DHAKA STOCK EXCHANGE Introduction to DSE The Necessity Of Establishing A Stock Exchange In The Then East Pakistan Was First Decided By The Government When, Early In 1952.It Was Learnt That The Calcutta Stock Exchange Had Prohibited The Transactions In Pakistani Shares And Securities. The Provincial Industrial Advisory Council Soon Thereafter Set Up An Organizing Committee For The Formation Of A Stock Exchange In East Pakistan. A Decisive Step Was Taken The Second Meeting Of The Organizing Committee Held On The 13th March ,1953. In The Cabinet Room, Eden Building ,Under The Chairmanship Of Mr. A . Khaleeli, Secretary Government Of East Bengal , Commerce, Labor And Industries Department At Which Various Aspects Of The Issue Were Discussed In Detail. The Then Central Governments Proposal Regarding The Karachi Stock Exchange Opening A Branch At Dhaka. , Did Not Find Favour With The Meeting Who Felt That East Pakistan Should Have An Independent Stock Exchange . It Was Suggested That Dhaka Narayanganj Chamber Of Commerce & Industry Should Approach Its Members For Parchase Of Membership Cards At RS.2000 Each For The Proposed Stock Exchange. The Location Of The Exchange It Was Thought Should Be Either Dhaka Narayanganj Or Chittagong . An Organizing Committee Was Appointed Consisting Of Leading Commercial And Industrial Personalities Of The Province With Mr. Mehdi Ispahani As The Convener In Order To Organize The Exchange. The Chamber Informed Its Members And Members Of Its Affiliated Associations Of The Proceedings Of The Above Meeting ,Requesting Them To Intimate Whether They Were Interested In Joining The Proposed Stock Exchange. This Was Followed By A Meeting , At The Chamber Of About 100 Persons Interested In The Formation Of The Exchange On 07.07.1953. 1
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DHAKA STOCK EXCHANGE
Introduction to DSE
The Necessity Of Establishing A Stock Exchange In The Then East Pakistan Was First Decided By The Government When, Early In 1952.It Was Learnt That The Calcutta Stock Exchange Had Prohibited The Transactions In Pakistani Shares And Securities. The Provincial Industrial Advisory Council Soon Thereafter Set Up An Organizing Committee For The Formation Of A Stock Exchange In East Pakistan. A Decisive Step Was Taken The Second Meeting Of The Organizing Committee Held On The 13th March ,1953. In The Cabinet Room, Eden Building ,Under The Chairmanship Of Mr. A . Khaleeli, Secretary Government Of East Bengal , Commerce, Labor And Industries Department At Which Various Aspects Of The Issue Were Discussed In Detail. The Then Central Governments Proposal Regarding The Karachi Stock Exchange Opening A Branch At Dhaka. , Did Not Find Favour With The Meeting Who Felt That East Pakistan Should Have An Independent Stock Exchange . It Was Suggested That Dhaka Narayanganj Chamber Of Commerce & Industry Should Approach Its Members For Parchase Of Membership Cards At RS.2000 Each For The Proposed Stock Exchange. The Location Of The Exchange It Was Thought Should Be Either Dhaka Narayanganj Or Chittagong . An Organizing Committee Was Appointed Consisting Of Leading Commercial And Industrial Personalities Of The Province With Mr. Mehdi Ispahani As The Convener In Order To Organize The Exchange.
The Chamber Informed Its Members And Members Of Its Affiliated Associations Of The Proceedings Of The Above Meeting ,Requesting Them To Intimate Whether They Were Interested In Joining The Proposed Stock Exchange. This Was Followed By A Meeting , At The Chamber Of About 100 Persons Interested In The Formation Of The Exchange On 07.07.1953. The Meeting Invited 8 Gentleman To Become Promoters Of The Exchange With Mr. M Mehdi Ispahani As The Convener And Authorized Them To Draw Up The Memorandum And Article Of Association Of The Exchange And Proceed To Obtain Register Under The Companies Act.1913. The Other 7 Promoters Of The Exchange Were Mr. J M Addision-Scott, Mr. Mhodammed Hanif, Mr. A C Jain, Mr. A K Khan , Mr M Shabbir Ahmed And Mr. Sakhawat Hossin.
