SEC Quarterly Review 

Jan-March 2002 


Surveillance: Constant real time monitoring of the trading of Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd. through non-trading version of Work Stations is continuing unabated. The surveillance staff time to time inform the top management of the commission about the market condition who then, if necessary, discuss with the management of the respective Exchanges. At the end of the trading, a report pointing out any abnormal activity found during the trading is prepared and submitted to the Chairman and the members of the Commission.


Analysis of trading data: Post trading analysis is still continuing at the surveillance department and in this connection relevant data and trading information are regularly collected from the Exchanges based on which analysis and calculation are done sometimes manually and sometimes with the help of software. The purpose of this post trading analysis is to find out the unusual behavior of trading. If any abnormal trend or volatility in terms of turnover and price movement is noticed, a primary inspection is conducted in order to ascertain the reason behind such volatility and when anything is suspected wrong, the matter is referred to the higher authority for further action.

Based on the information collected from the CSE on-line Surveillance Software the Surveillance Department of the Commission inspected the books and records of a brokerage house of CSE in respect of price fall of Keya Cosmetics shares. A report was submitted to the Commission in this regard based on which legal action against the broker is in process.

While monitoring the activities of the Surveillance Department of DSE it appeared that DSE on-line Surveillance Software was faulty and generating wrong/misleading information. Surveillance Department of the Commission enquired the matter and found that DSE installed faulty Surveillance Software and continued surveillance activities on the basis of suspicion instead of any correction of the said faulty software. The inspection team submitted a report to the Commission in this regard based on which the Commission removed the former CEO of DSE as per the securities law and also a legal action against the former IT Director of DSE is in process.