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Dhaka Stock Exchange: History Formation Functions & Management

Dhaka Stock Exchange
Dhaka Stock Exchange Limited(DSE): There are two stock exchanges in Bangladesh. And the Dhaka Stock Exchange Limited is one of the most important organizations in the financial sector in Bangladesh.

Dhaka Stock Exchange is also the largest stock exchange in Bangladesh.

In this article, We are going to cover a detailed report on Dhaka Stock Exhange(DSE). 

A Brief History of DSE:
The Dhaka Stock Exchange which is located in Motijheel, Dhaka is one of the two great exchanges of Bangladesh. The DSE first started formal trading in 1956 at Naryangong.

It was first incorporated as East Pakistan Stock Exchange Association Ltd on 28 April 1954. The name East Pakistan Stock Exchange Ltd renamed on 23 June 1962. On 13 May 1964, it was again renamed as Dacca Stock Exchange.

The Dhaka Stock Exchange was stopped for five years after the liberation war in 1971. The Dhaka Stock Exchange was restarted after the liberation war in Bangladesh in 1976. The formula of share price indexing changed according to the IFC in 1993.

On 10 August 1998, the Dhaka Stock Exchange has initiated the automated trading system and this system was started completely on 1 January 2001. On 24 January 2004, a Central Securities Depository system was initiated by Dhaka Stock Exchange.

The Benchmark index of the Dhaka Stock Exchange crossed total 4000 points for the first time as of 16 November 2009.

In 2010, the benchmark indexing crossed total 8500 points and finally it was crashed in the first time in the history of Dhaka Stock Exchange.

It was crashed in 2011. Millions of investors in Bangladesh lost their money and they came out onto the street blaming the regulators of Dhaka Stock Exchange.

The crashed in the Dhaka Stock Exchange became known as the Bangladesh Share market scam 2011. Currently, there are 553 listed companies and total 22 industrial sectors in the DSE.


Dhaka Stock Exchange

The Major Functions of Dhaka Stock Exchange:
          -Listing of all companies.
          -Settlement of trading in Share market.
          -Providing the facilities of the screen based automated trading securities.
          -Share Market Administration and Controlling.
          -Share Market observation or Surveillance.
          -Every Monthly Review Publication.
          -Monitoring the every activity of the listed companies.
          -Investors representation or grievance cell.
          -Investors Protection Fund.
          -Announcement of price up and down or other information about the 
            listed companies by online.

Formation of Dhaka Stock Exchange:
If you want to get Dhaka Stock Exchange short history, this article will be perfect for you.

You may know that Dhaka Stock Exchange is a public limited company and it is formed and managed under the Company Act 1994, SEC Act 1993 and Exchange Commission Regulation 1994 and SEC inside regulation 1994.

The issued capital of the company was TK. 500,000 and it was divided up to the 250 shares and each share pricing was TK. 2000. A firm or individual can buy only one share. According to the share market a member can buy share from first floor by his clients.

Now, in the Dhaka Stock Exchange have 238 members. Now, the capital of Dhaka Stock Exchange reached nearly $9 billion in 2007.

Clearing and Settlement Module of DSE:
The clearing and settlement of module provides the management of trading from the point of entry into the settlement pool trade database until the database has been delivered, removed and settled from the settlement pool.

Clearing means the percipient trading reporting, billing and assigning the settlement instructions.

Dhaka Stock Exchange

Management of Dhaka Stock Exchange:
The management and operation of the Dhaka Stock Exchange is thrown on to a 25 members Board of Directors. Among them 12 members are elected from DSE members and another 12 members are elected from relevant organizations.

Number of 25th member is CEO and he is an ex officio member of the board. The following organizations are holding the positions currently in DSE Board. The list is below...

  • Bangladesh Central Bank
  • Investment Corporation of Bangladesh (ICB)
  • President of Institute of Charted Accountants of Bangladesh (ICAB)
  • President of Federation of Bangladesh Chambers of Commerce and Industries (FBCCI)
  • President of Metropolitan Chambers of Commerce and Industries (MCCI)
  • President of DCCI
  • Professor of Finance Department of Dhaka University.

Trading System of Dhaka Stock Exchange:
Dhaka Stock Exchange is open Sunday through Thursday for trading between at 10.30 am to 2.30 pm. The Dhaka Stock Exchange is open for trading between 10.30 am to 1.30 pm in the month of Ramadan.

Stock Trading

There is lot of things should learn for doing share market business. If you think, you will buy and sell share/stock, you must have lot of knowledge about the situation of Bangladesh Share Market.

The more you will know efficiently, The more you can do skillfully.