It Was Also Decided That Membership Fee Was To Be Rs.2000 And Subscription Rate At 15 Per Month. The Exchange Was To Consist Of
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Not More Than 150 Members. A Meeting Of The Promoters Was Held At The Chamber On 03.09.1953 When It Was Decided To Appoint Orr Dignam & Co., Solicitors To Draw Up The Memorandum And Articles Of Association Of The Stock Exchange Based On The Rules Of Stock Exchange Existing In Other Countries And Taking Into Account Local Conditions.
The 8 Promoters Incorporated The Formation As The East Pakistan Stock Exchange Association Ltd. On 28.04.1954. As Public Company.On 23.06.1962 The Name Aws Revised To East Pakistan Stock Exchange Ltd. Again On 14.05.1964 The Name Of East Pakistan Stock Exchange Limited Was Changed To “ Dhaka Stock Exchange Ltd.”
At The Time Of Incorporation The Authorized Capital Of The Exchange Was Rs. 300000 Divided Into 150 Shares. Of Rs. 2000 each and by an extra ordinary general meeting adopted at the extra ordinary general meeting held on 22.02.1964 the authorised capital of the exchange was increased to Tk. 500000 divided into 250 shares of Tk. 2000 each. The paid up capital of the exchange now stoods at Tk.460000 dividend into 230 shares of Tk. 2000 each. However 35 shares out of 230 shares were issued at TK. 80,00,000 only per share of TK. 2000 with a premium of TK. 79,98,000 .Although incorporated in 1954, the formal trading was started in 1956 at Narayanganj after obtaining the certificates of commencement of business. But in 1958 it was shifted to Dhaka and started functioning at the Narayangonj chamber building in Motijheel C/A.
On 1.10.1957 the stock exchange purchase a land measuring 8.75 Kattah at 9F Motijheel C/A from the Government and shifted the stock Exchange to its own location in 1959.
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, 1969, Companies Act 1994 & Securities & Exchange Commission Act, 1993.
Functions of DSE
The major functions are:
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- Listing of Companies.(As per Listing Regulations).- Providing the screen based automated trading of listed Securities.- Settlement of trading.(As per Settlement of Transaction Regulations)- Gifting of share / granting approval to the transaction/transfer of share outside the trading system of the exchange (As per Listing Regulations 42)- Market Administration & Control.- Market Surveillance.- Publication of Monthly Review.- Monitoring the activities of listed companies. (As per Listing Regulations).- Investors grievance Cell (Disposal of complaint bye laws 1997).- Investors Protection Fund (As per investor protection fund Regulations 1999)-Announcement of Price sensitive or other information about listed companies through online.
Company Listing by Alphabetical Order:
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | #
A B C
ABBANK (AB Bank )ACI (ACI Limited. )AFTABAUTO (Aftab Automobiles )AGNISYSL (Agni Sytems Ltd. )
