Dhaka stock exchange

1.1 Overview of DSE:
The Dhaka Stock Exchange (DSE) is located in Motijheel, Dhaka, is one of the two stock
exchanges of Bangladesh. In 2015, the combined market capitalization of listed companies on
the Dhaka bourse stood at over $40 billion. The Dhaka Stock Exchange is the prime bourse of
the country. Through its nonstop highly fault-tolerant screen based automated trading system, the
exchange can offer facilities for transparent and highly efficient mechanism provisions for
secondary market activities of shares, debentures and wide varieties of other securities. The
management and operation of Dhaka Stock Exchange is entrusted on a 25 members Board of
Director. Among them 12 are elected from DSE members, another 12 are selected from different
trade bodies and relevant organizations. The CEO is the 25th ex officio member of the board.
The following organizations are currently holding positions in DSE Board:
 Bangladesh Bank.
 ICB.
 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.
 Professor of Finance Department of Dhaka University.
 President of Dhaka Chamber of Commerce & Industry (DCCI).

1.2 Department of Dhaka Stock Exchange (DSE):
The Various department of Dhaka stock exchange are as follows:

i. Listing and Membership Department
ii. Surveillance Department
iii. Inspection and Auditing

i. Listing and Membership Department:
Every company must be listed in the Stock market for working thereon and they have to fulfill
various formalities. The Listing and Membership department deals with the various formalities
of listing and membership with DSE. Now there are 559 companies are enlisted in DSE.

If any company is unable to listing with DSE then no dealings in securities of a company shall be allowed. and whose securities are listed and include provisionally listed companies. The main objective of the Surveillance function of the Exchange is to promote market integrity in two ways -  By monitoring price and volume movements (volatility) as well as by detecting potential market abuses at a nascent stage. In case of Dhaka Stock Exchange circuit breaker isn’t apply properly and that’s why during 2010 the market was crash. Surveillance Department: Dhaka stock exchange has its own surveillance system to control and monitor the market activities. Circuit Breaker Control: To maintain the financial stability Circuit Breaker process is widely used in the Stock Exchange. which has been listed in accordance with the regulations. that must be incorporated in Bangladesh under the Companies Act.Listing Section: If the companies willing to expand their market may apply for listing with the DSE.The stock exchange shall grant permission within a 3 months from the date of application. Application for listing in the stock exchange should be under Section (9) of the Securities and Exchange Ordinance -1969. . ii.  By managing default risk by taking necessary actions timely. On line Surveillance: One of the most important tools of the Surveillance is the On-line Real Time Surveillance system with main objectives of detecting potential market abuses at a nascent stage to reduce the ability of the market participants to unduly influence the price and volumes of the scrips traded at the Exchange and improve the risk management system. The main activity of Circuit Breaker are given bellow:  Maintain a fixed percentage (10%) to control the share price  According to Dhaka Stock Exchange fluctuation of share price between 10% increase or decrease. ‘Listing Company’ means a corporation. The Company has to be a Registered Public Ltd. according to the manner prescribed in the Listing Regulations.1994.

Off-Line Surveillance: The Off-Line Surveillance system comprises of the various reports based on different parameters and scrutiny thereof  High/ Low Difference in prices  % change in prices over a week/ fortnight/ month iii. Inspection and Auditing Department: There are two types of inspection likely – 1.  Preparing internal report and forwarding to SEC if needed 1. We can write down the functions of this department as follows –  Checking whether the brokers are maintaining rules and regulations under SEC.30 A. Regular Inspection – In a regular inspection.M to 2.M Working Days : Sunday to Thursday 1.4 Types of market at Dhaka Stock Exchange (DSE): There are 4 types of market at Dhaka Stock Exchange (DSE). the inspectors check whether the brokers are maintaining all the books of accounts. They are: .  Making physical visit to the broker houses as per the command of SEC or Surveillance department of DSE.30 P. Spot or Special Inspection – In this sort of inspection the inspectors make a surprise visit or it is done on a particular item.3 Treading session: Treading at DSE is performed in following session: General treading hours : 10. 2.

Odd lot spices are trade here based on pick and fill basis. Public Market Sopt Market Dhaka Stock Exchange (DSE) Block Market Odd lot Market Figure: Types of market at DSE Odd lot market: Odd lots of all instruments are trade in this market.Public Market: In this market instruments are traded in normal value. Only trading of market lot share is done through automatic matching. Spot market: instruments are traded in normal value under corporate action if any.5 DSE General Index . Block market: instruments are traded in bulk volume. Spot transactions are done through automatic matching which must be settled within 24 hours. It is a plea where bulk quantities of share are traded through pick and fill basis. 1.

The companies included in DS30 will be considered as a good company for investment.06 2015 1756. 2013 1. where thirty companies will be selected based on profitability.62 points. Here we can see that apart from 2012 the general index has increased. This index excludes the companies of Z categories and calculated on the basis of price movements.56 2016 ( up to July 27) 1771. It has a base index of 817. Year General Index 2013 8290.6 DSE 30 Index (DS 30) DS 30 Index Year Closing Index 2013 1466.41 2014 5257.61 2015 4219.31 2016 4342.7 DSE Broad Index (DSEX) . It was introduced in 28th January. 1. market capitalization and share size and the companies will be changed every six months based on the performance.31 DSE General Index was introduced in 27th November.25 2014 1803.93 DS30 is price indices. 2001.

