlement of buy and sell of share are done through brokerage house.
For such case the following steps are flowed:
1. For buy, one has to have sufficient amount in his code given by brokerage house.
2. Then he/she asks the broker to buy and sell the shares using electrical software for his/her.

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3. He/ she will not get any certificate but all his shares are recorded and deposited in the
brokerage house.
4. He/she then can sell the shares through the broker after two days of
maturity.
14. Free float share
A company's free float refers to the number of outstanding shares that are available to the public
for trade. The equation for free float is as follows:
Free Float = Outstanding Shares Restricted Shares
Free float is generally described as all shares held by investors, other than restricted shares held
by company insiders. It does not include restricted shares, which are owned by company
management, officers and other various insiders because it's assumed that those shares are being
held on a very long-term basis
15. Immature share
After buy the share through broker, the shares cant be sold immediately .To sell the shares the
investors need to wait for maturity. In Bangladesh the maturity period of share is two working
days. Before two days of maturity the shares are called immature share.
16. Cum dividend share price
If shares are bought before the record date, then the shares are bought with cum dividend.
The buyer will be entitled to get the dividend.
17. Ex dividend share price
If the shares are bought after the record date, then the shares are bought with ex dividend.
The seller will be entitled to get the dividend.
18. Direct listing conditions
1. Fully owned Government company only
2. Shall have minimum paid up capital of Tk. 100 (one hundred) million
3. Shall be in commercial operation for at least immediate last five years
4. Shall have profit in three years out of the immediate last five completed
5. Accounting/financial years with steady growth pattern
6. Is regular in holding annual general meeting

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19. Book building conditions

1. Must have at least Tk. 30 crore net-worth
2. Shall offer at least 10% shares of paid up capital (including intended offer) or Tk. 30 crore at
face value, whichever is higher.
3. No issuer of a listed security shall utilize more than 1/3rd (one-third) of the fund raised
through IPO for the purpose of loan repayment.
4. Shall be in commercial operation for at least immediate last three years
5. Shall have no accumulated loss at the time of application
6. Shall be regular in holding annual general meeting
8. The company who intends to raise capital under Book Building Method, its financial
statements shall be audited by the foreign affiliated audit firm.
9. In case of IPO under Book Building Method as per the Securities and Exchange Commission
(Public Issue) Rules, 2006, by the Thrust Sectors (namely, Power and Gas Infrastructure)
companies, the requirements for minimum period of commercial operation and profitability shall
be 1 (one) year
10. No issuer of a listed security shall utilize more than 1/3rd (one-third) of the fund raised
through IPO for the purpose of loan repayment;
11. Sponsor/promoter group should maintain a minimum post-issue shareholding of thirty
percent (30%) of the total paid up capital of the company at least for three years from the date of
according consent.
12. Each director other than independent director (s) of any listed company shall hold minimum
2% (two percent) shares of the paid up capital, otherwise there shall be a casual vacancy of direct
20. Major sector in DSE
Major sectors of DSE are as follows
1. There are 46 insurance companies listed in DSE. 2. There are 41 mutual funds listed in DSE
3. There are 40 textile companies listed in DSE 4. There are 30 bank companies listed in DSE
5. There are 30 engineering companies listed in DSE. 6. There are 27 pharmaceuticals
companies listed in DSE
21. Capital market participants

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1. Stock exchanges
2. Brokers
5. DPs
6. Merchant bankers
8.Underwriters 10.
Portfolio manager 11.Mutual Funds 13. Debentures trustees
14. Credit rating agencies
15. Collective investment schemes

16. Venture capital funds

22. Maximum of bonus share.

Any kind of dividend is paid out of net income that is distributable to the shareholders. So
maximum no. of bonus share can be equal to ( net Income distributable to SH / Face value of
each share).
24. Demutualization of stock exchange.
Demutualization is the process of converting an organization from a mutual entity to a
shareholder owned corporate body. By demutualization, an exchanges mutual ownership
structure is changed to a share ownership structure, therefore segregating ownership,
management and functionality. Today, all major stock exchanges around the world are operating
as demutualized exchanges.
25. Dealer
A dealer (or principal) always trades for its own account.
A financial market mechanism wherein multiple dealers post prices at which they will buy or sell
a specific security of instrument. In a dealer market, a dealer who is designated as a market
maker provides liquidity and transparency by electronically displaying the prices at which it is
willing to make a market in a security, indicating both the price at which it will buy the security
(the bid price) and the price at which it will sell the security (the offer price)
26. Broker
A brokerage acts as a broker (or agent) when it executes orders on behalf of clients.
An individual or firm that charges a fee or commission for executing buy and sell orders
submitted by an investor.
27. Investment Bank
An Investment bank is a financial intermediary that performs a variety of services. Investment
banks specialize in large and complex financial transactions such as underwriting, acting as an
intermediary between a securities issuer and the investing public, facilitating mergers and other
corporate reorganizations, and acting as a broker and/or financial adviser for institutional clients.
28. Asset management Co.

