You are on page 1of 57

Problems & Prospects of Bangladesh Capital Market

Bangladeshi Share Market is facing a discomfited situation now. Every day the prices and
values of different shares are falling down. The potential investors in Dhaka Stock
Exchange and Chittagong stock exchange are being depressed by the continuous price
falling.
“But what are the problems behind it?
& what are the solutions of it?”

As we started our discussion about the problems and prospects of Bangladesh capital
market we have to illustrate some terms and conditions which will make the discussion
simple to understand. And the terms are:












Capital market
Securities market
Flotation cost
Brokers and dealers
Stock exchanges
Trading system
Fundamental Analysis
Listed company or
unlisted company
Stock
Face value (FV) of a
stock
The market value (MV)
of a stock










Market lot (ML)
Earning Per Share (EPS)
Price Earning Ratio
(PER)
Dividend
Stock dividend
Circuit Breaker
Volume
High Price
Low Price
Volume
Trade
52 Weeks Range
Private Placement

Capital Market: The capital market is the market for the instruments representing long
term funds requirement of the corporation. It consists of sprawling complex of
instruments and mechanism whereby intermediate term and long term funds are pooled
and made available to business, government, and individuals.

1

 Characteristics of Capital market
o The place where debts and equities are traded
o Scope of which is wide
o Sector from where new funds come
o Both negotiated and open market are used
o Demand for the capital market instruments come from individuals &
households; business & financial corporation; central govt.; local
govt.; and foreign govt
o Transaction in open market influence the price and yields of long term
instruments immediately
 Capital Market Instruments
o Govt. securities with maturity;
o Long term debt owned by the government;
o Privately owned long term debt
o Long term corporate bonds including corporate mortgage debt;
Common stock and preferred stock etc .
Securities Market: One of the broad parts of the capital market, under which the
determination of price combines with firm’s action and reaction in the whole capital
market. This market is of two types:
i.
ii.

Primary Market
Secondary Market

i.

Primary Market: primary market is a security market where new
securities are being sold for the first time. It is a market where new issues
of common stock, preferred stock, or bond are sold by the govt. or firms to
acquire new capital. A primary issue occurs when the issuer gets the
proceeds from an initial public offering (IPO) of stocks or bonds. And an
intermediary that finds out the buyers for IPOs is termed as **investment
banker.

ii.

Secondary Market: Primary issues of securities occur frequently. When
an investor buys a security, the seller is another investor. Such trade occurs
in what are called secondary market. When investment bankers underwrite
IPOs in the primary markets the issuer receive the cash proceeds. Here one
investor sells securities to another and the issuing firm is not involved. The
securities continue to trade between investors in a market called secondary
market.

2

 Activities of Secondary Market
o It brings the investors together so that transaction can be made
immediately at a price that varies little from transaction to transactions
o It gives investors the means to trade existing securities.
o It continues to maintain the marketability of the tradable assets.
o It simulates new financing by encouraging the investors to invest in
IPOs
o Being a self regulatory organization, secondary market regulate and
monitor the activities of members, employees, m listed firms.
 Forms of secondary market:
i.
ii.
iii.
iv.

Organized stock exchanges – listed securities are traded
OTC market – unlisted securities are traded
Third market
Fourth market

Investment Banker: A firm or a financial intermediary specializing in the sale of new
securities to the public investors along with advisory functions, administration functions,
underwriting functions, distribution functions, pricing functions.

3

Flotation Cost: The underwriter offering the highest net cash proceeds for the IPOs gets
the deal. Investment bankers make profits by selling IPOs at price above what they paid
for them. The difference between buying and selling prices is called the spread. This
spread is divided into 3 parts
o The originator or managing underwriter keeps a certain point for
originating and managing the syndicate
o The entire underwriting group earns a specific percentage of total profit
o The numbers of the selling group earn the remaining portion of the total
profit
Brokers and Dealers: A broker is an intermediary who works as a media to bring
together buyer and seller. And it takes commission form the buy/sales made. A broker
must be listed member of any stock exchange
Stock Exchanges: When securities are traded between investors, issuers no longer
receive any cash proceeds. Investors usually initiate securities purchases in secondary
markets by calling a security brokerage house. In our country there are two stock
exchanges:
i.
Dhaka Stock Exchange
ii.
Chittagong Stock Exchange
Stock: Stock or Share is the smallest part of ownership of an asset/company/firm.
Face value (FV) of a stock: This is the value assigned to a smallest part of ownership of
a company.
For example in case of the previous example I gave the Face Value of a share of
that shop is 100tk.
Market value (MV) of a stock: When someone sees a good business prospect of a
company then he may be will to buy it other than the face value. It may be a higher price.
For example at present SALAM still mill's stock is trading around 190tk. So its
market value (MV) is 190tk now.
Earning Per Share (EPS): Earning per share indicates how much profit is earned per
share.
For example if GQ ball pen is divided in 10 million stock and GQ ball pen
makes a profit of 100million Tk then earning per share of GQ company is
(100million Tk / 10 million shares = 10tk.) 10tk. EPS is calculated through
dividing the total profit buy total number of securities/stock.

4

Market lot (ML): Every firm has millions of stock in the market. If every piece of stock
is traded separately it will generate tedious clerical job and the system won't support so
many trades per day. Moreover the trading cost per trade will be intolerable. To face such
problem stocks of different companies are traded in bunches. Then every bunch is traded
in the market.
Every bunch is called a lot (market lot).
For example you have to buy at least 50 stocks at a time in a bunch if you want
to buy GQ ball pen's stock. So the market lot (ML) gor GQ ball pen's stock is 50.
Price Earning Ratio (PER): It indicates that what is the price of a stock in relation to
EPS. Say GQ ball pens price is now 140 Tk in the market and it's EPS is 10tk. Then it's
price earning ratio (PER) is (140tk/10tk) 14 times. It also indicates that if someone buy a
GQ ball pen stock for 140tk today the company will earn the same amount of earning for
that stock in 14years
Dividend: Its the portion of profit given to the shareholders. Dividend is usually
expressed in percentage basis or per share basis.
For example now if GQ company declares a 80% dividend to the shareholders it
indicates that every shareholder will get 8tk per share. Dividend is calculated on
Face Value not on the market value. The dividend declaration depends on the
profit earned by the company, companies pay out ratio, investing policy etc.
Stock dividend: In some cases company may earn some profit. But it may need some
extra money for further growth of the company. In that case the company may retain the
profit earned. It wont declare cash dividend. Rather it will declare stock dividend. In that
case an investor will get a few more stock of that company for free.
For example if GQ declares a 80% stock dividend it means if you hold 100stock
of GQ ball pen you will get 80stock for free. This is a very nice system for
company growth. In this system company can retain its needed cash for further
investment and stock holders also get some benefit.
Right issue: In some cases business may need immediate money in the middle of the
year or for any reason. May be it need some more cash for business growth. In that case
the company can issue fresh share in the market. But according to regulation the existing
shareholders have the priority to buy the shares. So when the company decides to issue
new shares in the market at first it offers the shares to existing shareholders of the
company. As existing shareholders get the shares according to their right it is called right
issue. But if the existing shareholders decline to buy the new shares
the company can issue the shares to general public as fresh IPO

5

and the circuit breaker is 10%. Trade: It indicates how many transaction of a single stock took place in a day. It means Power Grid will not rise more than 10% today even it won't fall more than 10% today. Low Price: This is the lowest trade price in a single trading day. Volume: Volume indicates how many stock of a specific company is traded in a single trading day. But as you bought the stock for 230tk your return is not 23% rather your return is 2.3tk). Usually it is updated every month on DSE website.Dividend yield: Dividend yield is the return calculated on your buying price resulting from declared dividend. 52 Weeks Range: It means that what was the highest and lowest price of a stock in last 52 weeks.3/230=1% only.3tk as dividend (Face value of ACI stock is 10tk so 23% on 10tk. This system is introduced to tackle unusual volatility in the stock market. is 2. 6 . A company can offer stock to the public again and again. In that case you will receive 2. LTP: Last Trade Price of a specific company in a day. The latest trade took place in this price. When any company offers their stock to general public for the first time it is called Initial Public Offering. If ACI company declares a 23% dividend and you buy ACI stock for 230tk. IPO: Initial Public Offering. So in a single day its highest price can be 710+710*10%=781tk and the lowest price will be 639tk. This is called dividend yield Circuit Breaker: This is an automated system introduced by both DSE and CSE. For example if today (28/03/2008) ACI's 52 weeks range shows 62-235 it means that ACI stock was traded lowest at 62 tk in last 52weeks and highest 235tk in last 52weeks. For example say previous days close price of Power Grid Company was 710tk. Those are called Public Offering Private Placement: When a company sells it's shares to institutional or individual investors through private negotiation rather offering their shares to the public it is called private placement. In this system a specific stock can not increase or decrease more than a specific percentage point. High Price: This is the highest price of a stock in a single trading day.

trend of any stock and invest in it so that when the price will go up he can make profit. NAV etc.) In this case peoples try to identify the true value of a stock rather the price trend. Fundamental analysts try to identify this value. Central Depository Bangladesh Limited (CDBL):as incorporated as a public limited company on 20th August 2000 to operate and maintain the Central Depository System (CDS) of Electronic Book Entry. If you cant find that post just type the topic. Listed company or unlisted company: Companies or firms which are listed with stock exchanges are called listed public limited company. low. And s/he invests in that particular stock in advance to reap profit from increased value when the market will recognize the value. Just read that. You'll get it. high. changing the ownership without an physical movement or endorsement of certificates and execution of transfer instruments. price trend. Intrinsic Value: This means that what is the true value of a stock. When someone identifies a stock is undervalued s/he consider that market will recognize the value shortly and the price will go up. 7 . People try to identify near-future-up. close etc). as well as various other investor services including facilitation of the secondary market trading of Treasury Bills and Government Bonds issued by the Bangladesh Bank. Comparative Valuation: I wrote on it earlier.Technical Analysis: Technical analysis means analyzing a stocks price trend based on its recent past trade pattern (investigating volume. On the other hand firms/companies those are not listed with any of the stock exchange un-listed companies.(EPS. Dividend. recording and maintaining securities accounts and registering transfer of securities."Comparative Valuation" in the search box and search it. Fundamental Analysis: This sort of analysis is done based on the company fundamentals.

Pakistan. forged and duplicate securities. investors have accounts in the depository and are able to move securities and settle stock exchange transactions by an electronic update of their accounts. a joint venture company setup by banks. Virtually all established markets have depositories including India. The instantaneous delivery through electronic book entry will result in immediate transfer of ownership. lost. forged and duplicate share certificates. Risk of damaged. Tedious procedure involved in pledging of physical securities to raise capital.What is a depository? A depository is like a bank for shares instead of money. Japan. will also reduce the costs of the investing public. resulting in:       Lengthy delays in delivery settlement and transfer of securities. Sri-Lanka and Thailand. CDBL. Central Depository Bangladesh Limited (CDBL). Considerable time involved in dispatching cash dividends and bonus shares. Instead of holding shares in the form of certificates. stock exchange. Malaysia. Asian Development Bank and other institutions operates the Central Depository System (CDS) in Bangladesh. which presently can take over a month. Serious problems associated with physical custody. lost. CDBL. UK and USA. 8 . The core service of a depository is the efficient delivery. in the long term. settlement and transfer of securities through a computerized book entry system. by converting physical certificates into electronic form. will eliminate the risks of damaged. What is a depository needed? The need for a depository arose from shortcomings in the present settlement system. Tedious procedures for verification of securities and transfer deeds.

sub-brokers. 1993. transparent and efficient securities markets. portfolio managers. o Conducting research and publishing information 9 . Functions the SEC: o Serve as the members of the Commission and supervise its management. The Chairman and Members of the Commission are appointed by the government and have overall responsibility to administer securities legislation. Mission of the SEC: o Protect the interests of securities investors. trustee of trust deeds. the Stock Exchanges and intermediaries and any self regulatory organization in the securities market. o Prohibiting fraudulent and unfair trade practices relating to securities trading in any securities market. o Undertaking investigation and inspection. investment advisers and other intermediaries in the securities market o Registering. 1993 under the Securities and Exchange Commission Act. o Act as an administrative tribunal for decisions on the capital market. o Ensure proper issuance of securities and compliance with securities laws. o Promoting investors’ education and providing training for intermediaries of the securities market. monitoring and regulating of collective investment scheme including all forms of mutual funds o Monitoring and regulating all authorized self regulatory organizations in the securities market.Securities & Exchange Commission Introduction: The Securities and Exchange Commission (SEC) was established on 8th June. underwriters. o Prohibiting insider trading in securities o Regulating the substantial acquisition of shares and take-over of companies. inquiries and audit of any issuer or dealer of securities. share transfer agents. The Commission is a statutory body and attached to the Ministry of Finance. o Provide policy direction to industry and staff and promulgate legally binding rules. registrar of an issue. Commissions’ main Functions o Regulating the business of the Stock Exchanges or any other securities market o Registering and regulating the business of stock-brokers. merchant bankers and managers of issues. o Develop and maintain fair.

