Problems & Prospects of Bangladesh Capital Market

Bangladeshi Share Market is facing a discomfited situation now. Every day the prices and
values of different shares are falling down. The potential investors in Dhaka Stock
Exchange and Chittagong stock exchange are being depressed by the continuous price
falling.
But what are the problems behind it?
& what are the solutions of it?

As we started our discussion about the problems and prospects of Bangladesh capital
market we have to illustrate some terms and conditions which will make the discussion
simple to understand. And the terms are:

Capital market
Securities market
Flotation cost
Brokers and dealers
Stock exchanges
Trading system
Fundamental Analysis
Listed company or
unlisted company
Stock
Face value (FV) of a
stock
The market value (MV)
of a stock

Market lot (ML)

Earning Per Share (EPS)
Price Earning Ratio
(PER)
Dividend
Stock dividend
Circuit Breaker
Volume
High Price
Low Price
Volume
Trade
52 Weeks Range
Private Placement

Capital Market: The capital market is the market for the instruments representing long
term funds requirement of the corporation. It consists of sprawling complex of
instruments and mechanism whereby intermediate term and long term funds are pooled
and made available to business, government, and individuals.

 Characteristics of Capital market

o The place where debts and equities are traded
o Scope of which is wide
o Sector from where new funds come
o Both negotiated and open market are used
o Demand for the capital market instruments come from individuals &
households; business & financial corporation; central govt.; local
govt.; and foreign govt
o Transaction in open market influence the price and yields of long term
instruments immediately
Capital Market Instruments
o Govt. securities with maturity;
o Long term debt owned by the government;
o Privately owned long term debt
o Long term corporate bonds including corporate mortgage debt;
Common stock and preferred stock etc .
Securities Market: One of the broad parts of the capital market, under which the
determination of price combines with firms action and reaction in the whole capital
market. This market is of two types:
i.
ii.

Primary Market
Secondary Market

i.

Primary Market: primary market is a security market where new

securities are being sold for the first time. It is a market where new issues
of common stock, preferred stock, or bond are sold by the govt. or firms to
acquire new capital. A primary issue occurs when the issuer gets the
proceeds from an initial public offering (IPO) of stocks or bonds. And an
intermediary that finds out the buyers for IPOs is termed as **investment
banker.

ii.

Secondary Market: Primary issues of securities occur frequently. When

an investor buys a security, the seller is another investor. Such trade occurs
in what are called secondary market. When investment bankers underwrite
IPOs in the primary markets the issuer receive the cash proceeds. Here one
investor sells securities to another and the issuing firm is not involved. The
securities continue to trade between investors in a market called secondary
market.

 Activities of Secondary Market

o It brings the investors together so that transaction can be made
immediately at a price that varies little from transaction to transactions
o It gives investors the means to trade existing securities.
o It continues to maintain the marketability of the tradable assets.
o It simulates new financing by encouraging the investors to invest in
IPOs
o Being a self regulatory organization, secondary market regulate and
monitor the activities of members, employees, m listed firms.
Forms of secondary market:
i.
ii.
iii.
iv.

Organized stock exchanges listed securities are traded

OTC market unlisted securities are traded
Third market
Fourth market

Investment Banker: A firm or a financial intermediary specializing in the sale of new

securities to the public investors along with advisory functions, administration functions,
underwriting functions, distribution functions, pricing functions.

Flotation Cost: The underwriter offering the highest net cash proceeds for the IPOs gets
the deal. Investment bankers make profits by selling IPOs at price above what they paid
for them. The difference between buying and selling prices is called the spread. This
spread is divided into 3 parts
o The originator or managing underwriter keeps a certain point for
originating and managing the syndicate
o The entire underwriting group earns a specific percentage of total profit
o The numbers of the selling group earn the remaining portion of the total
profit
Brokers and Dealers: A broker is an intermediary who works as a media to bring
together buyer and seller. And it takes commission form the buy/sales made. A broker
must be listed member of any stock exchange
Stock Exchanges: When securities are traded between investors, issuers no longer
receive any cash proceeds. Investors usually initiate securities purchases in secondary
markets by calling a security brokerage house. In our country there are two stock
exchanges:
i.
Dhaka Stock Exchange
ii.
Chittagong Stock Exchange
Stock: Stock or Share is the smallest part of ownership of an asset/company/firm.
Face value (FV) of a stock: This is the value assigned to a smallest part of ownership of
a company.
For example in case of the previous example I gave the Face Value of a share of
that shop is 100tk.
Market value (MV) of a stock: When someone sees a good business prospect of a
company then he may be will to buy it other than the face value. It may be a higher price.
For example at present SALAM still mill's stock is trading around 190tk. So its
market value (MV) is 190tk now.
Earning Per Share (EPS): Earning per share indicates how much profit is earned per
share.
For example if GQ ball pen is divided in 10 million stock and GQ ball pen
makes a profit of 100million Tk then earning per share of GQ company is
(100million Tk / 10 million shares = 10tk.) 10tk. EPS is calculated through
dividing the total profit buy total number of securities/stock.

