This presentation summarizes information about the stock market in Bangladesh. It introduces the group members and was submitted to Md. Mosleh Uddin. It defines the stock market and notes that the Bangladesh Securities and Exchange Commission regulates the Dhaka Stock Exchange and Chittagong Stock Exchange. It describes the primary and secondary markets and how SEC regulates the stock exchanges. The functions, problems, and suggestions to improve the stock market in Bangladesh are also summarized.
What is a
stock
market?
•A stock market or equity market is
a market for the trading of
company stock (shares) and
derivatives at an agreed price.
• The Bangladesh Securities and
Exchange Commission (BSEC) is
the regulator of the capital
market of Bangladesh,
comprising Dhaka Stock
Exchange (DSE) and Chittagong
Stock Exchange (CSE). The
Commission is a statutory body
and attached to the Ministry of
Finance.
Securities and Exchange
Commission(SEC)
• It is the regulatory body of Bangladesh capital
market. SEC Regulating the DSE (Dhaka Stock
Exchange) and CSE (Chittagong Stock
Exchange)
• SEC defines working process and rules and
policies under which the stock exchanges will
operate.
Structure of stockMarket
The Primary Market
• The primary market deals with newly issued
securities and is responsible for generating new long-
term capital.
The secondary
• The secondary market handles the trading of
previously-issued securities, and must remain highly
liquid in nature because most of the securities are
sold by investors.
10.
Functions Of StockMarket
•It provide ready market for securities
•It helps in price discovery of securities.
•It insure low cost of raising finance issue of new market
instruments in the market
•Helps in capital generation process.
•Encourages capital formation
•Provides proper direction to invest capital
•Promotion of investment.
•Help capital formation.
•Give mobility to capital.
•Exercise control over the working of
companies.
11.
Problems Of StockMarket In Bangladesh
• 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
• .Delays in Settlement:Financing procedures and delivery of
securities sometimes take an unusual long time for which the
money is blocked from nothing
• .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, CSE look for their own interest using
their internal information of share market
12.
Suggestions to improvethe activities
of Stock Market
• To introduce automated monitoring system that may
control price manipulation
• To introduce full computerized system for settlement of
transactions.
• To force the listed companies to publish their annual reports
with actual and proper information.
• Banks, insurance companies and other financial institution
should be encouraged deal in share business directly.
• To take remedial action against the issues of fake certificates.
• The management of DSE and CSE should be vested with
professionals and should not in any way be linked with the
ownership of stock exchange and other firms