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Background

The Chittagong Stock Exchange (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. The
Exchange comprised of twelve Board members, presided by Mr. Amir Khosru Mahmud
Chowdhury (MP) and run by an independent secretariat from the very first day of its inception.
CSE was formally opened by then Hon'ble Prime Minister of Bangladesh on November 4, 1995.

Vision
Aspire a global standard transaction place of securities and financial product.

Mission
Practice a set of core values to build competency in compliance, diversification and technology
so that an accessible platform, market confidence and wealth maximization scope can be
ensured.

Core values

Value for people


Transparency
Excellence
Harmony
Commitment
Integrity

Objectives

Increase business turnover


Modernize trading system
Ensure effective relationship management
Achieve high level of confidence & professionalism
Engage in product and market diversification
Contribute to capital market policy development
Ensure exchange related quality services

LEGAL BASIS OF CSE


After demutualization the Chittagong Stock Exchange Ltd (CSE) is registered as a Public
Limited company under Companies Act, 1994. The Board, headed by elected Chairman from the
Independent Directors, consist of 13 members comprising 7 Independent Directors, 5
Shareholder Directors including 1 Strategic Investor and the Managing Director.
CSE activities are regulated by its own Memorandum & Articles of Association, regulations and
by laws along with the rules, order and notifications of the Bangladesh Securities and Exchange
Commission (BSEC).

REGULATORY STRUCTURE OVERVIEW

FIVE YEARS INDEX & MARKET SUMMERY OF CSE


2009

2010

2011

2012

2013

Annual Turnover (Mn.


Tk.)

162,019.3

340,929.3

186,336.5

116,905.22

99,037.54

Market Days

244

244

235

238

238

1397.3

792.9

491.2

416.12

Daily Average Turnover


664
(Mn Tk.)
Securities Traded

1,338,780,000 2,129,129,000 2,515,182,000 2,863,509,674 2,763,544,046

Trades(No.)

4,403,202

7,415,220

6,059,995

4,375,574

16,372

Number of new Listings

16

23

14

14

16

Securities Listed

217

225

241

255

269

Market Capital (Mn.


Tk.)

1,470,807

2,983,929

1,972,423

1,795,716

2,033,493

CSE All Share Price


Index

13,181.38

23,448.99

14,880.37

12,854.7972

13,202.94

CSE-30 Index

10,306.87

20,988.17

13,826.94

11,021.9794

10,839.27

NON RESIDENT BANGLADESHI


A non-resident Bangladeshi is allowed to invest in stock market. In fact Non-resident
Bangladeshi enjoy more facilities than local investors in primary market. A quota of 10% of the
total amount of IPO is reserved for Non resident Bangladeshis (NRBs). Non resident
Bangladeshis may apply either directly by enclosing a foreign demand draft drawn on a bank
payable at Dhaka, or through a nominee by paying through a foreign currency deposit account
maintained in Bangladesh. Investment in the secondary market can be made through a licensed
stock broker and custodian bank .

FOREIGNER / NON RESIDENT INVESTOR


If you are a Foreigner or non Resident willing to invest in our market you can do so from outside
Bangladesh through a CSE broker or a Portfolio Manager.
For securities deposit and settlement obligation of eligible securities you may enter agreement
with a Custodian Bank and open your BO account with Custody Participants (Lists of Custodian

participant is available in CDBL website www.cdbl.bd.com. Custodian Banks in Bangladesh are


also working as Custody Participants.

CSE INVESTORS PROTECTION FUND


What protects you if your broker company becomes insolvent or it goes for winding up? That's
why the CSE Investor Protection Fund exists. The CSE, in collaboration with its TREC Holder
companies established CSE Investor Protection Fund in 1999 to compensate within define limits,
the claims of the Client against defaulting broker. You, the investor, pay no fees for getting
protection of the fund. Coverage is automatic when you open an account with a CSE TREC
Holder. However you must lodge the claims to the Trustees within 6 months from the date of
declaring defaulter of the TREC Holder.
What backs up this Protection? The fund is managed and controlled by a Board of Trustees.
CSE contributed Tk. 0.5 million as initial contribution to the fund. CSE also contribute on
quarterly basis to the Fund as its contribution the amount representing 0.50% (point five zero
percent) of the listing fee received by the CSE during the immediately preceding quarter placed
in the Fund immediately after closure of each quarter. CSE TREC Holder makes periodicals
contribution to the fund at the rate of Tk. 0.50 for every Tk. 10.00 lakh of their respective
transactions. Participants in the fund for TREC Holder are compulsory.
There is a limit on the amount of coverage. The compensation paid to an individual investor shall
not exceed a sum of Tk. 50,000/- (Taka Fifty Thousand Only) but the Board of Trustees may, at
any time, in consultation with the Board of Directors may increase the limit.

CSE AS A DEPOSITORY PARTICIPANT


CDBL Started

2004

DP CSE Started

19th Jan, 2004

No. of Depository Accounts

26193 as on 18th October , 2011

No. of Demat Processed

Almost all the companies

No. of Clearing Member Accounts

27

No. of Delivery Instructions Processed

0.13 million instructions

No. of Corporate Accounts

remarkable

No. of Branches

2 ( Dhaka and Sylhet)

CSE ALL SHARE PRICE INDEX


A good market representative index should involve:

Scientific calculation formulas with clear adjustment procedure


Logical scrip selection criteria
Distinct base date
Meaningful base value

The only index the CSE has been maintaining since 10th October 1995 is a ALL SHARE PRICE
INDEX using Chained Paasche method. It faces question of clarity. This index was subject to
unusual ups and downs and without a distinct base value. Therefore in need of a clean slate CSE
finds the date 1 January 2000 is the best date to start new Indices:
The following conditions will be followed while calculating the All Share Price Index:

All Share Price Index does not necessarily mean that all the listed stocks should be considered
for calculating the index. Inactive stocks not being traded for consecutive six months will not be
considered in the calculation.
Only the active scrips will be considered for calculating the index.
Mutual Funds and Debt securities will not be considered in calculating index.
A newly listed scrip will be included in the index after five consecutive trading days.
Only normal trades should be considered in calculating index.
All share price index will be calculated only once in a day - after the trading hour in the on line
system.
No changes in number of shares will be allowed during VECTOR session.
Index committee will review the index - its criteria, performance, calculation method after every
six month.
Index Base Date is 30th December 1999
Base Day index 1000