BANGAS (Bangas )BANGLAPRO (Bangla Process )BANKASIA (Bank Asia Ltd. )BATASHOE (Bata Shoe )BATBC (BATBC )
CENTRALINS (Central Insurance )CHICTEX (Chic Tex Ltd. )CITYBANK (City Bank )CMCKAMAL (CMC Kamal )CONFIDCEM (Con
SAMATALETH (Samata Leather )SAMORITA (Samorita Hospital )SANDHANINS (Sandhani Life Insurance )SAVAREFR (Savar Refractories )SHAHJABANK (Shahjalal Islami Bank Ltd. )SHINEPUKUR (Shinepukur Holdings Limited )SHYAMPSUG (Shaympur Sugar )SINGERBD (Singer Bangladesh )SINOBANGLA (Sinobangla Industries )SOCIALINV (Social Investment Bank )SONALIANSH (Sonali Aansh )SONALIPAPR (Sonali Paper )SONARBAINS (Sonar Bangla Insurance Ltd. )SONARGAON (Son
070205 )T10Y0216 (10 Years 8.5% BGT Bond Issued 13022006 )T10Y0217 (10 Years 8.5% BGT Bond Issued 07.02.2007 )T10Y0414 (10 Years 8.5% BGT Bond Issued 050404 )T10Y0415 (10 Years 8.5% BGT Bond Issued 040405 )T10Y0416 (10 Years 8.5% BGT Bond Issued 10042006 )T10Y0614 (10 Years 8.5% BGT Bond Issued 070604 )T10Y0615 (10 Years 8.5% BGT Bond Issued 060605 )T10Y0616 (10 Years 8.5% BGT Bond Issued
argaon Textiles )SOUTHEASTB (Southeast Bank )SQUARETEXT (Square Textile )SQURPHARMA (Square Pharmaceuticals Ltd. )SREEPURTEX (Sreepur Textile )STANCERAM (Standard Ceramic )STANDBANKL (Standard Bank Limited )STYLECRAFT (Stylecraft Limited )SUMITPOWER (Summit Power Limited )
12062006 )T10Y0814 (10 Years 8.5% BGT Bond Issued 020804 )T10Y0816 (10 Years 8.5% BGT Bond Issued 07.08.2006 )T10Y0916 (10 Years 8.5% BGT Bond Issued 06.09.2006 )T10Y1014 (10 Years 8.5% BGT Bond Issued 041004 )T10Y1016 (10 Years 8.5% BGT Bond Issued 04.10.2006 )T10Y1116 (10 Years 8.5% BGT Bond Issued 08.11.2006 )T10Y1213 (10 Years 8.5% BGT Bond Issued 291203 )T10Y1214 (10 Years 8.5% BGT Bond Issued
061204 )T10Y1215 (10 Years 8.5% BGT Bond Issued 121205 )T10Y1216 (10Years 8.5% BGT Bond Issued 06.12.2006 )T5Y0112 (5 Years 7.5% BGT Bond Issued 24.01.2007 )T5Y0209 (5 Years 7.5% BGT Bond Issued 090204 )T5Y0210 (5 Years 7.5% BGT Bond Issued 070205 )T5Y0211 (5 Years 7.5% BGT Bond Issued 13022006 )T5Y0212 (5 Years 7.5% BGT Bond Issued 22.02.2007 )T5Y0409 (5 Years 7.5% BGT Bond Issued
050404 )T5Y0410 (5 Years 7.5% BGT Bond Issued 040405 )T5Y0411 (5 Years 7.5% BGT Bond Issued 10042006 )T5Y0609 (5 Years 7.5% BGT Bond Issued 070604 )T5Y0610 (5 Years 7.5% BGT Bond Issued 060605 )T5Y0611 (5 Years 7.5% BGT Bond Issued 12062006 )T5Y0809 (5 Years 7.5% BGT Bond Issued 020804 )T5Y0811 (5 Year 7.5% BGT Bond Issued 07.08.2006 )T5Y0911 (5 Years 7.5% BGT Bond Issued
20.09.2006 )T5Y1009 (5 Years 7.5% BGT Bond Issued 041004 )T5Y1011 (5 Years 7.5% BGT Bond Issued 18.10.2006 )T5Y1111 (5 Years 7.5% BGT Bond Issued 22.11.2006 )T5Y1208 (5 Years 7.5% BGT Bond Issued 291203 )T5Y1209 (5 Years 7.5% BGT Bond Issued 061204 )T5Y1210 (5 Years 7.5% BGT Bond Issued 121205 )T5Y1211 (5 Years 7.5% BGT Bonds Issued 20.12.2006 )TALLUSPIN (Tallu Spinning )TAMIJTEX (Tamij
Name of Company Entered Year Company Address Company Catagtory
10 YEARS 8.5% BGT 2005 Bangldesh Bank A