2.21 2. Amir Khosru Mahmud Chowdhury MP. DSEX Year Closing Index 2013 4266.Chittagong stock exchange 2.DSEX will be considered as the benchmark general index of the market as it shows the exact price movements of the listed companies. the founder president established this bourse in the commercial capital Chittagong. Here we can see that the closing index has been decreased in 2015 and 2016 but increased in 2014.91 points. on 10th October 1995 floor trading was started with open cry-out auction system.2 CSE AT A GLANCE . The index has a base value of 2951. After six month.1 Overview of CSE The Chittagong Stock Exchange (CSE) is a nonprofit making organization.96 2015 4629. Now CSE is a completely automated exchange with screen based trading facility on countrywide communication network. In the backdrop of a strong need to institute a dynamic automated and transparent stock exchange in the country.2 Billion.55 2014 4864. Only 30 securities were listed on the first day trade when market capitalization stood at US$ 0.64 2016 (Up to July 27) 4538. seventy reputed business personalities under the leadership of Mr. It was incorporated on 1st April 1995 as a limited company by guarantee.

of listed companies 199 No. Contract Charge -Tk. 150 Million Paid-Up Capital Tk. of listed Mutual Funds 9 No. 38.4 Million No. T+2 to T+4 Cost of trade Commissions-025% of the Transacted value from both Buyer & seller. Authorized Capital Tk. of listed Securities 213 No. 3 from both Buyers & sellers. of listed Debentures 5 Trading Days Sunday to Thursday Settlement system Daily netting. of Members 130 No. 2.3 Types of indices of CSE • All Share Price Index • CSE-30 Index • CSCX • Sector Index Factors Considered For Construction Of CSE Indices: The following conditions are followed while calculating the All Share Price Index: .Type of Organization Non-Profit Public limited Company by guarantee having share capital.

 A newly listed scrip will be included in the index after one consecutive trading days.  A newly listed scrip will be included in the index after one consecutive trading days.  Mutual Funds and Debt securities will not 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. performance.  Mutual Funds and Debt securities will not be considered in calculating index.  Only the active scripts will be considered for calculating the 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.  Index Base Date is 30th December 1999  Base Day index 1000 The following conditions are 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.  Only the active scrips will be considered for calculating the index.  Index Base Date is 30th December 1999  Base Day index 1000 CRITERIA OF LISTED COMPANIES FOR INCLUSION IN THE SELECTIVE INDEX (CSE-30) . performance. calculation method after every six months.  Index committee will review the index – its criteria.  Index committee will review the index – its criteria. Inactive stocks not being traded for consecutive six months will not be considered in the calculation.  All share price index will be calculated only once in a day – after the trading hour in the on line system. calculation method after every six months.

Companies that did not hold their Annual General Meetings regularly will not be considered. Must have positive revenue reserve/ retained earnings. 11. Must have at least 20% free floating share capital. Free floating share capital shall mean the share capital which will exclude Govt. 12. 3. 9. In the first layer method. Must be traded for at least 20% days in trading.'s holding (other than ICB). Must be listed with the Chittagong Stock Exchange. 200 million. Company failing to pay the listing fees and/or penalty imposed under the Listing Regulations of CSE for a period of 2 years will not be considered. Minimum market capitalization must be Tk. Financial Institution falling under the problem list of Bangladesh Bank will not be considered provided such information is available from an acceptable source. 4. On being qualified on the basis of the Basic Criteria. Company having negative Earning per Share (EPS) for last two consecutive years will not be considered. this should be on listing either with DSE or CSE for a minimum period of 2 years or remained in Commercial Production for the minimum same period prior to its listing. 6. Sponsors/Directors & their Associates' holding plus other locked-in portions. Basic Criteria 1. basic criteria are considered for primary selection. Paid dividend in any of the last 2 years. the companies are required to meet the following further Selection Criteria to have the final berth in CSE-30 Index. 5. Higher Net Assets Value (NAV) per share . 10. Selection Criteria 1. 7. 2. 8. At least one company from each sector will be taken in the index if the scrip satisfies the above criteria and achieves the minimum point as evaluated on the basis of the following Selection Criteria. In case of IPO/New Issue.Two layer methods are followed for selection of listed companies in the CSE-30 Index.