Settlement of trading. As of 31 December 2007. Central Depository System was initiated in 24 January 2004. . Companies Act 1994 & Securities & Exchange Commission Act.Gifting of share / granting approval to the transaction/transfer of share Outside the trading system of the exchange (As per Listing Regulations 42) .Publication of Monthly Review.Market Administration & Control.Dhaka Stock Exchange Introduction: Dhaka Stock Exchange (Generally known as DSE) is the main stock exchange of Bangladesh.Investors grievance Cell (Disposal of complaint bye laws 1997). Dhaka stock exchange is the first stock exchange of the country. Again renamed as Dhaka Stock Exchange Ltd in 13 May 1964 After the liberation war in 1971 the trading was discontinued for five years. 1969. It is located in Motijheel at the heart of the Dhaka city.Market Surveillance. 1993. It was renamed as East Pakistan Stock Exchange Ltd in 23 June 1962. As of November 16 2009. The automated trading was initiated in 10 August 1998. In 16 September 1986 DSE All Share Price Index was started. . 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 bye-laws along with the Securities and Exchange Ordinance.(As per Settlement of Transaction Regulations) . In 1 January 2001 DSE 20 Index was started. .Listing of Companies. (As per Listing Regulations) . the Dhaka Stock Exchange had 350 listed companies with a combined market capitalization of $26.1 billion. . It was incorporated in 1954. setting another new high at 4148 points. History It first incorporated as East Pakistan Stock Exchange Association Ltd in 28 April 1954 and started formal trading in 1956. Functions: .Providing the screen based automated trading of listed Securities. .Monitoring the activities of listed companies. the benchmark index of the Dhaka Stock Exchange (DSE) crossed 4000 points for the first time.(As per Listing Regulations). The formula for calculating DSE all share price index was changed according to IFC in 1 November 1993.Investors Protection Fund (As per investor protection fund Regulations 10 . In 1976 trading restarted in Bangladesh. .

Odd lot Market: Odd lots of all Instruments are trade in this market iv. Public Market: In this market instruments are traded in normal volume ii. billing and assigning settlement instructions Settlement: the process of overseeing that delivery of all instruments to the buyer and payment of all moneys to the seller has occurred before removing the trade from the settlement pool. Spot Market: Instruments are traded in normal volumes under corporate action if any iii. Block Market: Instruments are traded in bulk volume The Clearing and Settlement: The Clearing and Settlement module provides the management of trade from the point of entry into the Settlement Pool trade database until it has been delivered. Clearing: participant trade reporting. Types of Markets in DSE: i.1999) . settled and removed from the Settlement Pool. affirmation. It consists of three major business processes. 11 .Announcement of Price sensitive or other information about listed companies through online.

Here D for Debentures. T+3 basis). 1998 shall remain suspended from 19th March 2003 until further order". The above cycle is valid for A. Block & Odd-lot Market with trade for trade settlement facility through DSE Clearing House on T+1. A new directive was made by SEC dated on 18th March 2003 "Adjusted due position mechanism for settlement of scrip only as provided by regulation 4(1) of settlement of Stock Exchange Transaction Regulations. Block & Odd-lot Market with trade for trade settlement facility through DSE Clearing House on T+1. Block & Odd-lot market. T+3 basis). 12 . "A" and "DA" are marked in BASES columns for Non-Demat & Demat instrument respectively in our TESA Trading Software. T+3 basis). N Group: Number of Instrument is 11(Trading in Public. B. G Group: Number of Instrument is 0 (Trading in Public. Here is a complete picture of the settlement system for all of our 427 Instruments in Five (5)groups in the Four (4) markets Day T: Both Brokers & DSE Sign Contract T+1 Selling Broker Securities T+3 Buying Broker Cheque (in favour of DSE) DSE Clearing House Cheque (in favour of DSE) T+3 Securities A Group: Number of Instruments are 338 (150 + 8D + 22M + 158TB). Block & Odd-lot Market with trade for trade settlement facility for scrip only through DSE Clearing House on T+1. G & N category instruments traded in Public. Block & Odd-lot Market with trade for trade settlement facility through DSE Clearing House on T+1. "G" and "DG" are marked in BASES columns for Non-Demat & Demat instrument respectively in our TESA Trading software.Regulation 4 of the Settlement of Stock Exchange Transactions Regulation 1998 has been given effect time to time. "B" and "DB" are marked in BASES columns for Non-Demat & Demat instrument respectively in our TESA Trading software. B Group: Number of Instruments are 44(Trading in Public. "N" and "DN" are marked in BASES columns for Non-Demat & Demat instrument respectively in our TESA Trading software. M for Mutual funds & TB for Treasury Bonds (Trading in Public. T+3 basis).

G. T+9 basis). Day T: Both Brokers & DSE Sign Contract Selling Broker T+1 Securities T+9 Buying Broker Cheque (in favour of DSE) T+9 DSE Clearing House Cheque (in favour of DSE) Securities This cycle is valid only for Z group instruments traded in Public. Block & Odd-lot Market with trade for trade settlement facility through DSE Clearing House on T+1. Day T: Both Brokers & DSE Sign Contract Selling Broker T+0 Securities T+1 Buying Broker Cheque (in favour of DSE) T+1 DSE Clearing House Cheque (in favour of DSE) Securities The above cycle is valid for A. N & Z category instruments traded in spot market. "Z" and "DZ" are marked in BASES columns for Non-Demat & Demat instrument respectively in our TESA Trading software. B.Z Group: Number of Instruments are 34(Trading in Public. Block & Odd-lot market. Day T: Both Brokers & DSE Sign Contract Selling Broker T+5 Securities Cheque (in favour of DSE) T+6 Cheque (in favour of DSE) Buying Broker T+6 13 Securities .

timeliness and satisfaction in customer service. DSE upgraded the Trading System again on 21st December. Laga Charge & Tax are always payable to DSE at Pay-In date for both Buyer and Seller traded in Public. Rajshahi. The existing HP Nonstop S7806 Server is highly fault tolerant to the fact that no single component failure will halt the system.. Block & Odd-lot Market. Chittagong.. Bogra at 14 . and upward compatible. . Its constituent parts are hot swappable.DSE Clearing House Remarks * If any instrument declared as Compulsory Spot then Trades of Block and Oddlot market of that Instrument will be settled like Spot Market. Royal Green Online Ltd. * Howla Charge.. The TWSs are being connected to the Trading Server via respective MSA through LAN and WAN connection. Hobiganj. Comilla. Khulna. Stock Exchanges all over the world have realized the potentiality of ICT and inclined to the electronic trading systems. DNS Ltd. the trading floor moved right into the member's office premises where an investor started to place buy/sell orders. etc Network Service Providers (NSP under WAN Expansion Project). 2008. It was understood by DSE that technology would ensure transparency. DSE Automated Trading System: Globally the developments in information & communication technologies (ICT) have created a new instance in the securities market operations. Each member has one or more Trader Work Station (TWS). The recently Upgraded Trading System was started from 21st December. Optical fiber and Radio Link from Dhaka and other important cities such as Gazipur. Considering market growth the Automated Trading System was upgraded two times. DSE outsourced MetroNet Ltd. * Howla Charge. Now day’s members can establish a main office or branch offices to their remote location and can trade smoothly by using different media ADSL. Ranks ITT. * DVP Trades are Off-Market Settlement (Broker to Broker). Narayanganj. Considering those DSE introduced Automated Trading System on 10th August 1998. 2008. Laga Charge & Tax are always payable to DSE at T+1 day for both Buyer and Seller traded in Spot Market. components can be added or removed while the system is running and any compatible new upgraded will work with the system. Previously DSE established the TANDEM Nonstop K204 System on September 1998 and on August 2005 it was replaced with highly scaleable HP Nonstop S7802.In other words. X-Net Ltd. high available. Sylhet. Barisal. Link-3. Dhaka Com Ltd. scalable and maintainable Mainframe Server. Hardware: DSE Automated Trading System (HP Nonstop S7806) is running on fault tolerant. * Outside-Of-Netted settlement for "A" Group instrument has been withdrawn from 10th Dec 2006. Network (LAN / WAN): the entire Member (238 members) Server Applications (MSA) are connected with Nonstop HP S-Series Server through either DSE LAN or WAN connectivity.

is called TESA (The Electronic Securities Architecture). Three DSE branch offices located at Chittagong. which runs in DSE for trading. software. there is a provision to allow traders to trade at DSE Contingency Trading floor. The central trading system resides in the Stock Exchange premises. Application Software The application. MSA is the "Gateway" between the traders and the Stock Exchange. which manages all the transactions and database operations between the traders and the Trading Engine. This then allows application software to be deployed using client / server architecture providing shared data processing between the central server and the user workstation. Sylhet and Khulna are connected viaBTTB's DDN link. The system software treats all its hardware resources as objects and is thus entirely message driven. which is simply a different operational session for the operating system. System Software: The system software is HP Proprietary Nonstop KERNEL and includes the database as part of the operating system thereby eliminating the layer typically found in most Database Management Systems (DBMS). We have a plan to reach the DSE branches in same way. TWS is the Front-end Application closer to investors. The Database functionalities are handled by NONSTOP SQL. network failure or telecommunication disruption at the Brokerage houses. which is running 24 hrs in a day & 365 days in a year. TESA has two parts: MSA (Member's Server Application) & TWS (Trader workstation). where they can submit Buy/Sell orders for their desired securities. Operating system is HP's proprietary Nonstop Kernel DBMS handled by Nonstop SQL. We also used connectivity for redundancy for the DDN link. 15 .the same time. DSE LAN/WAN Expansion DSE LAN/WAN Expansion Within Dhaka City: Outside of Dhaka City: In case of trade interruption due to serious hardware. The proprietary nature of the system software arguably enhances system security.