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BOND ISSUED 05040410 YEARS 8.5% BGT BOND ISSUED 07.02.2007
2007 Bangladesh Bank A
10 YEARS 8.5% BGT BOND ISSUED 13022006
2006 Bangladesh Bank A
10 YEARS 8.5% BGT BOND ISSUED 070205
2005 Bangladesh Bank A
10 YEARS 8.5% BGT BOND ISSUED 090204
2004 Bangldesh Bank A
10 YEARS 8.5% BGT BOND ISSUED 10.01.2007
2007 Bangladesh Bank A
10 YEARS 8.5% BGT BOND ISSUED 07.08.2006
2006 Bangladesh Bank A
10 YEARS 8.5% BGT BOND ISSUED 10042006
2006 Bangladesh Bank A
10 YEARS 8.5% BGT BOND ISSUED 020804
2005 Bangladesh Bank A
10 YEARS 8.5% BGT BOND ISSUED 12062006
2006 Dhaka A
10 YEARS 8.5% BGT BOND ISSUED 060605
2006 Bangladesh Bank A
10 YEARS 8.5% BGT BOND ISSUED 070604
2005 Bangldesh Bank A
10 YEARS 8.5% BGT BOND ISSUED 041004
2005 Bangladesh Bank A
10 YEARS 8.5% BGT BOND ISSUED 04.10.2006
2006 Bangladesh Bank A
10 YEARS 8.5% BGT BOND ISSUED 06.09.2006
2006 Bangladesh Bank A
10 YEARS 8.5% BGT BOND ISSUED 08.11.2006
2007 Bangladesh Bank A
NAME ENTER YEAR ADRESS GRADE5 YEARS 7.5% BGT
BOND ISSUED 040405
5 YEARS 7.5% BGT BOND ISSUED
24.01.2007
2007 Bangladesh Bank A
10YEARS 8.5% BGT BOND ISSUED
06.12.2006
2007 Bangladesh Bank A
10 YEARS 8.5% BGT BOND ISSUED
04.10.2006
2006 Bangladesh Bank A
5 YEARS 7.5% BGT 2007 Bangladesh Bank A
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BOND ISSUED 22.02.2007
5 YEARS 7.5% BGT BOND ISSUED
0902045 YEARS 7.5% BGT
BOND ISSUED 050404
5 YEARS 7.5% BGT BOND ISSUED
070205
2005 Bangldesh Bank A
5 YEARS 7.5% BGT BOND ISSUED
10042006
2006 Bangldesh Bank A
5 YEARS 7.5% BGT BOND ISSUED
060605
2006 Bangldesh Bank A
5 YEARS 7.5% BGT BOND ISSUED
12062006
2006 Dhaka A
5 YEARS 7.5% BGT BOND ISSUED
020804 5 YEAR 7.5% BGT
BOND ISSUED 07.08.2006
2006 Bangladesh Bank A
10 YEARS 8.5% BGT BOND ISSUED
08.11.2006
2007 Bangladesh Bank A
10 YEARS 8.5% BGT BOND ISSUED
291203 10 YEARS 8.5% BGT
BOND ISSUED 291203
5 YEARS 7.5% BGT BOND ISSUED
18.10.2006
2006 Bangladesh Bank A
5 YEARS 7.5% BGT BOND ISSUED
291203
2005 Bangldesh Bank A
5 YEARS 7.5% BGT BOND ISSUED
22.11.2006
2007 Bangladesh Bank A
5 YEARS 7.5% BGT BOND ISSUED
061204
2005 Bangldesh Bank A
5 YEARS 7.5% BGT BONDS ISSUED
20.12.2006
2007 Bangladesh Bank A
5 YEARS 7.5% BGT BOND ISSUED
041004: 5 YEARS 7.5% BGT
BOND ISSUED 121205
2006 Bangldesh Bank A
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CSE
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Highlights of CSE Listing Requirements
Companies willing to expand market for their Securities may apply for listing with the Chittagong Stock Exchange (CSE) according to the manner prescribed in the Listing Regulations.
Highlights of the Listing Regulations or CSE are narrated below:
1. Eligibility:
a. The Company has to be a registered Public Limited Company b. Minimum Paid-up capital has to be Tk. 10 million c. Shares to be subscribed by a minimum of 250 nos. of subscribers.
1. Documents:
Papers to be submitted at the time of applying for Listing have been mentioned in the enclosed checklist.
