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 exchange were suspended when Bangladesh gained independence. In 1976 trading activities were resumed again with only 9 listed companies. As on 30th June, 2001 there were 244 securities listed with DSE against which total issued capital of all listed securities was Tk.32,227 million and market capitalization of Tk.72,168 million as against Tk.30,517 million and Tk.54,004 million respectively on 30th June, 2000. The trading operations of the exchange is fully automated from August 1999.

The Dhaka Stock Exchange is a self regulated non-profit organization. It has provision for 500 members. At present the number of members  is 195. Membership is open for the foreigners also. The Exchange has a 24 member Council, of which 12 are elected from the members and 12 are non-members nominated   from different apex body. 

The authorized and paid up capital of  DSE are Tk.1.00 million and Tk. 0.39 million respectively. 

As per DSE article 105 B its management is separated from the Council. The executive power of the DSE is vested with the Chief Executive Officer (CEO). The CEO is appointed by the Council with the approval of SEC. 
 
CHITTAGONG STOCK EXCHANGE (CSE)

The Chittagong Stock Exchange (CSE) was registered as a public limited company. It was incorporated in April 1995. As on 30th June, 2001 there were 171 securities listed with CSE and issued capital of all securities was Tk.27,350 million which was Tk. 26,655 million on 30th June 2000.  Total market capitalization of all securities on 30th June 2001 stood at Tk.62,820 million which was Tk.44,480 million on 30th June 2000. The trading operations of the exchange is fully automated from 1998.

CSE is a self-regulated non-profit organization. A 24 member Board of Directors manage its business out of which 12 are elected from  the  members, and 12 are nominated from the non-members by SEC. The number of members is 129. The foreigners can also become  member of CSE. It has provision for 500 members; all members shall be body corporate. 

The executive power of CSE is vested with the  Chief Executive Officer (CEO). The CEO is appointed by the Board with the consent of SEC. The authorized and paid up capital of CSE are Tk.150.00 million and Tk.38.40 million respectively. 

Bond Market: 

Presently equity shares, mutual funds and debentures are traded in the stock exchanges. The present volume of debenture in  the  market  is limited. In the absence of definite rules for issuance  and operation of debenture/bonds the issuers are not  coming forward for  raising  capital  under this  mechanism as  expected. In  order to encourage issuance of  bond  and  to  overcome  related   barriers   and  transaction  of  such  bonds detailed  rules is  under  preparation  with  the

assistance of the World Bank. It is excepted that the  rules will be final by the mid of the year 2002 which is expected to facilitate issuance of bond in the market. 
 

Corporate governance :

In order to ensure good corporate governance in the operation of the listed companies, transparency in their financial statements, proportionate representation of the general shareholders in the Board of Directors, holding regular annual general meeting as per law, payment of dividend as declared have already been enforced by the SEC. A technical assistance project under financial support of the Asian Development Bank  will start soon to consolidate and facilitate good corporate governance.

Depository:

The Central Depository System (CDS) could not start operation in this year due to non-raising of capital fund and non-compliance of rules. It is expected that in the next financial year the CDS will be operational.
 

Mutual Fund and Asset Management:

During the period the Commission accorded registration to the custodian, trustee and asset management company of Grameen  Mutual Fund-I.  The Commission also approved the Trust Deed and the Investment Management Agreement of the said Fund. On 6th June, 2001 the new SEC (Mutual Fund) Rules, 2001 was sent for gazette notification which fixes the paid up capital and the minimum net worth amount of  all parties concerned.

Merchant Bank:

There are at present 28 companies who have obtained registration to work as merchant bankers. However not all the 28 companies are full fledged merchant bankers & portfolio managers. The breakdown is as follows:-

a. Full fledged merchant banker & portfolio manager - 21
b. Only issue manager                                                 -   5
c. Issue manager & underwriter                                   -   2
                                                            Total                 - 28

Bangladesh Association of Publicly Listed Companies (BAPLC) :

An Association titled “ Bangladesh Association of Publicly Listed Companies” has been formed by the public limited companies listed in the stock exchanges. Both  the  Commission and  the  said Association interact each  other on  matters of  common  interest relating to the  capital market from time to time. BAPLC’s  certain  suggestions found  appreciable and  valuable. On the  other hand, BAPLC has also appreciated most of the measures taken by the Commission in the interest 
of both the capital market and the investors.