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A company that invests its clients' pooled fund into securities that match its declared financial
objectives. Asset management companies provide investors with more diversification and
investing options than they would have by themselves.
29. Authorized Representative.
30. Market Capitalization.
Market Capitalization is the total market value, at the current stock exchange list price of the
total number of equity shares issued by a company. Market Capitalization = (No. of Issued
Share * Close Price). Recent market capitalization is as follows
Date
11-06-2015

Total
Volume
131043062

Total Market Cap. in

Taka(mn)
3190662.394

10-06-2015

155201397

3206084.805

09-06-2015

143355535

3180910.469

08-06-2015

150173698

3188355.806

07-06-2015

168167387

3231133.917

31. Capital Gainers

Last week top ten capital gainers

Sl
No.
1
2
3
4
5
6
7
8
9
10

Names
ICB Employees Provident Mutual Fund One
United Airways (BD) Ltd
Al-Haj Textile
Reckitt Benckiser(Bd.)Ltd.
Berger Paints
ICB AMCL 2nd M.F.
Standard Ceramic
Linde Bangladesh Limited
Heidelberg Cement Bd.
Glaxo SmithKline

Category

% of Change

A
A
A
A
A
A
A
A
A
A

31.82
29.21
19.56
12.97
11.89
11.11
11.11
9.74
9.47
8.86

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32. Capital losers

Last week top ten capital losers

Sl.
No.
1 Purabi Gen. Insurance
2
3
4
5
6
7
8
9
10

Names

Summit Purbanchol Power Company Limited

Summit Power
AFC Agro Biotech Ltd.
Bangladesh Submarine Cable Company Limited
BDCOM Online Ltd.
Khulna Power Company Ltd.
Summit Alliance Port Limited
Far Chemical Industries Limited
Bangladesh Steel Re-Rolling Mills Limited

Category

% of Change

-22.10

A
A
A
A
A
A
A
A
N

-16.67
-16.39
-16.26
-15.75
-15.74
-13.24
-13.24
-12.45
-12.32

33.

Turnover leader
Last week top ten turnover leaders

Sl.
Name
No.
1 United Airways (BD) Ltd
2 Khulna Power Company Ltd.
3 BEXIMCO
4 Summit Power
5 Grameenphone Ltd.
6 Beximco Pharma
7 Lafarge Surma Cement
8 United Power Generation & Distribution Company Limited
9 Bangladesh Submarine Cable Company Limited
10 Square Pharma

34. Market capital leader

Category
A
A
A
A
A
A
Z
N
A
A

Turnover in Tk.
1,576,946,000
1,551,520,000
1,399,692,000
1,195,074,000
846,120,000
758,954,000
718,132,000
701,521,000
607,858,000
567,217,000

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Sector

Average P/E

Sector

Average P/E

Bank

8.23

Jute

136.28

Cement

22.4

Miscellaneous

74.49

Ceramics sector

212.54

Mutual Fund

8.33

Engineering

43.85

Paper & Printing

32.60

Financial
Institutions
Food & Allied

20.62

Pharmaceuticals

40.87

42.53

Real state

35.31

Fuel & power

25.91

Tannery Industry

80.58

Insurance

9.89

Telecom

22.73

IT

27.16

Grameenphone Ltd is the market capital leader in DSE. At present total no. of share of GP is
1350300022. Market price of each share, closed price of last week, is BDT 333.5. So total
market capital of GP is equal to BDT 450325057300.

35. Sectorial P/E

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37. Merchant Bank

MB is a bank that deals mostly in (but is not limited to) international finance, long-term loans for
companies and underwriting. Merchant banks do not provide regular banking services to the general
public. In Bangladesh there are total 37 merchant banks.