Data Integrity: Data integrity is an integral feature of HP architecture. high message integrity. only the API needs to be modified. 16 . intelligent workstations and client / server design techniques. It uses fault tolerant computers. The HP Nonstop Server is massively scalable due to Parallel processors. This provides co-operative processing. Solution Benefits: The TESA application suite derives significant advantages from being implemented on the HP Nonstop platform. validate and store orders and quotes from broker workstations and / or systems. Order Execution: Automatically executes orders when buy and sell prices match. This means that a new process does not need to be written to support each new device. Trade Reporting: Trade execution reports are provided to each trade participant. The API provides the translation between external devices and internal processes. With most systems Fault Tolerance is created at the application level. All external devices connect through the API. The HP Nonstop customers have benefited from these advantages. TESA's Application Programmatic Interface (API) is the gateway to the TESA system from the outside world. to the settlement system and / or the depository and to the market.TESA (The Electronics Securities Architecture) is the Trading software (Based on HP proprietary O/S & DBMS). Fault Tolerance is a fundamental design feature of the HP Nonstop architecture. Fault Tolerance: One of the most important automation requirements for any stock exchange system is continuous system availability. TESA employs standard HP tools to achieve exceptional data integrity. Scalability: The ability of an exchange to accommodate extraordinary increases in transaction volumes without loss of its Capital investment in automation is very important. This co-operative mechanism enables very high speed processing which is essential for today's electronic markets. continuous operation and fully automatic recovery. It has developed in view of Distributed Database system in the client site it is being using SQL as local Database Trading Software is MSA & TWS In STSD (Signal trader Single Database) system both MSA & TWS are running on a Windows 2k Professional /XP Professional workstation and for MTSD (Multiple trader Single Database) MSA install in a Windows 2k Server & the TWSs are in different Windows 2k Professional /XP Professional workstation-using members in house LAN Tesa Architecture: TESA software is built for the global securities markets. Principal Functions of TESA Market Information: Supplying all market information needed to formulate the buy and sell decisions Order Management: Accept.

last sale (i. participants enter orders and immediate execution or for inclusion in the book. Market Control: The Market Control Workstation allows the exchange administrative staff to control the operation of the market. It generates other statistical information such as Price. It supports TESA's automated and manual trading modules and can process the trades of external and off-market systems. manages. Collecting company Information: All information supplied by the listed companies are maintained in the TESA database.g. Circuit Filter. No trades will be executed in this session Continuous Trading: During this phase. Market Information is responsible for. Messaging: Allows the dissemination of company announcement data and general market administrative massages. single-price auction. All buy and all sell orders are compared and calculate the open-adjust price. Generating Market Statistics: TESA generates market indices on a real time basis. No order will be submitted in this session. Session Control: Opening and closing the market via interactive control or by preset timers. Market lot. Price protection Percentage. Market Information: Market Information is a real-time market data system.) Market Access: Provide exchange members with efficient affordable GUI-based tools for accessing the market. Collecting Real-Time Market Information: Bids. e. generates and stores information relating to trade instruments and issuing companies. Trading Sessions: TESA conducts trading in-5-phases. Enquiry: In this session Brokers can logon to the system. It collects. Automatic matching and execution takes place based on best price/ first in.Index Calculation: Calculates and publishes market indices (DSE General Index & Weighted Average Index. offers. Brokers Support 17 . Validation Parameters: Setting and viewing parameters that control the trading engine validation e. No trade will be executed. Only previous orders can be withdrew in this session Opening: The Opening is a pure.g. most recent trade price and volume).e. tick size. Circuit Breaker. first out trading rules Closing: Closing prices are calculated and disseminated to market participants Enquiry: Market will be closed in this session & other facilities like the previous enquiry session. book and other data are gathered via the Trading engine.

Research and Enquiry: this module provides brokers access to the local Broker Support and TESA databases for enquiries and research purposes. Public Order Book Broker Order Book The multi-windows environment allows users to simultaneously view orders. another 12 are selected from different trade bodies and relevant organizations. The CEO is the 25th ex-officio member of the board (Annexure-Table-B). Among them 12 are elected from DSE members. 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 DCCI (Dhaka Chamber of Commerce and Industry 18 . Management The management and operation of Dhaka Stock Exchange is entrusted on a 25 members Board of Director. market and trades. standalone and multi-user. Broker Support offers Stock Exchange members two configurations. Both configurations maintain a database consisting of information generated by the TESA Server and the local system.

accurate transactions and easily accessible to all. Mission: The Chittagong Stock Exchange believes that a dynamic. CSE was formally opened by then Hon'ble Prime Minister of Bangladesh on November 4. • Collect preserve and disseminate data and information on stock exchange. Amir Khosru Mahmud Chowdhury (MP) and run by an independent secretariat from the very first day of its inception. Objectives: • Develop a strong platform for entrepreneurs raising capital. It works towards an effective. • Provide a fully automated trading system with most modern amenities to ensure: quick. such as a clearing house. 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. • Provide an investment opportunity for small and large investors. 19 . securities depository center or similar activities. • Develop a professional service culture through mandatory corporate membership. • Attract non-resident Bangladeshis to invest in Bangladesh stock market. The Exchange comprised of twelve Board members. • Undertake any business relating to the Stock Exchange. transparent stock exchange is needed in Bangladesh. 1995 for establishing the country's second stock exchange. automated.Chittagong Stock Exchange Introduction: 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. efficient and transparent market of international standard to serve and invest in Bangladesh in order to facilitate the competent entrepreneurs to raise capital and accelerate industrial growth for overall benefit of the economy and keep pace with the global advancements. • Develop a research cell for analyzing status of the market and economy. 1995. presided by Mr. easy.

Regulatory Structure Overview Organizational Structure 20 .Management: Chittagong Stock Exchange Ltd. There is an independent secretariat headed by a Chief Executive Officer (CEO) (Annexure-Table-C). This Board comprises of one President. three Vice Presidents and 19 Directors. (CSE) has a policymaking Body of 24 members. of whom 12 are elected and 12 are non elected.

and it often leads to enormous losses for small investors who are vital for a low-income and emerging market like Bangladesh. 21 . While a handful of institutional investors may enjoy certain benefits since they have an investment unit manned with qualified officers. This is not acceptable. nothing exists for retail investors. specially in stock exchanges occur due to different arsons and its scenario is like as follows:  Access to high quality and credible corporate information remains a major problem in the market. retail investors primarily focus on advice given by their brokers. which often consists of market rumors.  in the absence of independent research houses.Problems of Capital Market: Problems in capital market.

the overall risk of investment for an investor remains very high. without creating an enabling environment. This is not adequately present in the current scenario. An estimate suggests that the ratio of institutional-to-retail investors is still low in Bangladesh. hence.Filtering of information among different types of investors may leave scope for manipulation. Institutional investors bring long-term commitment and a greater focus on fundamentals and. standard corporate governance system. Multinational corporation’s and institutions operating in Bangladesh often adhere to a very high international standard compliance regime. Unless the local market adheres to.  The authorities should not force major corporations to come into the market. proprietary investment from these institutions is not significant -. as opposed to fundamental analysis. however this particular market is still limited to the commercial banks.  The presence of institutional investors is also expected to ensure better valuation levels due to their specialized analytical skills. Investors are perhaps depending more on speculative analysis. These savings instruments are considered risk-free.  An important aspect for capital market is reflection of fair value of scraps. which 22 . and effectively enforces. resulting in volatility in the market.  The government has reduced the interest rates on savings instruments. The market has to reach such a stage of development that companies will take it as a serious alternative to bank financing.  Parent companies of most of these corporations and institutions have theirs rips listed in developed markets. While we do have public sector as well as private sector institutional investors in the economy. The focus should be on the privatization of state owned enterprises through public offerings in the bourses. stability in the market. and due to this reason the market is not receiving the attention of an important segment of investors. both foreign and local.other than the  Investment Corporation of Bangladesh that was created in 1976 and currently manages several mutual funds. even relative to other emerging markets. The market does not have an adequate number of fundamentally sound scraps. Corporate governance of international standard is still lacking. and since they are not present in the capital market.  A portfolio investor does not have the option of reducing his average portfolio risk by adding these risk-free opportunities. there will not be a levelplaying ground for international business houses vis-à-vis local operators. this assumption had been proved right in the 1996 market meltdown at the cost of many individuals and households. and individual investors do not have access to these instruments.

could attract more stable long-term investors who are sure about their investment tenure and expectations.  All these fundamental developments. followed the1996 bull-run. 1996 and now  The bull-run that took place in 1996 has left a number of positives for the market. In the secondary market. A lot of investment-friendly regulatory reforms have been implemented by the SEC. and the desired level of changes was initiated by the market watchdog subsequently. The Central Depository Bangladesh Limited (CDBL) was created in August 2000 to operate and maintain the Central Depository System (CDS) of Electronic Book Entry. mergers and so on. as well as various other investor services including providing a platform for the secondary 23 . are actually the fundamental requirements that are in place today resulting from the continuous efforts of the government and multilateral agencies. which were well overdue. surveillance is more active and particular than before. that are widely appreciated. acquisition. Trading has now become automated. recording and maintaining securities accounts and registering transfers of securities.  In the present automated trading environment. bids/offers. We now have stronger surveillance and improved rules relating to public issue. rights issue. led by the Chittagong Stock Exchange through the central depository.  These developments. changing the ownership without any physical movement or endorsement of certificates and execution of transfer instruments. and required broker particulars are all recorded and can be retrieved for future reference. depth. It was a learning experience for Bangladesh.

stable market growth. 24 . foreign investors bought shares worth$205. The banking sector.which made it Asia's top performer after China.7 million. in 2007.6 million. net foreign or portfolio investment on the Dhaka Stock Exchange surged 8. (Aims) have come up. Good return prospects.  The SEC is also adopting new valuation methods that result in fairpricing of new issues. a few firms like Asset and Investment Management Services of Bangladesh Ltd.There are strict rules and guidelines. pharmaceutical and cement sectors.  The disclosure requirements and its timing for both listed scraps and IPOs as devised by the SEC are now more reflective of international practices.3x to $129 million.market trading of Treasury Bills and Government Bonds issued by the Bangladesh Bank. While there is still a lack of credible research organizations. while the amount of selling was $78. The steady investment atmosphere prevailing throughout 2007 is considered to be one of the main reasons behind this surge. followed by the power. trading circuit breakers and international standard surveillance to protect investor rights and ensure fair play. and they are investing in research and building up stock market related credentials The recent surge in the stock market  The Dhaka Stock Exchange Index was at a 10-year high in the 2007 year end(up 66 percent). According to the DSE. and uninterrupted trading as a result of political stability attracted foreign investors to local securities. In 2007. according to a DSE statistic.  The stock market surveillance mechanics in place at present has no resemblance to that of 1996. received the most foreign investment.

infrastructure and public sectors.It is estimated that over three million people . played the role of an upward correction of the market. or 9.  The benchmark index had climbed by 80% in 2010 but has lost more than 27% since early December.25%. -.have lost money because of the plunging share prices. and the uphill trend. More suchlarge issues are required. which can emerge out of the energy. The caretaker government has also attracted investors by pledging to sell state enterprises. Fig: present situation of index of share market  Trading on the Dhaka Stock Exchange index was halted after it fell by 660 points. The P/E ratio now stands at 20x as compared to 14.Jamuna Oil Company Ltd. Monday’s protest followed losses of about 6. therefore.debuted in the bourses early this month.many of them small-scale individual investors . in less than an hour on 10th January. 2011  It was the biggest one-day fall in its 55-year history. The state-owned companies -. 25 . Investors and police also clashed last month.7% in Sunday trading. and Meghna Petroleum Ltd.1x for emerging markets. It seems sustainable if the planned big IPOs of a few SOEs and the top telecom companies take place. Some analysts think that the market had been undervalued before the surge.

business individuals. Why not use the services of the banks and dispense with the services of the couriers altogether? Will the SEC not considers a quota for Senior Citizens in future IPOs say 5% of the shares for those 65 and above? 5. 26 . the Chittagong Stock Exchange. govt employee etc. 8. 7. Lack of proper Management: Our capital market is not well managed also. Wrong Representation of Financial Statements: Many companies do not focus real position of the company as some audit firms involve in corruption while preparing financial statements. Trading was also halted on the country's other main index. take loans from foreign agencies which reduce the turnover of our currency as a result our money become barren because it requires interest also. Loan from Foreign Agencies: Most of the times Govt. 4. Political Instability: It is one of the vital reason because due to the political unrest investors relates to one party can manipulate to harm other in this way they harm investors. 2. 3. For this investors are becoming nervous to invest certainly in any securities. Corruption: Corruption is the main problem of capital markets it it occurs in many ways by politicians. Along with these problems we are also facing problems which are given below: 1. Price manipulation: It has been observed that the share values of some profitable companies has been increased fictitiously some items that hampers the smooth operation of Stock market. Negligence of Concern Parties: Govt. Weakness of SEC: SEC is responsible for controlling the capital market. as well as the concern people does not think hardly for the capital market. But in recent times we watch that the market is highly manipulated and SEC remains stable. 9. 6. Sometimes it requires the directions from the economists or specialists. Thus it can not achieve the strength in last 12 years. As a result the shareholders as well as investors do not have any idea about position of that company. Defective Rules & Regulations: The rules and regulations of capital market are defective and are changing time to time.

