SEC Annual Report,1997-98 


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 Exchanges was suspended when Bangladesh gained independence. In 1976, trading activities were resumed again with only 9 Listed Companies and as paid-up capital only Tk 132 million. By as on 30th June, 1998 there were 224 Securities listed on the DSE with a market capitalization of Taka 62,264.37 million.

The Dhaka Stock Exchange is a self regulated non-profit making organization It has provisions for 500 Members though at present number of members is 195. Membership is open for the foreigners also. The Exchange has a 24 Members Council, of which 12 are elected from the Members and 6 are nominated as non-Member from different apex body. 

As per DSE Article 105B its management is separated from the council. The executive powers of the DSE is vested in the Chief Executive Officer (CEO). The CEO is appointed by the Board with the approval of SEC.


The Chittagong Stock Exchange (CSE) was registered a Public Limited Company. As on 30th June 1998 there were 144 securities listed with the CSE and market capitalization of all securities was Taka 49,993.37 million.
CSE is also self-regulated non-profit making organization with its own regulations. A 18 Members Board of Directors manages its business, out of 18 Directors, 12 are elected by the General Body, and 6 are nominated by SEC.

The executive powers of the CSE is also vested in a Chief Executive Officer (CEO). The CEO is appointed by the Board with the consent of the SEC.

In the FY 1997-98 Total Issued Capital and Debentures of all Listed Securities with Dhaka Stock Exchange was Taka 30,211.47 Million which was Taka 26,907.42 Million in FY 1996-97. In the Chittagong Stock Exchange the total Issued Capital in FY 1997-98 stood at Taka 23,298.26 Million which was Taka 21,191 Million in the FY 1996-97.

Incentives for the Capital Market : 

The National Budget 1998-99 offers following incentives for developing the Capital Market

  • Undisclosed money invested in Primary and Secondary shares would be allowed without asking about its source. Only the Investors are required to pay @ 7.5% tax and have to retain these securities at least for one year.
  • Corporate Tax Rate for listed Banks, Financial Institutions and Insurance Companies have been reduced from 40% to 35%.
  • Private Mutual Funds are exempted from Income Tax.
  • Dividend declared by companies enjoying tax holiday will count towards the statutory requirement of investment
  • Tax deducted at source @ 10% on the amount of dividend shall be treated as final settlement of tax liability.