2. Fees:
a. Initial Listing fee: An amount equivalent to one fourth of 1% of total paid-up capital. b. Annual Listing Fee:
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Slab/Paid-up Capital
(Tk. In Million)
Rates of Annual Listing Fees in Taka
Up to 10 10,000
Above 10 & Up to 20 15,000
Above 20 & Up to 30 20,000
Above 30 & Up to 40 25,000
Above 40 & Up to 50 30,000
Above 50 & Up to 75 35,000
Above 75 & Up to 100 40,000
Above 100 & Up to 125 45,000
Above 125 & Up to 150 50,000
Above 150 & Up to 200 55,000
Above 200 & Up to 250 60,000
Above 250 & Up to 300 65,000
Above 300 & Up to 400 70,000
Above 400 & Up to 500 75,000
Above 500 & Up to 600 80,000
Above 600 & Up to 700 85,000
Above 700 & Up to 800 90,000
LAW, RULES AND REGULATIONS
7.1 Current Regulations 7.1.1 Investments 7.1.2 Repatriation of investment funds, dividends and profits7.2 Securities Import/Export Regulations7.3 Investment Restrictions 7.3.1 Direct Investment 7.3.2 Indirect Investment7.4 Insider Legislation 7.4.1 Legal Basis 7.4.2 Definitions 7.4.3 Penalties for Insider offences 7.4.4 Reporting requirements for insiders7.5 Take-over Rules7.6 Reporting requirements 7.6.1 Insider holdings7.7 Transfer of ownership in securities
7.8 Pledging securities as collateral7.9 Lost & Stolen Securities 7.9.1 Register 7.9.2 Cancellation and replacement procedures
7.1 CURRENT REGULATIONS
7.1.1 Investments
Foreign investors are free to make investment in Bangladesh in the industrial enterprises excepting a few reserved sectors e.g. defence equipment. Permission is not required to set up an industrial venture in collaboration with local investors or wholly owned by the foreign investors.
To avail the facilities & institutional support provided by the government, entrepreneurs should apply to the Board of Investment for registration.
7.1.2 Repatriation of investment funds, dividends and profits
There is no restriction on the repatriation of capital invested in Bangladesh.
Foreign companies including banks, insurance companies and other financial institutions are free to remit their post tax profits to their country of origin without prior approval of Bangladesh Bank (the central bank).
No permission is needed for remittances of dividend income to non-residents on their investment in Bangladesh.
7.2 SECURITIES IMPORT/EXPORT REGULATIONS
There is no restriction under the Foreign Exchange Regulation Act on the import of securities into Bangladesh.
Securities can be exported or taken out of Bangladesh without general or special permission of the Bangladesh Bank. Residents in Bangladesh who are holders of foreign securities and who wish to send the securities to banks, brokers or agents abroad for the purpose of sale, transfer etc. should apply to the Bangladesh Bank through an Authorised Foreign Exchange Dealer for necessary export permit. Permission for transfer of such securities will be granted provided the Authorised Dealer gives an undertaking that the securities will be received back in Bangladesh within a specified period, or in the case of sale, the foreign currency proceeds of the sale will be repatriated to Bangladesh. Bangladesh Bank also considers applications for the exchange of foreign shares and/or
securities held by residents abroad. Applications for this purpose should be made through an Authorised Dealer or Stock and Share Broker. Such applications will be considered favourably provided the Bangladeshi shares/securities to be imported from abroad are approximately of the same market value as foreign shares and/or securities that are desired to be exported.
7.3 INVESTMENT RESTRICTIONS
7.3.1 Direct Investment
By non Residents
A non-resident can invest in the primary market. At present a quota of 10% of the total amount of IPO are reserved for Non-Resident Bangladeshis (NRBs). Non-resident Bangladeshi may apply either directly by enclosing a foreign demand draft drawn on a bank payable at Dhaka, or through a nominee by paying through a foreign currency deposit account maintained in Bangladesh.
Investment in the secondary market can be made through a licensed stock broker and custodian bank.