Lately. No benchmark rate or yield curve: The government was not in the practice of issuing any long-term transferable instruments and the interest rates on the popular government saving instruments were administered. High government borrowing at high interest rates: The government has traditionally been the major borrower through the various ‘national savings schemes’ and that too at the highest interest rate bracket and in unlimited (not predetermined) amounts. Lack of transparency in public sector borrowing: Public sector borrowing has been riddled with lack of transparency that failed to eventually proffer any reliable demand-supply scenario in which an efficient debt market can function. Irregulations in Dividends: Some companies do not hold Annual General Meeting(AGM) and eventually declare dividends that confused the shareholders about the financial positions of the company Selection of Membership: Some members being the directors of listed companies of DSE. Delays in Settlement: Financing procedures and delivery of securities sometimes take an unusual long time for which the money is blocked from nothing. The proxy ‘bank rate’ or the ‘fixed deposit’ rates of commercial banks were not a reflective and reliable substitute. accompanied with rate cuts. The government instruments were crowding out corporate borrowers and bank deposits in comparable tenures. Efforts are now on to issue tradable instruments and bring fiscal discipline. Thankfully. the scenario is shifting lately as the government has discontinued some high interest paying instruments and restricted investments on others. testified by the historically low 27 . Therefore. As such. This has been attributed to the recent surge in stock prices. CSE look for their own interest using their internal information of share market. a mid or long-term yield curve could not be developed. This culture spilled over to the nascent listed corporate debenture market.10. 12. Entrenched buy & hold culture: Since the first love of fixed income investors were the non-transferable high yield government saving certificates. an entrenched ‘buy & hold’ culture developed over the years. 13. many of the debt instruments could not be designed to be publicly traded that could fuel a vibrant market. during the past two-three years the T-bills have been gradually made marked based where the demand is overwhelmingly from commercial banks to comply with the Statutory Liquidity Requirement (SLR). no benchmarking of ‘risk-free rates’ or the risk-free premium was possible. 11. 15. Even premature encashment over the counter at the issuing offices were not a common practice. 14. Because of the frequent shifts and ad hoc culture and volatility of demand.

Lack of regulations and infrastructure: Absence of a dedicated set of regulations and necessary infrastructure that could help a debt market of consequence remained an impediment. despite absence of an umbrella law. 18. corporate issues had to offer unsustainable higher rates (14%-18. Low long-term borrowing requirement: Owing to a bitter colonial past and lack of resources. The SEC has now framed a guideline for issuance of debt securities. The historical inheritance of the English Common Law. Borrowers prefer less disclosure requirement and prudential obligations in bank borrowing to a public issue. topping with a recurring annual 1% trustee fee and related listing fees. 16. Banks feeding project finance appetite: Though retail banks necessarily should not be in a position to provide adequate long-term project finance owing to a deposit and credit tenure mismatch. the public issue cost averaged about 8%. including the Companies Act 1913. which retarded the natural growth of a secondary debt market. High tax incidence & issue cost: Until a couple of years back debenture trust had to pay one-off 2. 21. Contract Act 1862. However. there could have been notable market activities had there been strong policy support. Trust Act 1882 etc. Lack of expertise & innovation: General lack of expertise and innovation and absence of institutions in bringing variations in debt products have kept the market uninteresting. along with the various securities regulations including the SEC Public Issue Rules. Lawyers. 20.5% registration fees (now a fixed token amount of Tk2. thwarting the expected development of a debt market. 19. In a prevailing high interest regime. financial advisors and other service providers have not been competent in identifying the rights and obligations of the parties involved in debt 28 .5% fees. High bank deposit rates: As deposit interest rates of the commercial banks were also quite high until recently in competition with government securities. With firm commitment underwriting requirement necessitating 2. all provided a framework which could have a facilitating role had their been application of imagination.500) and 2% stamp duty on the total amount raised. a high establishment and issue cost base rendered most public issue of corporate debentures unviable. High bank interest rates deterred public borrowing by the corporate bodies.trading volume at the exchanges.5% pa with semi-annual rest). distorting the long-term credit market. 17. This has kept the demand for long-term capital and credit requirement at the formal market at a lower level. traditionally the commercial banks were (and still) providing such funds largely through annual rollovers. historically there was a weaker base for industrialization and related formalized commercial activities.

pension & provident funds. The market is essentially retail based and prone to high risk. the government pension funds are essentially non-funded and non-accounted-for liabilities. there remain potentials of confusion among the issuers and market intermediaries. With the erosion of public confidence there has been no issue of new listed debentures since 1999. there persists a general lack of confidence among investors in listed debentures. 23. Imbalanced Demand and Supply of Stock: There are certain leakage of stock in the market that’s why the existing stock is over valued. Because of these irregularities. 24. zero coupon issue or SVP for asset securitization. Default culture erode confidence: An overwhelming number of publicly traded debentures issued by reputed corporate houses through IPOs failed to service the interest coupon and principal payment obligations in time. provident and insurance funds restrained under age old qualitative and quantitative restrictions and growth of private mutual fund retarded under stringent regulatory frame-work and an uneven playing field. The newly licensed merchant banks are yet to make any tangible mark. Expertise and institutional base for issuing various forms of debt is yet to visibly evolve. 25. 22. life insurers etc. even if the issuer is not a bank or financial institution and it is a long-term instrument (over 1 year). Overlapping parasitical: Since Bangladesh Bank and the SEC enjoy some overlapping regulatory powers on the money and bond markets. None of these ground realities has been conducive to growth of a healthy and vibrant capital market. The governance of the debt securities regime was weak and a disincentive along with the absence of arbitration institutions.securities. There is also absence of pertinent financial research institutions. has unfortunately not developed due to multifarious impediments. There are instances where the SEC had to intervene after a long and tangled process but there was no visible legal redress for the debenture-holders. Absence of institutional investors: In Bangladesh the institutional investor community like investment & merchant banks. The Bangladesh Bank have now issued Primary Dealer licenses to selected banks and NBFIs and the SEC have also initiated the process of appointing eligible stock brokers for trading of government securities at the bourses. mutual funds. require noobjection from the Central Bank. To qualify for tax incentives. 29 .

can policy do to avoid them. That price then becomes the face value of the share. Lack of skilled investors: Lack of skilled investors is another problem to our capital market 31. The Share Market Bubble: Jyoti Rahman a famous columnist warns that there might be trouble afoot in our capital markets After bringing uncomfortable memories of 1996 to many minds over the last few months. We are by no means out of the woods yet. DSE had fallen by about 1 per cent since the end of February. Of course. if any. A small number of select investors bid for a portion of a company's shares and buy. Why then the watchdog let it happen? This must be investigated and SEC must answer to this. But with luck. a modest price correction is a preferable outcome than continuing froth in the market eventually ending in a more severe bust. we will have avoided a collapse. This means they are all overpriced in SEC's eyes. Lack of awareness: Lack of awareness is another problem in our capital market 32. 28. Lack of skilled manpower:DSE as well as financial and non financial institutions involved in the securities market. At the time of writing. Either way. 29. at least for now. the bull run in Dhaka Stock Exchange (DSE) seems to be in abeyance. Book building: is a way of asserting the price of a share. 27. and what. While there have been reports of angry reactions of retail investors expecting sharp price rises.26. Not considering the current market prices: The intrinsic values for securities traded are sometimes estimated without considering the current market prices of the securities. The lack of proper policy framework: The lack of proper policy framework that provides incentives and protection to investors 30. focus should now turn to factors that fuel these episodes. Lack of centralization: The concept of centralization of the securities market has not been implemented that arise technical problems and political infighting. The companies which have come to the market or are waiting to be listed have indicative prices (the price that they got from book building process) which reflect price earning ratios well above 40. 34. 30 . 33. Lack of skilled manpower: Lack of skilled manpower as well as financial and non-financial institutions involved in the securities market. such a bust is still very much possible.

2. Reduced Bank investment ceiling into capital market: The bank investment ceiling also needs to be reduced. insurance companies and other financial institutions should be encouraged deal in share business directly. And from time to time they have to update it. Bangladesh’s capital market is still underdeveloped and weaknesses in corporate governance 31 .  To introduce full computerized system for settlement of transactions  To force the listed companies to declare and pay regular dividends through conducting Annual General Meeting. Improve the Activities of DSE:  To force the listed companies to publish their annual reports with actual and proper information that can ensure the interests of investors  To introduce automated monitoring system that may control price manipulation. 7. So policies related to stock markets need to coordinate with the condition of all parties. have to take initiatives to maintain the flow of money supply in market where people invest their capital. Because of their investment the liquidity problem is increasing.  To take remedial action against the issues of fake certificatesBanks.  To punish the member brokers for breaching of contract. Hiked bank deposit requirements: All concern parties have to make policy to hike bank deposit requirement. 4. malpractices and inside trading. 3.Prospects of Capital Market 1. Severely squeezed money supply: Govt. Introducing Corporate Governance: A 2008 Asian Development Bank (ADB) “Improvement of Capital Market and Insurance Governance Project” program administration memorandum notes that despite recent improvements. 5. Capital Market Development Program in Bangladesh:  Strengthening market regulation and supervision  Developing the capital market infrastructure  Modernizing capital market support facilities  Increasing the limited supply of securities in the market  Developing institutional sources of demand for securities in the market and 6. Improving policy coordination: Time to time changing policies are pushing the investors towards danger.

the ADB has been involved in a project (which is scheduled to be completed in 2009) to strengthen the capacity of the Securities and Exchange Commission (SEC). most of the companies have executive directors. Ensuring the Basis for an Effective Corporate Governance Framework: According to a 2007 OECD overview of corporate governance frameworks in Asian countries.8 billion. Furthermore. The Bank also points to "inadequate market supervision" as one of the key problems. the SEC’s objective is to protect the investors. lack of shareholder involvement and reluctance on the part of the investor to raise capital through the stock market. 32 . however. 9. the capital market in Bangladesh is regulated by the SEC.As pointed out earlier. The BEI Corporate Governance guidelines and the 1987 SEC order supplement the existing framework. Among other initiatives. There are two stock exchanges in Bangladesh. are being made at various levels. Accountability. there were 277 listed securities on the DSE and 198 on the CSE. promote and develop capital markets.7 billion at the end of 2003). & Integrity” to be completed in 2012 and has also been conducting several training programs on corporate governance. when Bangladesh was part of BritishIndia) defines the structure of the firms. the CSE. Since 1999. the DSE. the SEC issued an order on corporate governance to be implemented on a comply-or-explain basis by listed companies in 2006. At the end of 2004.7% of GDP (compared with $1. The Rights of Shareholders and Key Ownership Function: Rights of shareholders are included in the Companies Act 1994.07 million project to strengthen the regulatory capacity of SEC. appointment and remuneration of the auditors etc. appointment of the CEO. including the composition of the board of directors. the BEI. The Siddiqui paper notes that the Companies Act 1994 (revised after 81 years from Companies Act 1913. CEO and chairman from the controlling family. Efforts to improve corporate governance. the Bangladeshi capital market regulator. Other regulatory agencies include the RSJC. Established in 1993. In 1999. the Bangladesh Bank. A 2009 paper by Javed Siddiqui published in the Journal of Business Ethics further explains that the corporate sector in Bangladesh is characterized by high ownership concentration. 8. the ADB initiated a US $ 1. the DSE and the CSE.Corporate boards are owner-dominated and therefore. and approving the annual balance sheet. and the Insurance Act. Additionally. obtaining financial information. Bangladeshi legal framework is governed by the Companies Act. the Bangladesh Enterprise Institute (BEI). the financial sector is regulated by the Banking Companies Act. and regulate the securities market. In 2003. Transparency.6 billion. and the ICAB. a donor-funded private sector think-tank developed a code of corporate governance. The author notes that poor implementation is one of the main problems with the Bangladeshi legal environment. By June 2005.persist. The Act grants shareholders certain rights such as attending meetings. including insufficient staff and expertise. appointing and removing directors. The total market capitalization of the CSE was $3. in partnership with the United States Agency for International Development is currently involved in a project on “Promoting Governance. The BEI report points out many weaknesses in the SEC and RSJC as regulators. the total market capitalization of the DSE was $3. representing 6.