38. Lock In period in BD

39. BSEC
The Bangladesh Securities and Exchange Commission (BSEC) was established on 8th June,
1993 as the regulator of the countrys capital market through enactment of the Securities and
Exchange Commission Act 1993. Through an amendment of the Securities and Exchange
Commission Act, 1993, on December 10, 2012, its name has been changed as Bangladesh
Securities and Exchange Commission from previous Securities and Exchange Commission. The
Commission consists of a Chairman and four Commissioners who are appointed for fulltime by
the government for a period of four years and their appointment can be renewed only for further
one term, but the condition is that age can not exceed 65 in position during the tenure. The
Chairman acts as the Chief Executive Officer (CEO) of the Commission. The Commission has
overall responsibility to formulate securities legislation and to administer as well. The
Commission is a statutory body and attached to the Ministry of Finance.
36. IPO issues in BD 2005-2015
Company ltd
ACI formulation
Active fine chemical
AFC agro
Agrani Insurance
Appolo Ispat
Argon Denims
Asia Insurance
Asia pacific gen. Ins
Baraka power
Bay leasing
BBS
BD finance
Beacon pharma
Bengal windsor

Listing Year Through

IPO
2008
2010
2014
2005
2013
2013
2009
2006
2011
2009
2013
2007
2010
2013

Company
CNA tex
Continental Ins
DACCADYE
Daffodil com
Delta Brac
Desco
Deshbandhu
Dhaka ins
Emerald oil
Envoy Tex
Family tex
Far chemical
Fareast finance
Fareast life ins

Listing Year Through

IPO
2013
2008
2009
2006
2008
2006
2011
2010
2014
2012
2013
2014
2013
2005

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Berger paint
Bifc
BSCCL
BSRML
BSRM steel
Central pharma
City gen. Ins
GSP finance
HFL
HWAWELL TEX

2006
2006
2012
2015
2009
2013
2007
2012
2014
2014

Fas finance
FEKDIL
GBPOWER
GENNEXT
Golden Harvest
Global Heavy chemi
Global Ins
Goldenson
GP
Gphispat

2008
2014
2012
2012
2013
2013
2005
2007
2009
2012

40. Mutual Fund

An investment vehicle that is made up of a pool of funds collected from many investors for the
purpose of investing in securities such as stocks, bonds, money market instruments and similar
assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt
to produce capital gains and income for the fund's investors. A mutual fund's portfolio is
structured and maintained to match the investment objectives stated in its prospectus.
41. Bond market in BD
The bond market is a financial market where participants buy and sell debt securities, usually in
the form of bonds.
Bond Market is composed of Treasury bond, Municipal Bond and Corporate Bond. This is of
two kinds- Organized and OTC markets. There are various types of bond products depending on
provisions, maturities, coupon rate, options, convertibility, etc. Bond Market in Bangladesh is
dominated by treasury debt securities. It has now only one corporate bond; but does not have any
municipal bond/debenture. In recent years, around 70 percent of the domestic savings are held in
the form of bank deposits, while only 30 percent are investments in the debt market which is
entirely dominated by government instruments. There hardly exists a corporate bond market in
the country. it has a debenture market with only a small number of well-known issuers. As of
today, only one corporate bond has been floated.
42. Money market in BD
Money market is the market for short term credits.Money market in Bangladesh is composed of
two broad groups of institutions: formal and informal. Now money market institutions include
the Bangladesh Bank at the apex, 4 natioanlised commercial banks, 32 domestic and 9 foreign
private commercial banks, 8 Islamic commercial banks,11 specialised (development)
banks.,24 non-bank financial institutions, a number of non-scheduled banks. Informal institutions
comprised mainly the moneylenders and small co-operative organisations, which are not under

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the control of the central bank. The three distinct components of organised segment of money
market of Bangladesh are the inter-bank market, call money market and bill market.
43. DSE General Index
The DSE General Index (DGEN), introduced in 2001 on the countrys main bourse, was replaced
by DSEX as the main index in 2013. Eligible stocks must have a Float-adjusted market
capitalization above 100 million BDT. Additionally, if a current index constituent falls below the
100 million BDT threshold, but is no less than 70 million BDT, then the stock remains in the
index provided it also meets the other inclusion criteria. The DSE Broad index has a base value
of 2951.91 on Jan 17th 2008 which was the index value of the DSE General Index on this date.
44. DSE 30 Index
DS30 constructed with 30 leading companies which can be said as investable Index of the
Exchange.DS30reflects around 51% of the total equity market capitalization. Eligible stocks
must have a Float-adjusted market capitalization above 500 million BDT as of the rebalancing
reference date.
45. Non Banking Financial Institutions in Bd
A non-bank financial institution (NBFI) is a financial institution that does not have a
full banking license or is not supervised by a national or international banking regulatory
agency. In BD there are 30 NBFI. NBFI differs from Banks by A bank interacts directly with
customers while an NBFI interacts with banks and governments.