See also 7.1 and 7.2
7.3.2 Indirect Investment
By non-residents
Non-residents may buy Bangladeshi Securities in Bangladesh against freely convertible foreign currency remitted from abroad through the banking channel. Transaction related to such investment including repatriation of dividend, interest earning and sales proceed are made through a Non-resident Investor’s BDT Account (NITA).
Indirect Investment abroad by domestic investors
See 7.2
7.4 INSIDER LEGISLATION
7.4.1 Legal Basis
The legal basis of insider legislation is covered by the Securities and Exchange Commission (Prohibition of Insider Trading) Regulations, 1995. The authority of these
regulations is conferred by section 25 of the SRO No 149-Law /95-Securities and Exchange Commission law, 1993,
7.4.2 Definitions
Insider
An insider is such a person who:
- is a director, controlling shareholder, managing agent, banker, auditor, consultant, officers and employee of a Company
-by virtue of his relationship with the above persons or with the company or by the dint of his position, his come into the possession of unpublished price sensitive information or who may reasonably expected to have access to such information.
Insider dealing
Insider dealing means the purchase or sale or otherwise transfers of a company securities made on the basis of unpublished price sensitive information.
7.4.3 Penalties for Insider offences
An insider trading offence is punishable with imprisonment for a term of maximum 5 years or a fine of upto BDT 0.5 million, or both.
7.4.4 Reporting requirements for insiders
A company must report to the Securities and Exchange Commission, Registrar of Joint Stock Companies and the Stock Exchanges the following:
- Any change in its Board of Directors.
A report on each director, officer and/or other shareholder of the company who is or has been the beneficial owner of any class of the company’s listed security of five percent (5%) or above at any point of time. The report should be submitted within the first week of every month.
- All companies listed on the stock exchanges shall submit to the Commission a report in case of every transfer of share by the company’s sponsors (which include every director, promoter and officer) within seven days of such transfer.
7.5 TAKE-OVER RULES
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In Bangladesh there are no explicit rules governing take over. In an implicit form they are regulated by Companies Act 1994 and other Regulatory Act
7.6 Reporting requirements
7.6.1 Insider holdings
See 7.4.4
7.7 Transfer of ownership in securities
Each Security Certificate has an attached transfer deed, popularly known as Form 117. The form details the name of the holder and the scrip and contains the verified signature of the current holder. No stamp duty is payable on the transfer deed. Application for transfer may be made either by the transferor or the transferee.
No fees may be charged for transfer.
The company may give 7 day’s previous notice by advertisement in some newspaper prior to closure of share transfer books for any time or times not excluding in the whole forty five days in each year but not exceeding thirty days at a time. The companies listed in Chittagong Stock Exchange shall give a minimum of 14 days notice to the Exchange prior to closure of share transfer books for any purpose.
7.8 Pledging securities as collateral
Shareholder has to apply to the financial institution along with the Certificate with the signature verified transfer deed. The bank seeks a No- Objection -Certificate for the proposed lien.
The central bank’s regulations allow commercial bank to advance 60% of the average market value of the pledged stocks during the last 6 months. Maximum amount a bank can advance to one investor is 0.25 million BDT.
A Stock Broker can receive maximum of 0.75 million BDT. While pledging, a Stock Dealer/Broker has to submit to the bank the original license received from the Securities & Exchange Commission.
In case of a certificate is lost or stolen, the owner has to lodge complaint to the police station, notify the company and Stock Exchanges.
Stock Exchanges maintain register of the lost and stolen certificates.
7.9.2 Cancellation and replacement procedures
The company issues duplicate share with or without any fees
FINDINGS
We observe that DSE have 322 listed companies. On the other hand, in CSE there are 215 listed companies.
In DSE all listed company have segregate on basis of different classes like bank sector, food, fuel, investment, & so on.But in CSE there are no different classes existing in this stock market.
DSE has a greater market field then CSE.
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RECOMMENDATION
We want to tell that DSE is a better stock market. Because all information of each company are available in there wave site. So it is very easy for every customer to take decision on the basis of company’s available information.
CSE is not well organized stock exchange. They have some limitation but they always try to set there activities as like DSE.