at the expense of the majority shareholders in listed companies. 12. However. In addition.Shareholders are also given mechanisms to enforce their rights. disclosure is often inaccurate and incomplete. The report judges company disclosure based on the requirements of the Bangladesh Accounting Standards (BASs) as "inadequate" and "not consistent" . The law requires that books recording the company finances be kept at the registered office and be available for inspection by government officials. However. there is insufficient information publicly available addressing Bangladesh’s compliance with this principle 11. the directors and management of a company are subject to such penalties as fines and imprisonment for not filing periodic returns with the RJSC. However. The Code of Corporate Governance expands upon the existing legislation and suggests that minority shareholders be able to elect a director. with practically no consequences. sometimes overzealously. Sanctions for noncompliance include fines and imprisonment. especially Section 233. board size and makeup. and proving a director is at fault is difficult. there is insufficient information publicly available addressing Bangladesh’s compliance with this principle. the Companies Act of 1994 provides adequate protection for minority shareholders. as a protection for shareholders. The Role of Stakeholders in Corporate Governance: The 2003 BEI report notes that creditors are the primary stakeholders in Bangladesh because commercial financing is principally obtained through borrowing from banks and financial institutions. shareholders decide on dividends but they may not exceed the amount recommended by the board. The Equitable Treatment of Shareholders: According to the 2003 BEI report. shareholders are not involved in the daily management of the company. company disclosure to shareholders and the public is the only mechanism that shareholders and investors have to evaluate a company's performance and oversee the activities of the board. The report also identified the common concern of the stakeholder groups regarding the truth and fairness of audited financial statements. The 2003 BEI report points out the importance of strict enforcement of regulations pertaining to disclosure. exercising minority shareholder rights may be costly. The assessment recommends that stakeholders' awareness of corporate governance issues be fostered in order to strengthen their role. Disclosure and Transparency: In Bangladesh. as opposed to equity or the capital market. There are a number of provisions for the protection of minority shareholders. Other relevant 33 . 10. However. The assessment recommends increased minority shareholder participation. and the majority shareholders rarely play a role in the financial and managerial oversight of an SOE. most shareholders do not know about Section 233 and other minority shareholders rights. Corporate governance in SOEs is poor because there is little oversight by the government. It adds that weak auditing and regulation perpetuate the situation. Also. and a lack of independent directors. However. There are a number of factors that weaken shareholders rights including insufficient board disclosure. The SEC protects minority shareholders. Minority shareholders with at least 10 percent of shares may take court action against the company. Per the 2003 BEI report.

Bangladesh’s capital market is still underdeveloped.4 At the end of 2004. and a similar test is applied for bank directors. despite recent improvements. The Code of Corporate Governance includes mandates pertaining to the board and directors. CEO's are subject to the fit and proper test. 14. and they consequently do not fulfill their duties. as well as restrictions placed on multiple members of one family serving on the same board. 34 . determining risk management and internal control systems and monitoring and approving financial reports. According to the International Monetary Fund's 2005 Selected Issues paper on Bangladesh. This lack of confidence is traceable in large part to weak governance practices. There are also requirements for board meetings. a South Asian Federation of Accountants report indicates that there are requirements for the chairman to be an independent director and a separation of the roles of chairman and CEO.6 billion. Also. Companies have low expectations for their boards. Also. In addition. There are two stock exchanges in Bangladesh. Lack of market interest has in turn marginalized the role of the capital market in mobilizing long-term funds for economic development. Qualified and independent directors are rare. The Improvement of Capital Market and Insurance Governance Project (the Project) will improve good governance practices in the capital market and the insurance sector. Also. the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE). (i)Strengthening regulatory and supervisory capacity. The SEC prescribes that the audit committees should meet at least three times per year. (ii) Improving governance and operations of market Intermediaries.information frequently goes unreported. the BEI website indicates that in February 2006 the SEC introduced guidelines for corporate governance which are enforced on a 'comply or explain' basis.8 billion. the 2009 Siddiqui paper notes that Bangladeshi companies are reluctant to hold annual general meetings (AGMs) even though this is a statutory requirement. However. representing 6. There is a requirement that independent directors represent the interests of minority shareholders. there are poor requirements for the disclosure of information about the board to the shareholders. The total market capitalization of the CSE was $3. There is also no forum in which directors may carry out their functions.7 billion at the end of 2003). as board meetings and AGMs do not serve as such. The Responsibilities of the Board: The 2003 BEI report noted that most directors do not know their duties or responsibility to shareholders interests. there have been improvements in corporate governance of banks. There are guidelines for director remuneration. the number of directors and the time they serve on the board has been limited. the total market capitalization of the DSE was $3.7% of GDP (compared with $1. The board is responsible for company oversight. 13. Good governance for better capital market: Investor confidence has not fully recovered since the stock market crash in 1996. The TA loan has two parts. There are no training prerequisites for directors.

The committee will be composed of representatives from the legal and accounting professions. and (ii) capacity building will be provided to improve monitoring.1% in 2003. In addition. (i) a real-time market surveillance system will be installed.(iii) Strengthening corporate governance and public disclosures. The stock exchanges will establish a regulatory review committee to support the implementation of surveillance systems and to prevent vested interests of the exchanges’ members from encroaching on the exchanges’ regulatory functions. During 2001-2003. However. There are 62 insurance companies in Bangladesh. The insurance sector. regulatory practices. As economic growth accelerates. JBC and SBC account for around 15% of premium income in their respective subsectors. and DSE will be trained in modern market surveillance and enforcement techniques to enable them to be more effective at detecting trading irregularities and market abuses. an important provider of long-term capital. staff will be trained not to contaminate evidence 35 . reviewing existing regulations. 15. (iv) Strengthening accreditation System. The SEC surveillance system will complement the stock exchanges’ own market surveillance activities and ensure that the exchanges are performing their regulatory functions well. there is greater need for insurance protection and new insurance products. The training will include examination of evidence and analysis of trading accounts of brokerage firms. and Staff of SEC. They include two state-owned insurance corporations: Jiban Bima Corporation (JBC) for life insurance and Sadharan Bima Corporation (SBC) for general insurance. the insurance premium per capita remained at 2. and enforcement capacity of the SEC. slightly lower than in Pakistan (2. is growing very rapidly in Bangladesh. and an SEC representative who will participate as an observer. supervision. The committee will be responsible for establishing policy and direction in applying the regulations of the exchanges.9%) and far below India (16. who will be independent of members of the exchanges. CSE. and (v) strengthening debt recovery. premiums have grown by 22% annually for life insurance and by 11% for general insurance.4%). SBC benefits substantially from reinsurance premium income since it is compulsory for general insurance companies to reinsure with SBC up to 50% of their total reinsured assets. Strengthening the Market Surveillance Systems: To strengthen the SEC’s operations and governance.

while specific courses will be designed and undertaken for SEC management and its Board covering regulatory issues. . market operations. The training for the SEC enforcement staff will concentrate on hands-on training and include exposure to actual cases. enforcement. staff development and retention schemes. and a succession plan for employees leaving the SEC (ii) the establishment of an in-house training unit within the SEC (iii) overseas secondments for a small number of key staff. General courses will be given to all staff of SEC. 36 . and market surveillance. and organizational management. among others. and (iv) a brief review of the overall risk management situation in the market. promote market stability and develop the capital market.  Capacity Building. effective risk management. The Project will support (i) capacity building programs. which play an important part in the overall regulation of the capital market. The training needs to be met by the Project include.obtained from the surveillance system that could later be used in prosecuting a matter in the courts.  Further Strengthening the Capacity of SEC: The Project will continue assistance provided to the SEC to progressively upgrade its capacity so it can meet more fully its current and future regulatory and market development functions. The capacity building programs will help develop the skills required by the SEC to meet gaps in its present operations and for future regulatory needs.

Some of the local training may be combined with SEC staff training. An organizational and succession plan will be developed and implemented.  Establishment of In-House Training Unit: . The Project will support a concise overall risk management review so that the SEC can identify potential weaknesses in the market structure. advocates the importance of the integrity of capital markets as essential to a country’s financial stability and economic prosperity. including a policy for retaining trainees.The policy and procedures on selection of staff for local and international training. help to establish a training unit within the SEC. Trainers with expertise in the highly specialized regulatory functions of the SEC are rare in Bangladesh. It provides guidelines to enable regulators to identify and address possible weaknesses to a financial system. This will strengthen the SEC’s preparedness for its supervisory functions . The Project will provide training. The unit will have a high profile in the SEC and be responsible for both initial and subsequent training of its staff. so consideration will be given to using qualified retired officers from the SEC with the expertise and training skills to conduct in-house training programmes. There will be a facilitation plan of selected current senior staff to obtain professional qualifications appropriate to their posts. will be transparent. coaching. Policies and procedures will be introduced to recruit employees. to ensure that training is sustained. 37 .  Enhancing the Capacity of Management and Governance of the Stock Exchanges 15 IOSCO. The component will cover a needs assessment of designated staff at each exchange and the provision of courses based on those outlined in component 1 for the SEC. and organizational development advice to management.  Risk Management. Management must be provided with the knowledge to operate the exchanges effectively and efficiently by international standards. as the principal international securities regulatory standards-setting organization. The Project will help to arrange (but not fund) secondment of selected exchange staff to overseas exchanges.

To improve management efficiency and help to raise the operations and governance of the exchanges to international standards. Anwarul Kabir Bhuiyan ED Mr. Ruksana Chowdhury ED (CMRRC) 1. and preparing draft papers to present to the SEC for approval./Law) Mrs. 4. Farhad Ahmed ED (AdminFinance/Enf. the boards and committees of exchanges will be streamlined. Md. borrowing and lending of securities. Chairman 38 . Mr. The Project will help to review current governance regulations. Helal Uddin Nizami Member-II Officers of the Commission Mr.o. through the use of various accepted trading mechanisms such as margin lending. Muhammad Yasin Ali Member-I Professor Md. Ziaul Haque Khondker 02. 2. Annexure Sl. Abdul Hannan Zoarder ED (Presently under lien for 2 years) Mr. Mr. Table: A SECURITIES AND EXCHANGE COMMISSION Authority Name Designation Commission 01. and the introduction of new products suitable for Bangladesh. The Project will consider ways to facilitate transactions in the exchanges. 3. 03. such as the memorandum and articles of associations of the exchanges.

Tariquzzaman Mr. 12. Mahbuber Rahman Chow. Hafiz Md. 28 29 30 31. 25.) Director (Corporate Finance) Director (MIS/Surv) Director (Corporate Finance-II/Finance) Director (CI) Director (Enforcement) Director (Reg.) Assistant Director(Surveillance) Table-B Dhaka Stock Exchange Ltd. Mr. 20.5. Ripan Kumar Debnath Mr. Iqbal Hossain Mr.) DD (Chairman’s Office/IRD) DD (SRMIC) DD (Corporate Finance) DD(Law) DD(Law) DD(Enforcement) Accounts Officer AD (MF&SPV) AD (CI) AD (Surveillance) Assistant Director (Reg. 16. A. Abul Kalam Mr. Anowarul Islam Mr. 10. Ohidul Islam Mr. Reg. 33. Mahmudul Hasan Mr. Md. Md. Yusuf Bhuiyan Syed Golam Mowla Ms Tania Sharmin Ms Sultana Parvin Mr. 26. 21. 11. Hossain Khan Ms. Hasan Mahmud Mr.S. Mahmoodul Hoque Mr. 15.) Director (SRMIC) Director (CMRRC) Director (Enforcement) Director (SRI) Director (Surv. M. Prodip Kumar Basak Mr. Shafiul Azam Mr. Md. 35 36 37 38 39 40 41 42 43 44 45 Mr. 14. Farhana Faruqui Mr. 27. 13. Mohammad Zahirul Haque Mr.) Assistant Director (R&D) Assistant Director (Surveillance) Assistant Director(MF&SPV) Assistant Director (Admin &Finance) Assistant Director(SRMIC) Assistant Director(Enf. 17. 7. 8. 9. 19. Rakibur Rahman Md.A Maleque Ms.) Assistant Director (SRI) Assistant Director (CI) Assistant Director (Reg. Parvin Akter ED (CI/CDS) ED (MF & SPV. SRMIC) Director (Law) Director (CI) Director (CMRRC. Md.T. Rajib Ahmed Mr. Mansur Rahman Mr. Mahbubul Alam Mr. A. Md. Assistant Director Mr. Kamrul Anam Khan Mr. Saifur Rahman Mr. 34. Abu Rayhan Mohammad Mutasim Billah Mr. Mir Mosharraf Hossain Mr. 24. 6. Mohammad Jahangir Alam Mr.) ED (Surv) Executive Director (MIS) Executive Director (CF) Director (SRI. Muhammad Ziaur Rahman Ms. 23. Authority 39 . Mohammad Rezaul Karim Mr. Ashraful Islam Mr. 32. Saiful Islam Mr. Harunur Rasid Ms Mahmuda Shireen. 18.M. Mohammad Abul Hasan Mr. M. Mustari Jahan Mr. Fakhrul Islam Mazumder Mr. 22.R&D. Anu Dey Mr.M.Sheikh Mahbub Ur Rahman Mrs.

