The Dhaka Stock Exchange is registered as a public limited company. It was incorporated in 1954 under the name of East Pakistan Stock Exchange. Activities of the exchange were suspended when Bangladesh gained independence. In 1976 trading activities were resumed again with only 9 listed companies. As on 30th June, 2001 there were 244 securities listed with DSE against which total issued capital of all listed securities was Tk.32,227 million and market capitalization of Tk.72,168 million as against Tk.30,517 million and Tk.54,004 million respectively on 30th June, 2000. The trading operations of the exchange is fully automated from August 1999.
The Dhaka Stock Exchange is a self regulated non-profit organization. It has provision for 500 members. At present the number of members is 195. Membership is open for the foreigners also. The Exchange has a 24 member Council, of which 12 are elected from the members and 12 are non-members nominated from different apex body.
The authorized and paid up capital of DSE are Tk.1.00 million and Tk. 0.39 million respectively.
per DSE article 105 B its management is separated from the Council. The
executive power of the DSE is vested with the Chief Executive Officer (CEO).
The CEO is appointed by the Council with the approval of SEC.
The Chittagong Stock Exchange (CSE) was registered as a public limited company. It was incorporated in April 1995. As on 30th June, 2001 there were 171 securities listed with CSE and issued capital of all securities was Tk.27,350 million which was Tk. 26,655 million on 30th June 2000. Total market capitalization of all securities on 30th June 2001 stood at Tk.62,820 million which was Tk.44,480 million on 30th June 2000. The trading operations of the exchange is fully automated from 1998.
CSE is a self-regulated non-profit organization. A 24 member Board of Directors manage its business out of which 12 are elected from the members, and 12 are nominated from the non-members by SEC. The number of members is 129. The foreigners can also become member of CSE. It has provision for 500 members; all members shall be body corporate.
The executive power of CSE is vested with the Chief Executive Officer (CEO). The CEO is appointed by the Board with the consent of SEC. The authorized and paid up capital of CSE are Tk.150.00 million and Tk.38.40 million respectively.
Presently equity shares, mutual funds and debentures are traded in the stock exchanges. The present volume of debenture in the market is limited. In the absence of definite rules for issuance and operation of debenture/bonds the issuers are not coming forward for raising capital under this mechanism as expected. In order to encourage issuance of bond and to overcome related barriers and transaction of such bonds detailed rules is under preparation with the
of the World Bank. It is excepted that the rules will be final by
the mid of the year 2002 which is expected to facilitate issuance of bond
in the market.
Corporate governance :
In order to ensure good corporate governance in the operation of the listed companies, transparency in their financial statements, proportionate representation of the general shareholders in the Board of Directors, holding regular annual general meeting as per law, payment of dividend as declared have already been enforced by the SEC. A technical assistance project under financial support of the Asian Development Bank will start soon to consolidate and facilitate good corporate governance.
Central Depository System (CDS) could not start operation in this year
due to non-raising of capital fund and non-compliance of rules. It is expected
that in the next financial year the CDS will be operational.
Mutual Fund and Asset Management:
During the period the Commission accorded registration to the custodian, trustee and asset management company of Grameen Mutual Fund-I. The Commission also approved the Trust Deed and the Investment Management Agreement of the said Fund. On 6th June, 2001 the new SEC (Mutual Fund) Rules, 2001 was sent for gazette notification which fixes the paid up capital and the minimum net worth amount of all parties concerned.
There are at present 28 companies who have obtained registration to work as merchant bankers. However not all the 28 companies are full fledged merchant bankers & portfolio managers. The breakdown is as follows:-
Full fledged merchant banker & portfolio manager - 21
Bangladesh Association of Publicly Listed Companies (BAPLC) :
Association titled “ Bangladesh Association of Publicly Listed Companies”
has been formed by the public limited companies listed in the stock exchanges.
Both the Commission and the said Association interact
each other on matters of common interest relating
to the capital market from time to time. BAPLC’s certain
suggestions found appreciable and valuable. On the other
hand, BAPLC has also appreciated most of the measures taken by the Commission
in the interest