Bangladesh stock exchange

There are two stock exchanges functioning in Bangladesh the Dhaka Stock Exchange (DSE) and the Chittagong stock exchange (CSE). In both of them, trading is done using computerized automated systems. Both the exchanges come under the private sector, and are self regulated and must have their operating procedure approved by the Securities and Exchange Commission (SEC).

DSE or the Dhaka Stock Exchange: The Dhaka stock exchange, the bigger of the two, was established in 1952, when the necessity of a fresh stock exchange was felt by the local authorities after the prohibition on the trading of Pakistani shares in the Calcutta stock exchange, was enforced. There was also a proposal to start a branch of Karachi stock exchange in Dhaka, though it was dropped due to the opposition from the local representatives and thus DSE came into existence with the distribution of membership cards worth Rs.2000 among the members. It was at first named as East Pakistan stock exchange ltd. and it started trading in 1956. Its name was changed into Dhaka stock exchange ltd. in 1964.

After a gap of five years starting from 1971, when the trading was temporarily suspended owing to the liberation war, it resumed functioning in 1976. DSE All Share Price Index was initiated in September 1986 and later in November 1993, the working formula for computing the DSE All Share Price Index was modified conforming to the IFC regulations. The automatic trading was introduced in DSE in August 1998 and later in January 2001, the DSE 20 Index was introduced and in January 2004, the central depository system started functioning.

The DSE now functions as a public company currently having 195 members. It works in accordance of the Company Act 1994, security and exchange commission Act 1993, security and exchange commission regulation 1994 and security exchange regulation 1994. The DSE is managed by a council consisting of 24 members of which 12 are chosen members and the rest are to be chosen from the following: Bangladesh Bank, Ministry of Commerce, ministry of Finance, Ministry of Law, Ministry of Industries, President of the institute of chartered accounts, president of the supreme court Bar association, President of bankers and insurance society, president of metropolitan Chambers of commerce and industries, President of federation of Bangladesh chambers of commerce and industries, and chairman of economics/finance department of Dhaka university.

At present, the main activities in the DSE include the listing of companies, trading settlement, undertaking screen based automated trading of listed securities and shares, monitoring and controlling of the market, sanctioning the transactions, supervision of the functioning of the listed companies to check whether they are in accordance with the proposed regulations, looking into and managing of complaints as and when they arise, and regularly updating the public about the activities and present status of the listed companies.

Main investors in DSE: The following are amongst the top investors in the Dhaka Stock Exchange.

Bangladesh online
Southeast Bank
Jamuna Bank Ltd.
Daffodil Computer Ltd.
Prime Bank
Islami Bank
Beximco Pharma
Information Services Network
Export Import Bank of Bangladesh
Agni system limited

Top companies listed:

National Life Insurance
ACL limited
Gachihata Aquaculture
Daffodil Computers Ltd.
Keya cosmetics
Jamuna Bank Ltd.
Agrani Insurance Co. Ltd.
Chittagong Vegetable Bangladesh Plantation

Chittagong stock exchange (CSE) : The second stock exchange in Bangladesh, the CSE, began functioning in October 1995 in the city of Chittagong after getting permission of the SEC to establish the same. Being managed by an independent secretariat from the beginning, the exchange consisted of twelve board members, headed by parliament member MR. Amir Khosru Mahmud Chowdhury. The floor trading started from 10^th October 1995 and CSE became a corresponding member of the WFE (World Federation of Exchanges). The internet trading service was initiated in May 2004 and by July, the same year, over-the counter market was opened.

Legally, CSE is a not-for-profit public limited company. Its members are all corporate bodies. The secretariat of the CSE functions independent of the board and it is headed by a chief executive officer. To guarantee transparency, the representation in the board of the brokers and non-brokers is kept in equal proportion.

Mission and objectives: The Chittagong stock exchange has been established with the aim to set up a dynamic and transparent stock exchange in the country which thrives to work in the direction of building an efficient market in line with global standards, to encourage investment in the country. Its goal is to help committed entrepreneurs to conjure capital and speed up the business growth thereby improving the economy as a whole to be able to compete in the global market.

The departments in CSE and their functions:

Systems department:The systems department manages the communication network and answers to queries of customers. It organizes the trading and the Visa settlement system. Apart from this, the system department makes daily reports and statistical data available for public and also supports internal users and train new users as well.
Clearing, settlement and Dp: Activities like the delivery of shares, cheques and other documents to the members are done through this department. It is responsible for the filing and withdrawal of stock from vault and correcting any defective delivery procedures. Services such as the opening of BO accounts are undertaken by this department.
Market operations department: this department provides updated information about the various companies to the public. It provides online surveillance and broadcast information which may have an effect on the share prices.
Listing, Marketing and Education department : In addition to arrange training programs, it acts as a link to the Securities and Exchange Commission, and monitors the rules and regulations constantly.
Finance and administration department: It manages CSEs finances and also the tax deductions and payments.
Research, Corporate development and information : Manages library materials, press contents and produce publications of CSE.

Bangladesh stock exchange

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