Chowdhury. DSE Mr. Fakhor Uddin Ali Ahmed President 2. Feroz Khan Director. Md. DSE Mr. Authority 1. DSE Mr. Rafiqul Islam Director. Shahidullah Director 5.Q.I. Rakibur Rahman Director.FCA Vice-President 3. ASM Nayeem. Sharif Ataur Rahman Director. Ahasanul Islam Senior Vice-President. DSE Mr. DSE Mr. Md.Mr. Mizanur Rahman Khan Director. Ahmad Rashid Director.. DSE Mr. Shahjahan Vice-President. Md. DSE Mr. FCCA Director 40 . Al Maruf Khan. DSE Table: C Chittagong Stock Exchange Ltd. Azizur Rahman Director. Tareq Kamal Vice-President 4. DSE Mr. DSE Mr. DSE Mr. Ahmed Iqbal Hasan Director. Khwaja Ghulam Rasul Director. DSE Mr. A.OBE Vice-President 4. Shakil Rizvi President. Md.FCA. Md. Md. Abu Sayed Md.

ussuf Abdullah Harun. FCA Director 16. Md. Mubin Director 15. Mohiuddin Director 9 . A. Amir Humayun Mahmud Chowdhury Director Mr. LLB. Mohammed Abdullah Mamun CEO & Director Table: D Listed Companies in DSE Bank 41 . Mofizuddin Director 10. Zaidi Satter Director 24. Farooq Sobhan Director 18. Sarwar-E-Alam Director 21.6. Mamun Rashid Director 20. Khan Director 17. Bijan Chakroborty Director 7. Nasiruddin Ahamed Chowdhury Director 12. Abul K. Moinul Islam Mahmud Director 22. Mohammed Mohiuddin. Mirza Salman Ispahani Director 8. essor Dr. Md. Aftabul Islam. Anis A. .M. FCA Director 23.K. FCMA Director 11. M. Kutubuddin Ahamed Director 19. Abu Ahmed Director 13.

) NBL (NATIONAL BANK LIMITED.) STANDBANKL (STANDARD BANK LIMITED) ONEBANKLTD (ONE BANK LIMITED) BANKASIA (BANK ASIA LIMITED) MERCANBANK (MERCANTILE BANK LIMITED) EXIMBANK (EXPORT IMPORT BANK OF BD.) MTBL (MUTUAL TRUST BANK LTD.) DHAKABANK (DHAKA BANK LIMITED.) PUBALIBANK (PUBALI BANK LIMITD.) ARAMITCEM (ARAMIT CEMENT LTD.) ALARABANK (ALARAFAH ISLAMI BANK LTD.) PADMACEM (PADMA CEMENT LTD.) SOUTHEASTB (SOUTHEAST BANK LIMITED.) UCBL (UNITED COMMERCIAL BANK LIMITED.) ABBANK (AB BANK LIMITED.) TRUSTBANK (TRUST BANK LIMITED) FIRSTSBANK (FIRST SECURITY BANK LIMITED) Cement HEIDELBCEM (HEIDELBERGCEMENT BANGLADESH LIMITED.) BRACBANK (BRAC BANK LTD.) RUPALIBANK (RUPALI BANK LIMITED.) PREMIERBAN (THE PREMIER BANK LTD.) SHAHJABANK (SHAHJALAL ISLAMI BANK LTD.) NILOYCEM (NILOY CEMENT INDUSTRIES LIMITED) Ceramics Sector 42 .) PRIMEBANK (PRIME BANK LTD.) ICBIBANK (ICB ISLAMIC BANK LIMITED) JAMUNABANK (Jamuna Bank Ltd. LTD.) NCCBANK (NATIONAL CREDIT AND COMMERCE BANK LIMITED) SIBL (SOCIAL ISLAMI BANK LIMITED) DUTCHBANGL (DUTCH BANGLA BANK LTD.) EBL (EASTERN BANK LIMITED.) IFIC (INTERNATIONAL FINANCE INVESTMENT AND COMMERCE BANK LIMITED) ISLAMIBANK (ISLAMI BANK BANGLADESH LIMITED.) CONFIDCEM (CONFIDENCE CEMENT LIMITED) MEGHNACEM (MEGHNA CEMENT MILLS LIMITED) LAFSURCEML (LAFARGE SURMA CEMENT LTD.) UTTARABANK (UTTARA BANK LIMITED.CITYBANK (THE CITY BANK LIMITED.

) SPCERAMICS (SHINEPUKUR CERAMICS LIMITED) RAKCERAMIC (RAK CERAMICS (BANGLADESH) LIMITED ) Corporate Bond IBBLPBOND (IBBL MUDARABA PERPETUAL BOND) ACIZCBOND (ACI 20% CONVERTIBLE ZERO COUPON) BRACSCBOND (SUB 25% CONVERTIBLE BONDS OF BRAC BANK LIMITED) Debenture DEBBXKNI (BEXIMCO KNITTING LIMITED) DEBBXDENIM (BEXIMCO DENIMS LIMITED) Engineering AFTABAUTO (AFTAB AUTOMOBILES LIMITED.) NPOLYMAR (NATIONAL POLYMER INDUSTRIES LIMITED) NAVANACNG (NAVANA CNG LIMITED) AZIZPIPES (AZIZ PIPES LIMITED.) BSRMSTEEL (BSRM STEELS LIMITED) DESHBANDHU (DESHBANDHU POLYMER LIMITED) Financial Institutions 43 .) ECABLES (EASTERN CABLES LIMITED) SINGERBD (SINGER BANGLADESH LIMITED.) MONNOJTX (MONNO JUTEX INDUSTRIES LTD.) ATLASBANG (ATLAS BANGLADESH LIMITED. Alam Cold Rolled Steels Ltd.) GOLDENSON (GOLDEN SON LTD.) BDTHAI (BANGLADESH THAI ALUMINIUM LIMITED.) RENWICKJA (RENWICK JAJNESWAR & COMPANY(BANGLADESH) LTD.) BDAUTOCA (BANGLADESH AUTOCARS LIMITED) QSMDRYCELL (QUASEM DRYCELLS LIMITED.) ANWARGALV (ANWAR GALVANIZING LIMITED) MONNOSTAF (MONNO JUTE STAFLLERS LTD.STANCERAM (STANDARD CERAMIC INDUSTRIES LTD.) SALAMCRST (S.) RANFOUNDRY (RANGPUR FOUNDRY LTD.) BDLAMPS (BANGLADESH LAMPS LIMITED.) NTLTUBES (NATIONAL TUBES LIMITED.) OLYMPIC (OLYMPIC INDUSTRIES LIMITED.) KAY&QUE (KAY & QUE(BANGLADESH) LIMITED.) FUWANGCER (FUWANG CERAMIC INDUSTRY LIMITED) MONNOCERA (MONNO CERAMIC INDUSTRIES LTD.

& Dev. CO.) PLFSL (PEOPLES LEASING & FINANCIAL SERVICES LTD.) PRIMEFIN (PRIME FINANCE & INVESTMENT LTD. Ltd.) KPCL (KHULNA POWER COMPANY LIMITED) Food & Allied APEXFOODS (APEX FOODS LIMITED) BANGAS (BANGAS LIMITED) BATBC (BRITISH AMERICAN TOBACCO BANGLADESH COMPANY LIMITED) NTC (NATIONAL TEA COMPANY LIMITED) ZEALBANGLA (ZEAL BANGLA SUGAR MILLS LIMITED) SHYAMPSUG (SHYAMPUR SUGAR MILLS LIMITED) 44 .) POWERGRID (Power Grid Company of Bangladesh Ltd. Co.) BDFINANCE (BANGLADESH FINANCE AND INVESTMENT CO.) UNIONCAP (UNION CAPITAL LIMITED) PHOENIXFIN (PHOENIX FINANCE AND INVESTMENTS LTD) FASFIN (FAS Finance & Investment Limited) DBH (DELTA BRAC HOUSING FINANCE CORP.L) ICB (INVESTMENT CORPORATION OF BANGLADESH. AND INV. LTD. Co.IDLC (INDUSTRIAL DEVELOPMENT LEASING COMPANY BANGLADESH LIMITED.) UTTARAFIN (UTTARA FINANCE AND INVESTMENT COMPANY LIMITED) MIDASFIN (MIDAS FINANCING LIMITED) FLEASEINT (FIRST LEASE INTERNATIONAL LTD. WELDING ELECTRODES) JAMUNAOIL (JAMUNA OIL COMPANY LIMITED) MPETROLEUM (MEGHNA PETROLEUM LIMITED) TITASGAS (TITAS GAS TRANSMISSION & DIST. LTD.) ISLAMICFIN (ISLAMIC FINANCE & INVESTMENT LTD.) BDWELDING (BD.) EASTRNLUB (EASTERN LUBRICANTS BLENDERS LIMITED) PADMAOIL (PADMA OIL COMPANY LIMITED) DESCO (Dhaka Electric Supply Company Ltd.) NHFIL (NATIONAL HOUSING FIN. LTD.) LANKABAFIN (LankaBangla Finance Ltd.) IPDC (Industrial Prom.) PREMIERLEA (PREMIER LEASING FINANCE LTD.) BIFC (Bangladesh Industrial Fin.) ILFSL (INTERNATIONAL LEASING & FINANCIAL SERV.LTD.) ULC (UNITED LEASING COMPANY LIMITED.) BAYLEASING (BAY LEASING & INVESTMENT LIMITED) Fuel & Power BOC (BOC BANGLADESH LIMITED) SUMITPOWER (SUMMIT POWER LTD. of BD Ltd.

LTD.) FAREASTLIF (FAREAST ISLAMI LIFE INSURANCE CO.) GLOBALINS (GLOBAL INSURANCE LTD.) MERCINS (MERCANTILE INSURANCE CO.) POPULARLIF (POPULAR LIFE INSURANCE CO.) BEACHHATCH (BEACH HATCHERY LTD. LTD) 45 . LTD.GULFOODS (GULF FOODS LIMITED. LTD.) FINEFOODS (FINE FOODS LIMITED) BLTC (BLTC) HILLPLANT (HILL PLANTATION LIMITED) MEGHNAPET (MEGHNA PET INDUSTRIES LTD.) MEGHNALIFE (MEGHNA LIFE INSURANCE CO. LTD.) AGRANINS (AGRANI INSURANCE CO. LTD) UNITEDINS (UNITED INSURANCE COMPANY LIMITED) CENTRALINS (CENTRAL INSURANCE COMPANY LIMITED) SANDHANINS (SANDHANI LIFE INSURANCE COMPANY LIMITED) PROGRESLIF (PROGRESSIVE LIFE INSURANCE CO.) FUWANGFOOD (FUWANG FOODS LIMITED) MEGCONMILK (MEGHNA CONDENSED MILK INDUSTRIES LTD.) DHAKAFISH (DHAKA FISHERIES LIMITED) ALPHATOBA (ALPHA TOBACCO MANUFACTURING COMPANY LIMITED) CTGVEG (CHITTAGONG VEGETABLE OIL INDUSTRIES LIMITED) RAHIMAFOOD (RAHIMA FOOD CORPORATION LIMITED) BDPLANT (BANGLADESH PLANTATION LIMITED) MODERNIND (MODERN INDUSTRIES(BANGLADESH) LIMITED) GEMINISEA (GEMINI SEA FOOD LIMITED) AMCL(PRAN) (AMCL (PRAN)) YOUSUFLOUR (YOUSUF FLOUR) MEGHNASHRM (MEGHNA SHRIMP CULTURE LIMITED) Insurance GREENDELT (GREEN DELTA INSURANCE COMPANY LIMITED) EASTERNINS (EASTERN INSURANCE COMPANY LIMITED) JANATAINS (JANATA INSURANCE COMPANY LIMITED) PHENIXINS (PHOENIX INSURANCE COMPANY LIMITED) EASTLAND (EASTLAND INSURANCE COMPANY LIMITED) KARNAPHULI (KARNAPHULI INSURANCE COMPANY LIMITED) RUPALIINS (RUPALI INSURANCE COMPANY LIMITED) NATLIFEINS (NATIONAL LIFE INSURANCE COMPANY LIMITED) DELTALIFE (DELTA LIFE INSURANCE COMPANY LIMITED) PRAGATIINS (PRAGATI INSURANCE LIMITED) PIONEERINS (PIONEER INSURANCE COMPANY LTD.) NITOLINS (NITOL INSURANCE CO.