its name has been changed as Bangladesh Securities and Exchange Commission from previous Securities and Exchange Commission. 5. Higher rate of free floating in equity. Through an amendment of the Securities and Exchange Commission Act. Higher percentage of market cap in terms of Paid-up Capital. 1993. Bangladesh securities and exchange commission 3. Regular payment of listing fees. 1993 as the regulator of the country’s capital market through enactment of the Securities and Exchange Commission Act 1993. 3. The Commission has overall responsibility to formulate securities legislation and to administer as well. Longer duration of continuous remaining in the CSE-30 Index. Higher rate of dividend 4. Higher liquidity in terms of trading day. . 7. 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. 3. 6.  Develop and maintain fair. but the condition is that age cannot exceed 65 in position during the tenure.1 Overview of BSEC The Bangladesh Securities and Exchange Commission (BSEC) was established on 8th June. 9. Larger number of shareholders. The Commission is a statutory body and attached to the Ministry of Finance. The Chairman acts as the Chief Executive Officer (CEO) of the Commission. 2. 8.3 The Commission's main functions are:  Regulating the business of the Stock Exchanges or any other securities market. Higher rate of Earning per Share (EPS) 3. 2012. on December 10.  Ensure proper issuance of securities and compliance with securities laws. 3. transparent and efficient securities markets.2 Mission of the BSEC is to:  Protect the interests of the investors in securities.

the Stock Exchanges and intermediaries and any self-regulatory organization in the securities market.  Dhaka Stock Exchange  Chittagong Stock Exchange Each Stock Exchange: o establishes listing requirements .  Monitoring and regulating all authorized self-regulatory organizations in the securities market. sub-brokers.  Conducting research and publishing information.  Registering and regulating the business of stock-brokers. Dhaka Stock Exchange (DSE).4 Stock exchanges Bangladesh has two Stock Exchanges. underwriters. share transfer agents. established in 1995 which is also conducted by Computerized Automated Trading System. inquiries and audit of any issuer or dealer of securities.  Promoting investors’ education and providing training for intermediaries of the securities market. trustee of trust deeds. established in 1954 where trading is conducted by Computerized Automated Trading System and Chittagong Stock Exchange (CSE). All exchanges are self-regulated. merchant bankers and managers of issues. private sector entities which must have their operating rules approved by the BSEC.  Regulating the substantial acquisition of shares and take-over of companies. registrar of an issue. monitoring and regulating of collective investment scheme including all forms of mutual funds.  Undertaking investigation and inspection. 3.  Prohibiting insider trading in securities.  Prohibiting fraudulent and unfair trade practices relating to securities trading in any securities market. investment advisers and other intermediaries in the securities market  Registering. portfolio managers.

On the trading floor. Traders congregate around a pre-ordained trading post where a specialist broker employed by an NYSE member firm behaves as an auctioneer in an "open outcry" auction environment. following a merger with the European exchange in 2007. where traders working on behalf of investors execute stock transactions. suspends or removes listing privileges of companies o monitors listed companies in compliance with legal regulatory provisions o permits dual listing 4. The parent company of the New York Stock Exchange is now called NYSE Euronext. Formerly run as a private organization. The first company listed on the exchange was the Bank of New . based on total market capitalization of its listed securities.2 How does it work: Stock. bonds. Stocks. the NYSE Euronext was acquired by Intercontinental Exchange.unlike the Nasdaq or other electronic exchanges. bonds. on the floor of the exchange. The NYSE is an auction market where brokers and specialists buy and sell securities for people by matching the highest bidding price with the lowest selling price. mutual funds. and rights are traded at 22 horseshoe-shaped installations. the NYSE has an actual trading floor at 11 Wall Street in New York. when 24 stockbrokers signed the so-called "Buttonwood Agreement" near Wall Street.1 Overview of NYSE The New York Stock Exchange (NYSE) is a stock exchange based in New York City that is considered the largest equities-based exchange in the world. 4. options. The exchange also offers electronic trading products. o approves. warrants. This is one of the most distinguishing characteristics of the NYSE -. historical trading information. the NYSE became a public entity in 2005 following the acquisition of electronic trading exchange Archipelago. The NYSE traces its origins to 1792. bringing buyers and sellers together. and order-execution products. called trading posts. exchange-traded funds (ETFs) and derivatives all trade on the NYSE.New York Stock Exchange 4. the NYSE works in continual auction mode.

600 companies are listed on the NYSE.7806 (+0.44 (+0.4:00 p. and legal and liability problems. and market services and customer relations. Operating divisions of the NYSE are broken down as follows: member firm regulation and surveillance.77 -2. market operations. 4.3 The NYSE today The NYSE is open for trading Monday through Friday. In 2011. A series of mergers have given the New York Stock Exchange its massive size and global presence. U. More than 1. The NYSE was purchased in an $11 billion deal by the Intercontinental Exchange in 2013. the NYSE is operated by NYSE Euronext. product development and planning. such as government relations.554 (+0. Specialized staff groups are assigned to other functions. The company started as NYSE before adding the American Stock Exchange and merging with the Euronext. economic research. Today.4 NYSE market trend .7306 +65.56%) NYSE US 100 FUND 9444.08%) 4. .92%) DOW-JONES INDUSTRIALS 30 STOCK 21271. and the average daily trading value hovers around $153 billion.m.42%) S & P 500 INDEX 2431.7638 +86. between 9:30 a.97 +89.York. an all-electronic stock exchange. formed by the 2007 merger of the NYSE and Euronext. Eastern Time (ET).02 (-0.m. excluding holidays designated in advance by the Exchange (click here to see the list of the NYSE Holidays).S. DESCRIPTIO LAST CHANGE(%) NYSE COMPOSITE INDEX NEW 11744. financial and office services. the NYSE and the Deutsche Börse merged.