Trading system of

Dhaka Stock
Exchange (DSE)

Course Teacher:
Mohammad Mohin Uddin
Mohammad Kamrul Ahsan
55th Batch Assistant Professor
FIN-4 Department of Business Administration
 What is Stock Exchange?

A stock exchange is a centralized A stock exchange is where different The general public can trade shares
location that brings corporations financial instruments are traded, on the secondary market after a
and governments agencies, so that including equities, commodities, and  company's initial public offering
investors can buy and sell equities. bonds. (IPO).

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 Dhaka Stock Exchange-DSE

The Dhaka Stock Exchange Ltd. is registered as a Public Limited Company under the
Companies Act 1994. It is a self-regulatory organization, and its activities are regulated by:

• Memorandum & Articles of Association,

• Own (set of) rules and regulations and bylaws,
• Companies Act 1994,
• Securities and Exchange Ordinance 1969,
• Securities and Exchange Rules 1987 and
• Other relevant laws of Bangladesh.

DSE Market capital is about

$72.1billion*

*Wikipedia website

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 Journey of Dhaka Stock Exchange (DSE)

Start of formal Started automated

Renamed as DSEL Start CDBL
Trading Trading

1956 May 1964 Aug 1998 Jan 2004

Incorporated East Renamed as Started All share price Started DSE-20 and
index calculation index general index
Pakistan SEAL* EPSEL** calculation
April 1954 June 1962 June 1986 Jan, Nov 2001

*SEAL- Stock Exchange Association ltd, **EPSEL- East Pakistan stock exchange ltd,
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 Journey of DSE cont.

DSE regulation Started DSEX Achievement of ISO Inaugurated

introduced Sariah index 9001;2015 SME platform
2006 Jan 2014 Jul 2018 Apr 2019

Introduced book Introduced circuit DSE got full

Reintroduced all share
membership of
price index (DSI) building Method breaker in trade
WFE***
Mar 2005 2010 Apr 2015 Jun 2017

***WFE-World federation of Exchange

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 Functions of DSE

1 2 3 4 5 6 7 8 9 10 11

Listing of Providing the Settlement of Gifting of Market Market Publication of Monitoring Investors Investors Announcemen
Companies screen based trading. share / Administratio Surveillance Monthly the activities grievance Protection t of Price
(As per automated granting n & Control. Review. of listed Cell. Fund. sensitive
Listing trading of approval to companies. information of
Regulations). listed the companies.
Securities. transaction

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 Mission and Vision

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 with continuous technological advancement.
• Providing highest standard of service through efficiency improvement and introduction of new products.
• 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.

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 Regulatory structure overview

Corporate
member of
DSE
DSE
BSEC
Ministry of
finance
Parliament
of PRB

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 Different Indices
• Dhaka Stock Exchange Board Index.
• DSEX Total equity is about 97% of total market
DSEX:
capitalization
• Need Company capital >100MBDT to be listed.

• Dhaka Stock Exchange Shariah index

DSES: • It's a subset of DSE and includes the index that comply
with Shariah, the Islamic religious law.

• The price Index of top 30 companies.

• DS30 Total equity is 51% of total market capitalization
DS30:
• Need Company capital >500MBDT to be listed.
• Avg Quarterly transaction need to be at least 5MBDT

• CNI-DSE Select Index (CDSET) to attract foreign portfolio

investment in the country.
CDSET:
• Collaboratively designed by DSE and Shenzhen Securities
Information Company Limited (SSICL)

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 Share categories
A- Category:
The company which are regularly holding Annual General Meeting (AGM) and declare 10% or more than 10%
dividend at the end of the year.

B- Category:
The company which are regularly holding Annual General Meeting (AGM) and declare less than 10% dividend
at the end of the year.

N- Category:
All newly listed companies except Greenfield companies are being placed in this category and their settlement
system would be like B category companies. At the end of financial year this category shares categories into
A,B or Z group depending on their performance.
Z- Category:
These group of companies do not hold their AGM in regular basis and incapable to provide year end dividend
or suspended their production for the last 6 months.

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 Surveillance at DSE
Market Surveillance ensures orderly market considering regulatory compliance and detects manipulative and abuse trading
pattern.

Surveillance activities at the Exchange are divided

broadly two major segments-
Review
• Price Monitoring: Monitoring mainly price media
information
movement/ abnormal price movement or
volumes.
• Online surveillance Other
Surveillance
• Offline surveillance Method
• Position monitoring: Monitor abnormal positions
of member, dealers, institutions and general Rumor Market
investors in order to default risk. verification intelligence

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THANK YOU
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