) DAFODILCOM (DAFFODIL COMPUTERS LTD.) MIRACLEIND (MIRACLE INDUSTRIES LIMITED. LTD.) PRAGATILIF (PRAGATI LIFE INSURANCE LTD.) BDCOM (BDCOM ONLINE LIMITED.) ISLAMIINS (ISLAMI INSURANCE BANGLADESH LIMITED) FEDERALINS (FEDERAL INSURANCE COMPANY LIMITED) PURABIGEN (PURABI GENERAL INSURANCE COMPANY LIMITED) BGIC (BANGLADESH GENERAL INSURANCE COMPANY LIMITED) PRIMELIFE (PRIME ISLAMI LIFE INSURANCE LTD.) 46 .) Jute NORTHERN (NORTHERN JUTE MANUFACTURING COMPANY LIMITED) JUTESPINN (JUTE SPINNERS LIMITED) SONALIANSH (SONALI AANSH INDUSTRIES LIMITED) Miscellaneous GQBALLPEN (GQ BALL PEN INDUSTRIES LIMITED) USMANIAGL (USMANIA GLASS SHEET FACTORY LIMITED) SINOBANGLA (SINOBANGLA INDUSTRIES LTD.PRIMEINSUR (PRIME INSURANCE COMPANY LTD.) STANDARINS (STANDARD INSURANCE LIMITED) TAKAFULINS (TAKAFUL ISLAMI INSURANCE LIMITED) NORTHRNINS (NORTHERN GENERAL INSURANCE COMPANY LTD) REPUBLIC (REPUBLIC INSURANCE COMPANY LIMITED) ASIAINS (ASIA INSURANCE LIMITED) RUPALILIFE (RUPALI LIFE INSURANCE COMPANY LIMITED) PROVATIINS (PROVATI INSURANCE COMPANY LIMITED) DHAKAINS (DHAKA INSURANCE LIMITED) IT Sector ISNLTD (INFORMATION SERVICES NETWORK LTD.) AGNISYSL (AGNI SYSTEMS LTD.) BERGERPBL (BERGER PAINTS BANGLADESH LTD.) INTECH (INTECH ONLINE LIMITED.) RELIANCINS (RELIANCE INSURANCE LIMITED) PEOPLESINS (PEOPLES INSURANCE COMPANY LIMITED) ASIAPACINS (ASIA PACIFIC GENERAL INSURANCE) SONARBAINS (SONAR BANGLA INSURANCE LTD.) CONTININS (CONTINENTAL INSURANCE LTD.) PARAMOUNT (PARAMOUNT INSURANCE COMPANY LTD) CITYGENINS (CITY GENERAL INSURANCE CO.

) 1STBSRS (FIRST BANGLADESH SHILPA RIN SANGSTHA MUTUAL FUND.) 7THICB (SEVENTH ICB MUTUAL FUND.) 8THICB (EIGHTH ICB MUTUAL FUND) AIMS1STMF (AIMS FIRST GUARANTEED MUTUAL FUND.) 5THICB (FIFTH ICB MUTUAL FUND.) ICBAMCL2ND (ICB AMCL SECOND MUTUAL FUND) 2NDICB (SECOND ICB MUTUAL FUND.) ICBAMCL1ST (ICB AMCL FIRST MUTUAL FUND) ICBISLAMIC (ICB AMCL ISLAMIC MUTUAL FUND) GRAMEEN1 (GRAMEEN MUTUAL FUND ONE) PF1STMF (PHOENIX FINANCE 1ST MUTUAL FUND) EBL1STMF (EBL FIRST MUTUAL FUND) 1STICB (FIRST ICB MUTUAL FUND.ARAMIT (ARAMIT LIMITED) SAVAREFR (SAVAR REFRACTORIES LIMITED) BEXIMCO (BEXIMCO ) BSC (BANGLADESH SHIPPING CORPORATION) ENGINEER (THE ENGINEERS) HIMADRI (HIMADRI) Mutual Funds 6THICB (SIXTH ICB MUTUAL FUND.) ICB1STNRB (ICB AMCL 1ST NRB MUTUAL FUND) ICB2NDNRB (ICB AMCL 2ND NRB MUTUAL FUND) GRAMEENS2 (GRAMEEN ONE : SCHEME TWO) 1STPRIMFMF (PRIME FINANCE FIRST MUTUAL FUND) ICBEPMF1S1 (ICB EMPLOYEES PROVIDENT MF 1: SCHEME 1) PRIME1ICBA (PRIME BANK 1ST ICB AMCL MUTUAL FUND) DBH1STMF (DBH FIRST MUTUAL FUND) IFIC1STMF (IFIC BANK 1ST MUTUAL FUND) ICB3RDNRB (ICB AMCL THIRD NRB MUTUAL FUND) 1JANATAMF (First Janata Bank Mutual Fund) GREENDELMF (Green Delta Mutual Fund) POPULAR1MF (POPULAR LIFE FIRST MUTUAL FUND) PHPMF1 (PHP FIRST MUTUAL FUND) IFILISLMF1 (IFIL ISLAMIC MUTUAL FUND-1) AIBL1STIMF (AIBL 1st Islamic Mutual Fund) MBL1STMF (MBL 1ST MUTUAL FUND) 47 .) 3RDICB (THIRD ICB MUTUAL FUND.) TRUSTB1MF (TRUST BANK 1ST MUTUAL FUND) 4THICB (FOURTH ICB MUTUAL FUND.

) MARICO (MARICO BANGLADESH LIMITED) BXSYNTH (BEXIMCO SYNTHETICS LIMITED) ORIONINFU (ORION INFUSION LTD.Paper & Printing HAKKANIPUL (HAKKANI PULP & PAPER MILLS LTD.) KEYADETERG (KEYA DETERGENT LTD.) LEGACYFOOT (LEGACY FOOTWEAR LTD.) PHARMAID (PHARMA AIDS LIMITED) TBL (THERAPEUTICS(BANGLADESH) LIMITED) ACIFORMULA (ACI FORMULATIONS LIMITED) BEACONPHAR (BEACON PHARMACEUTICALS LIMITED) ACTIVEFINE (ACTIVE FINE CHEMICALS LIMITED) SALVOCHEM (SALVO CHEMICAL INDUSTRY LIMITED) Services & Real Estate EHL (EASTERN HOUSING LIMITED) SAMORITA (SAMORITA HOSPITAL LTD.) SAPORTL (SUMMIT ALLIANCE PORT LIMITED) OCL (OCEAN CONTAINERS LIMITED) Tannery Industries APEXTANRY (APEX TANNERY LIMITED) APEXADELFT (APEX ADELCHI FOOTWEAR LTD.) 48 .) SQURPHARMA (SQUARE PHARMACEUTICALS LIMITED) IMAMBUTTON (IMAM BUTTON INDUSTRIES LIMITED) KEYACOSMET (KEYA COSMETICS LTD.) AMBEEPHA (AMBEE PHARMACEUTICALS LIMITED) GLAXOSMITH (GLAXOSMITHKLINE BANGLADESH LTD.) RENATA (RENATA LIMITED) KOHINOOR (KOHINOOR CHEMICAL COMPANY(BANGLADESH) LTD.) LIBRAINFU (LIBRA INFUSIONS LTD.) BATASHOE (BATA SHOE COMPANY(BANGLADESH) LTD.) SAMATALETH (SAMATA LEATHER COMPLEX LTD.) Pharmaceuticals & Chemicals BANGLAPRO (BANGLA PROCESS INDUSTRIES LIMITED) BXPHARMA (BEXIMCO PHARMACEUTICALS LIMITED) ACI (ADVANCED CHEMICAL INDUSTRIES LIMITED) RECKITTBEN (RECKITT BENCKISER(BANGLADESH) LTD.) IBNSINA (THE IBN SINA PHARMACEUTICAL INDUSTRY LTD.

) Untitled WONDERTOYS (WONDERLAND TOYS LIMITED.N.) ANLIMAYARN (ANLIMA YEARN DYEING LTD.) Textile DELTASPINN (DELTA SPINNERS LTD.) MODERNDYE (MODERN DYEING & SCREEN PRINTING LTD.Telecommunication GP (GRAMEENPHONE LTD.R.) METROSPIN (METRO SPINNING LTD.) QSMSILK (QUASEM SILK MILLS LIMITED) DSHGARME (DESH GARMENTS LIMITED) APEXSPINN (APEX SPINNING & KNITTING MILLS LIMITED) MONNOFABR (MONNO FABRICS LTD.) HRTEX (H. TEXTILE MILLS LIMITED) SQUARETEXT (SQUARE TEXTILES LTD.) BEXTEX (BEXTEX LTD.) MALEKSPIN (MALEK SPINNING MILLS LTD.) CMCKAMAL (CMC KAMAL TEXTILE MILLS LTD.) SAIHAMTEX (SAIHAM TEXTILE MILLS LTD. SPINNING MILLS LIMITED) Travel & Leisure BDHOTELS (BANGLADESH HOTELS) BDSERVICE (BANGLADESH SERVICES) UNITEDAIR (UNITED AIRWAYS (BD) LTD.) APEXWEAV (APEX WEAVING & FINISHING MILLS LIMITED) ALLTEX (ALLTEX INDUSTRIES LTD.) DACCADYE (THE DACCA DYEING & MANUFACTURING CO.) STYLECRAFT (STYLECRAFT LIMITED) MAKSONSPIN (MAKSONS SPINNING MILLS LIMITED) AL-HAJTEX (AL-HAJ TEXTILE) RNSPIN (R.LTD.) SONARGAON (SONARGAON TEXTILES LIMITED) TALLUSPIN (TALLU SPINNING MILLS LIMITED) MITHUNKNIT (MITHUN KNITTING AND DYEING(CEPZ) LTD.) DULAMIACOT (DULAMIA COTTON SPINNING MILLS LIMITED) RAHIMTEXT (RAHIM TEXTILE MILLS LTD.) SAFKOSPINN (SAFKO SPINNING MILLS LTD.) 49 .) PRIMETEX (PRIME TEXTILE SPINNING MILLS LTD.

) LEXCO (LEXCO LIMITED) EXCELSHOE (EXCELSIOR SHOES LIMITED) BDLUGGAGE (BANGLADESH LUGGAGE INDUSTRIES LIMITED) ROSEHEAVEN (ROSE HEAVEN BALL PEN LIMITED) BENGALBISC (BENGAL BISCUITS LIMITED) GBJVFOOD (GERMAN BANGLA J.) RAHMANCHEM (RAHMAN CHEMICALS LIMITED) MAQPAPER (MAQ PAPER INDUSTRIES LIMITED) SHINEPUKUR (SHINEPUKUR HOLDINGS LIMITED) MODERNCEM (MODERN CEMENT LIMITED. HOSSAIN GARMENTS WASHING & DYEING LIMITED) PETROSYNTH (PETRO SYNTHETIC PRODUCTS LTD.) TULIPDAIRY (TULIP DAIRY AND FOOD PRODUCTS LIMITED) RANGAFOOD (RANGAMATI FOOD PRODUCTS LTD.) PADMAPRINT (PADMA PRINTERS & COLOUR LTD.) ALAMINCHEM (ALAMIN CHEMICAL INDUSTRIES LTD.) BDONLINE (BANGLADESH ONLINE LTD.) TAMIJTEX (TAMIJUDDIN TEXTILE MILLS LTD.) CHICTEX (CHICTEX LTD.) DANDYDYE (DANDY DYEING LIMITED) MONOSPOOL (BANGLADESH MONOSPOOL PAPER MANUFACTURING COMPANY LTD.) EAGLESTAR (EAGLE STAR TEXTILE MILLS LTD.) DYNAMICTEX (DYNAMIC TEXTILE INDUSTRIES LIMITED) PHARMACO (PHARMACO INTERNATIONAL LTD.V.) PAPERPROC (PAPER PROCESSING & PACKAGING LIMITED) 50 . FOOD LTD.) BDDYE (BANGLADESH DYEING & FINISHING INDUSTRIES LIMITED) BENGALFINE (BENGAL FINE CERAMICS LIMITED) SAJIBKNIT (SAJIB KNITWEAR & GARMENTS LIMITED) MAQENTER (MAQ ENTERPRISES LTD.) RASPIT (RASPIT INC (BD) LIMITED) QSMTEX (QUASEM TEXTILE MILLS LIMITED) MITATEX (MITA TEXTILES LIMITED) MHOSSAIN (M.) ASHRAFTEX (ASHRAF TEXTILE MILLS LTD.TRIPTI (TRIPTI INDUSTRIES LIMITED) BXFISHERY (BEXIMCO FISHERIES LIMITED) SONALIPAPR (SONALIPAPR ) MONAFOOD (MONA FOOD INDUSTRY LIMITED) GACHIHATA (GACHIHATA AQUACULTURE FARMS LIMITED) BIONICFOOD (BIONIC SEAFOOD EXPORTS LTD.) WATACHEM (WATA CHEMICALS LIMITED) PERFUMCHM (PERFUME CHEMICAL INDUSTRIES LTD.

