Dept.

of Finance & Banking

Course code: FB 309
Course Name: Financial Markets and Institutions.
An Assignment on: “Activities of Dhaka Stock Exchange”
Logo of the Group:

Submitted To:
Chandon Kumar Pal
Lecturer,
Dept. of Finance and Banking.
Jatiya Kabi Kazi Nazrul Islam University.

Submitted By:
Group Name: Finnos
Group List: 2nd
Session: 2015-2016
Dept. of Finance & Banking
Jatiya Kabi Kazi Nazrul Islam University

Date of submission: 19/02/2019

Cover Letter
19/02/2019
Dept. of Finance and Banking
Session: 2015-16
Subject: “An Assignment on Activities of Dhaka Stock Exchange”
Dear Sir,

We beg most respect and want to inform you that an assignment

which is given to perform has been completed through group effort.
We covered all the information related to “Activities of Dhaka Stock
Exchange”.

So, we welcome to you to accept this task and evaluate it.

Sincerely
Group no. 02
Id: 16132613, 50, 51, 49 & 32.
 Name of the Group Member:

Serial No: Name Of The Member: ID:

1. Md. Salim Uddin (Group 16132651

Leader)

2. Md. Mehedi Hasan 16132613

3. Maksuda Akter 16132650

4. Md. Sarowar Hossain 16132649

5. Jarmin Akter 16132632

Stock Exchange Definition:
A stock exchange is a centralised location where the shares of publicly traded
companies are bought and sold. Stock exchanges differ from other exchanges
because the tradable assets are limited to stocks, bonds and exchange traded
products (ETPs).

Dhaka Stock Exchange:

Dhaka Stock Exchange located in Motijheel , Dhaka is one of the two stock
exchanges of Bangladesh (the other being the Chittagong Stock Exchange). In
2015, the combined market capitalisation of listed companies on the Dhaka bourse
stood at over $40 billion.

History:
First incorporated as East Pakistan Stock Exchange Association Ltd on 28 April
1954 and started formal trading in 1956. It was renamed as East Pakistan Stock
Exchange Ltd on 23 June 1962. Again renamed as Dacca Stock Exchange Ltd on
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 formula for calculating DSE all share price index was changed
according to IFC on 1 November 1993. The automated trading was initiated on 10
August 1998 and started on 1 January 2001. A Central Securities Depository
System was initiated on 24 January 2004.
Logo of DSE:

Head Office of DSE:

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.

Products of DSE:
Currently two types of Equity instruments are tradable at DSE -
Equity:
These are ordinary shares of listed companies. For a certain period from the IPO
date certain number of shares are 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.
Mutual 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 sponsors name.
Currently three types of Debt instruments are tradable at DSE.
Corporate 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.
Treasury Bonds:
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.
Debentures:
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.

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
President of Dhaka Chamber of Commerce & Industry.
Board of Directors:
Professor Dr. Abul Hashem
Chairman of DSE &
Vice Chancellor,
Anwer Khan Modern University (AKMU)

Justice Siddiqur Rahman Miah

Director of DSE
Mrs. Monowara Hakim Ali
Director of DSE
Fomer Director, FBCCI

K.A.M. Majedur Rahman

Managing Director of DSE
VISION & MISSION:
VISION:
To be the leading exchange in the region and a key driver of economic growth
with state-of-art technology and world class service to ensure highest level of
confidence among stakeholders.
MISSION:
Proactive approach to keep pace with continuous technological advancement.
Contributing to country's economic growth through creation of wealth,
facilitating access to capital and penetrating untapped market.
Superior corporate governance to enhance confidence of investors, regulators,
issuers and intermediaries.

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 by-
laws along with the Securities and Exchange Ordinance - 1969, Companies Act -
1994 & Securities & Exchange Commission Act - 1993.
Objectives:
Dhaka Stock Exchange shall endeavor to achieve the following objectives within
2020:
Commercial:
• Achieve a sustainable average daily turnover of BDT 25 billion.
• Ensure steady domestic and offshore institutional investments of at least
three fourth of the total investments in the market.
• Attract more foreign investments to attain a steady level of at least 30% of
the total market capitalization.
• Double the total number of listed securities (other than Government Bills
and Bonds).
• Increase depth and liquidity of bond market, including bringing in the
Government Securities under trading net.

Trading:
The Dhaka Stock Exchange is open for trading Sunday through Thursday between
10:30 am – 2:30 pm BST, with the exception of holidays declared by the Exchange
in advance. In the month of Ramadan, the exchange is open for trading between
10:00 am – 2:00 pm BST.
artificially to benefit a handful of players at the expense of the big players.

2010–11 crash:
The bullish market turned bearish during November 2010, with the exchange
losing 1,800 points between December 2010 and January 2011.[2] Millions of
investors have been rendered bankrupt as a result of the market crash. The crash is
believed to be caused artificially to benefit a handful of players at the expense of
the big players
The major functions:
1. Listing of Companies (As per Listing Regulations).
2. Providing the screen based automated trading of listed Securities.
3. Settlement of trading (As per Settlement of Transaction Regulations).
4. Gifting of share / granting approval to the transaction/transfer of share
outside the trading system of the exchange (As per Listing Regulations 47).
5. Market Administration & Control.
6. Market Surveillance.
7. Publication of Monthly Review.
8. Monitoring the activities of listed companies (As per Listing Regulations).
9. Investors grievance Cell (Disposal of complaint bye laws 1997).
10. Investors Protection Fund (As per investor protection fund Regulations
1999).

About DSE Training Academy:

DSE Training Academy (DTA) has started its journey since September 10, 2007
inaugurated by the then Finance and Planning Adviser Dr. A. B. Mirza Md. Azizul
Islam. The core mission of DSE Training Academy is Human Resource
Development in the field of Capital Market. Presently, there are 2 different venues
under the Academy; one at DSE Annex Building-2, 158-160 Modhumita Building
8th (Floor), Motijheel C/A, Dhaka-1000 and the other one at 5th floor, 9/G,
Motijheel C/A, Dhaka-1000 which has been the extension part inaugurated by Dr.
Mashiur Rahman, Finance Adviser to the Prime Minister on Economic affairs on
2nd February 2010.
Objectives:
To educate and develop professionals for the securities industry in Bangladesh.
To function as a center for creating investor awareness through research and
training
To contribute to the orderly and healthy development of Capital Market
To disseminate information about Local and International Capital Market
To offer training programs required for the registration of target groups of
Capital Market professionals.
To offer intermediate-level and advanced training for the stakeholders of Capital
Market.
To offer compliance and governance related training to Issuer firms.
To offer training for DSE Officials on skill development.

References:
1. Jump up to: "Recent Market Information". DSE. 4 September 2018.
2. Jump up to: "Probe panel finds massive manipulation at Bangla stock
market". India Times. 7 April 2011. Retrieved 18 October 2011.
3. https://en.wikipedia.org/wiki/Dhaka_Stock_Exchange.
4. https://www.google.com/search?q=logo+of+dse&sourceid=chrome&i
e=UTF-8.
5. https://www.google.com/search?ei=AJthXIXROY63rQGwn6yIBQ&q
=head+office+of+dse&oq=head+office+of+dse&gs_l=psy-
ab.3...34596.41841..42568...0.0..0.475.3084.0j10j3j1j1......0....1..gws-
wiz.......0i71j0i7i30j0i8i7i30j0i7i5i30j0i7i10i30j0i30j33i10.jIpQE99G
rg4.
&
6. Applied our own experiences.