Pioneer Insurance Company Ltd. Janata Insurance Company Ltd. Pragati Insurance Ltd Phoenix Insurance Company Ltd Eastern Insurance Company Ltd Eastland Insurance Company Ltd Prime Insurance Company Ltd. Federal Insurance Company Ltd. City General Insurance Co. Fareast Islami Life Insurance Company Ltd. Pragati Life Insurance Ltd. Sandhani Life Insurance Company Ltd Popular Life Insurance Company Ltd. Progressive Life Insurance Company Ltd.BEMCO (BANGLADESH ELECTRICITY METER COMPANY LIMITED) SREEPURTEX (SREEPUR TEXTILE MILLS LTD. Rupali Life Insurance Company Ltd. GENERAL INSURANCE Rupali Insurance Company Limited Peoples Insurance Company Limited Green Delta Insurance Company Ltd Reliance Insurance Ltd. Central Insurance Company Ltd. Company Ltd. Sonar Bangla Insurance Ltd. 51 . Prime Islami Life Insurance Ltd. Asia Pacific General Insurance Company Ltd. Continental Insurance Ltd. Ltd. National Life Insurance Company Ltd. Meghna Life Insurance Company Ltd.) SALEHCARPT (SALEH CARPET MILLS LIMITED) BCIL (BANGLADESH CHEMICAL INDUSTRIES LTD) RASPITDATA (RASPIT DATA MANAGEMENT) DSEGEN (DSE GENERAL INDEX) Table: E Listed Companies in LIFE INSURANCE CSE Delta Life Insurance Company Ltd. Nitol Insurance Company Ltd.) BDZIPPER (BANGLADESH ZIPPER INDUSTRIES LIMITED) GMGIND (GMG INDUSTRIAL CORPORATION LIMITED) AMAMSEAFD (AMAM SEA FOOD INDUSTRIES LIMITED. Ltd. Paramount Inurance Co. Bangladesh General Ins.

N.R. TEXTILES & CLOTHING Prime Textile Spinning Mills Ltd Apex Spinning & Knitting Mills Ltd. Beacon Pharmaceuticals Ltd. Dhaka Insurance Ltd. Marico Bangladesh Ltd. Berger Paints Bangladesh Ltd. Metro Spinning Ltd. PHARMACUTICLES & CHEMICALS Square Pharmaceuticals Ltd ACI Ltd Beximco Pharmaceuticals Ltd Reckitt Benckiser ( Bangladesh) Ltd. Norhern General Insurance Co. Malek Spinning MIlls Ltd. Ltd. Ambee Pharmaceuticals Ltd Kohinoor Chemical Co. ACI Formulations Ltd. 52 . Keya Detergent Ltd. (Bd) Ltd Libra Infusions Ltd The Ibn Sina Pharmaceutical Industry Ltd. Dulamia Cotton Spinning Mills Ltd Beximco Synthetics Ltd Bextex Ltd Sonargaon Textiles Ltd Delta Spinners Ltd H. Textile Mills Ltd Saiham Textile Mills Ltd Safko Spinning Mills Ltd. Maksons Spinning Mills Ltd. Active Fine Chemicals Ltd Salvo Chemical Industry Ltd. Mithun Knitting and Dyeing (CEPZ) Ltd. Standard Insurance Ltd. Mercantile Insurance Company Ltd. Ltd. Islami Insurance Bangladesh Ltd. Keya Cosmetics Ltd.Spinning Mills Ltd. Provati Insurance Company Ltd. Republic Insurance Co. Tallu Spinning Mills Ltd. Square Textiles Ltd. Asia Insurance Ltd. R.Takaful Islami Insurance Ltd.

I. M. LEATHER & FOOTWEAR 53 . Bangladesh Welding Electrodes Ltd. Ltd Rahima Food Corporation Ltd Fu-Wang Foods Ltd. Singer Bangladesh Ltd. Alam Cold Rolled Steels Ltd. Beach Hatchery Ltd. ENGINEERING & ELECTRICAL PRODUCTS Aziz Pipes Ltd Quasem Drycells Limited Anwar Galvanizing Ltd Aftab Automobiles Limited Olympic Industries Limited Bangladesh Thai Aluminium Ltd Bangladesh Autocars Ltd Bangladesh Lamps Ltd Kay & Que (Bangladesh) Ltd Eastern Cables Limited Rangpur Foundry Ltd. CVO Petrochemical Refinery Ltd. Navana CNG LTD. Golden Son Limited BSRM Steels Ltd.FOODS & ALLIED PRODUCTS Apex Foods Limited Agricultural Marketing Co. National Tea Co. S.Ltd.Cement Factory Ltd. Fine Foods Limited CEMENT Confidence Cement Ltd Heidelberg Cement Bangladesh Ltd Meghna Cement Mills Ltd Aramit Cement Limited Lafarge Surma Cement Ltd. Bangas Ltd.

MUTUAL FUNDS 1st Icb Mf 2nd Icb Mf 3rd Icb Mf 4th Icb Mf 5th Icb Mf 6th Icb Mf 7th Icb Mf 8th Icb Mf 1st BSRS Mutual Fund (Asset Manager of Bangladesh Development Bank Ltd. Meghna Petroleum Ltd. FUEL & POWER Padma Oil Company Ltd BOC Bangladesh Ltd Summit Power Ltd. Ltd. PAPERS & PRINTING Sinobangla Industries Ltd Miracle Industries Ltd.) ICB AMCL ISLAMIC MUTAL FUND (Asset Manager of ICB Asset Management Company Ltd. United Airways (BD) Ltd.) 54 . Khulna Power Company Ltd.) ICB AMCL First Mutual Fund (Asset Manager of ICB Asset Management Company Ltd. (DESCO) Power Grid Company of Bangladesh Ltd. Bata Shoe Co.) Grameen Mutual Fund One (Asset Manager of AIMS of Bangladesh Ltd.Apex Tannery Ltd Apex Adelchi Footwear Limited Legacy Footwear Ltd. Ocean Containers Ltd. Titas Gas Transmission & Distribution Co.) Aims First Guaranteed Mutual Fund ( Asset Manager of AIMS of Bangladesh Ltd. SERVICES & PROPERTY DEVELOPMENT Eastern Housing Ltd Samorita Hospital Ltd Summit Alliance Port Ltd. Hakkani Pulp & Paper Mills Ltd. Jamuna Oil Comapny Ltd. ( Bangladesh) Ltd. Dhaka Electric Supply Company Ltd.

Ltd.ICB AMCL First NRB Mutual Fund (Asset Magaer of ICB Asset Management Compnay Ltd. National Credit & Commerce Bank Ltd.) ICB AMCL Third NRB Mutual Fund (Asset Manager of ICB Asset Mangemnet Company Ltd.) EBL First Mutual Fund ( Asset Manager of Race Management PCL) ICB AMCL 2ND Mutual Fund (Asset Manager of ICB Asset Management Company Ltd.) BANKING AB Bank Ltd National Bank Ltd United Commercial Bank Ltd Rupali Bank Ltd The City Bank Ltd Pubali Bank Ltd Islami Bank Bangladesh Ltd IFIC Bank Ltd Al-Arafah Islami Bank Limited Prime Bank Ltd.) DBH First Mutual Fund (Asset Manager of LR Global Bangladesh Asset Management Company Ltd.) Prime Finance First Mutual Fund (Asset Manager of ICB Asset Management Co. Southeast Bank Ltd.) Popular life First Mutual Fund (Asset Manager of RACE Managemenet PCL) IFIL Islamic Mutual Fund-1(Asset Manager of ICB Asset Management Co. Dhaka Bank Ltd.) PHP First Mutual Fund (Asset Manager of RACE Management PCL) AIBL 1st Islamic Mutual Fund (Asset Manger of LR Global Bangladesh Asset Management Co. Standard Bank Limited 55 .) Grameen One "Scheme Two" (Asset Manager of AIMS of Bangladesh Ltd.) MBL 1st Mutual Fund ( Asset Manager of LR Global Bangladesh Asset Management Co.Ltd.) ICB AMCL Second NRB Mutual Fund (Asset Manger of ICB Asset Management Company Ltd. Ltd. Dutch. Ltd.) First Janata Bank Mutual Fund (Asset Manager of Race Management PCL)Green Delta Mutual Fund (Assedt Manager of LR Global Bangladesh Asset Management Co. Mutual Trust Bank Ltd.) IFIC Bank First Mutual Fund (Asset Manager of RACE Management PCL) Phoenix Finance 1st Mutual Fund ( Asset Manager of ICB Asset Management Company Ltd.Bangla Bank Ltd.) ICB Employees Provident Mutual Fund One : Scheme One Trust Bank 1st Mutual Fund (Asset Manager of Race Management PCL) Prime Bank 1ST ICB AMCL Mutual Fund( Asset Manager of ICB Asset Management Company Ltd. Ltd.

One Bank Ltd. Lanka Bangla Finance Ltd. The Premier Bank Ltd. Phoenix Finance & Investments Ltd. Daffodil Computers Ltd LEASING & FINANCE Investment Corporation of Bangladesh IDLC Finance Ltd Uttara Finance and Investments Ltd First Lease Finance & Investment Ltd. Shahjalal Islami Bank Ltd. Agni Systems Ltd. Exim Bank Ltd. Islamic Finance and Investment Ltd. First Security Islami Bank Ltd CERAMICS Monno Ceramic Industries Ltd Standard Ceramic Industries Ltd Fu-Wang Ceramic Industry Ltd Shinepukur Ceramics Ltd. People's Leasing and Financial Services Ltd. Trust Bank Ltd. Bangladesh Finance and Investment Compnay Ltd. FAS Finance & Investment Ltd. Eastern Bank Ltd. Jamuna Bank Ltd. IPDC of Bangladesh Ltd. RAK Ceramics (Bangladesh) Ltd.Ltd. Premier Leasing & Finance Ltd. Mercantile Bank Limited Uttara Bank Ltd. Union Capital Ltd. Prime Finance & Investment Ltd. 56 . Bangladesh Industrial Finance Co. I CT Information Services Network Ltd BDCOM Online Ltd Intech Online Ltd. Bank Asia Ltd. Social Islami Bank Ltd. International Leasing and Financial Services Ltd. Midas Financing Ltd. BRAC Bank Ltd.

Deshbandhu Polymer Ltd. MISCELLANEOUS Usmania Glass Sheet Factory Ltd Aramit Ltd BEXIMCO Ltd. Bay Leasing & Investment Ltd. CORPORATE BOND IBBL MUDARABA PERPETUAL BOND ACI 20% Convertible Zero Coupon Bonds Subordinated 25% Convertable Bonds of BRAC Bank Ltd. Ltd. National Housing Finance and Investments Ltd.Delta Brac Housing Finance Corporation Ltd. TELECOMMUNICATION GPGrameenphone Ltd. Bangladesh Shipping Corporation National Polymer Industries Ltd GQ Ball Pen Industries Ltd Imam Button Industries Ltd British American Tobacco Bangladesh Co. 57 .