Market lot (ML): Every firm has millions of stock in the market. If every piece of stock
is traded separately it will generate tedious clerical job and the system won't support so
many trades per day. Moreover the trading cost per trade will be intolerable. To face such
problem stocks of different companies are traded in bunches. Then every bunch is traded
in the market.
Every bunch is called a lot (market lot).
For example you have to buy at least 50 stocks at a time in a bunch if you want
to buy GQ ball pen's stock. So the market lot (ML) gor GQ ball pen's stock is 50.
Price Earning Ratio (PER): It indicates that what is the price of a stock in relation to
EPS. Say GQ ball pens price is now 140 Tk in the market and it's EPS is 10tk. Then it's
price earning ratio (PER) is (140tk/10tk) 14 times. It also indicates that if someone buy a
GQ ball pen stock for 140tk today the company will earn the same amount of earning for
that stock in 14years
Dividend: Its the portion of profit given to the shareholders. Dividend is usually
expressed in percentage basis or per share basis.
For example now if GQ company declares a 80% dividend to the shareholders it
indicates that every shareholder will get 8tk per share. Dividend is calculated on
Face Value not on the market value. The dividend declaration depends on the
profit earned by the company, companies pay out ratio, investing policy etc.
Stock dividend: In some cases company may earn some profit. But it may need some
extra money for further growth of the company. In that case the company may retain the
profit earned. It wont declare cash dividend. Rather it will declare stock dividend. In that
case an investor will get a few more stock of that company for free.
For example if GQ declares a 80% stock dividend it means if you hold 100stock
of GQ ball pen you will get 80stock for free. This is a very nice system for
company growth. In this system company can retain its needed cash for further
investment and stock holders also get some benefit.
Right issue: In some cases business may need immediate money in the middle of the
year or for any reason. May be it need some more cash for business growth. In that case
the company can issue fresh share in the market. But according to regulation the existing
shareholders have the priority to buy the shares. So when the company decides to issue
new shares in the market at first it offers the shares to existing shareholders of the
company. As existing shareholders get the shares according to their right it is called right
issue. But if the existing shareholders decline to buy the new shares
the company can issue the shares to general public as fresh IPO

Dividend yield: Dividend yield is the return calculated on your buying price resulting
from declared dividend. If ACI company declares a 23% dividend and you buy ACI stock
for 230tk. In that case you will receive 2.3tk as dividend (Face value of ACI stock is 10tk
so 23% on 10tk. is 2.3tk). But as you bought the stock for 230tk your return is not 23%
rather your return is 2.3/230=1% only. This is called dividend yield
Circuit Breaker: This is an automated system introduced by both DSE and CSE. In this
system a specific stock can not increase or decrease more than a specific percentage
point.
For example say previous days close price of Power Grid Company was 710tk.
and the circuit breaker is 10%. It means Power Grid will not rise more than 10%
today even it won't fall more than 10% today. So in a single day its highest price
can be 710+710*10%=781tk and the lowest price will be 639tk. This system is
introduced to tackle unusual volatility in the stock market.
LTP: Last Trade Price of a specific company in a day. The latest trade took place in this
price.
Volume: Volume indicates how many stock of a specific company is traded in a single
trading day.
High Price: This is the highest price of a stock in a single trading day.
Low Price: This is the lowest trade price in a single trading day.
Trade: It indicates how many transaction of a single stock took place in a day.
52 Weeks Range: It means that what was the highest and lowest price of a stock in last
52 weeks.
For example if today (28/03/2008) ACI's 52 weeks range shows 62-235 it means
that ACI stock was traded lowest at 62 tk in last 52weeks and highest 235tk in last
52weeks. Usually it is updated every month on DSE website.
IPO: Initial Public Offering. When any company offers their stock to general public for
the first time it is called Initial Public Offering. A company can offer stock to the public
again and again. Those are called Public Offering
Private Placement: When a company sells it's shares to institutional or individual
investors through private negotiation rather offering their shares to the public it is called
private placement.

Technical Analysis: Technical analysis means analyzing a stocks price trend based on
its recent past trade pattern (investigating volume, price trend, high, low, close etc).
People try to identify near-future-up- trend of any stock and invest in it so that when the
price will go up he can make profit.
Fundamental Analysis: This sort of analysis is done based on the company
fundamentals- (EPS, Dividend, NAV etc.) In this case peoples try to identify the true
value of a stock rather the price trend. When someone identifies a stock is undervalued
s/he consider that market will recognize the value shortly and the price will go up. And
s/he invests in that particular stock in advance to reap profit from increased value when
the market will recognize the value.
Comparative Valuation: I wrote on it earlier. Just read that. If you cant find that post
just type the topic- "Comparative Valuation" in the search box and search it. You'll get it.
Intrinsic Value: This means that what is the true value of a stock. Fundamental analysts
try to identify this value.
Listed company or unlisted company: Companies or firms which are listed with
stock exchanges are called listed public limited company. On the other hand
firms/companies those are not listed with any of the stock exchange un-listed companies.
Central Depository Bangladesh Limited (CDBL):as incorporated as a public limited
company on 20th August 2000 to operate and maintain the Central Depository System
(CDS) of Electronic Book Entry, recording and maintaining securities accounts and
registering transfer of securities; changing the ownership without an physical movement
or endorsement of certificates and execution of transfer instruments, as well as various
other investor services including facilitation of the secondary market trading of Treasury
Bills and Government Bonds issued by the Bangladesh Bank.

What is a depository?
A depository is like a bank for shares instead of money. Instead of holding shares in the
form of certificates, investors have accounts in the depository and are able to move
securities and settle stock exchange transactions by an electronic update of their accounts.
Virtually all established markets have depositories including India, Japan, Malaysia,
Pakistan, Sri-Lanka and Thailand, UK and USA.
The core service of a depository is the efficient delivery, settlement and transfer of
securities through a computerized book entry system.

What is a depository needed?

The need for a depository arose from shortcomings in the present settlement system,
resulting in:

Lengthy delays in delivery settlement and transfer of securities;

Tedious procedures for verification of securities and transfer deeds;
Considerable time involved in dispatching cash dividends and bonus shares;
Risk of damaged, lost, forged and duplicate securities;
Serious problems associated with physical custody;
Tedious procedure involved in pledging of physical securities to raise capital.

Central Depository Bangladesh Limited (CDBL), a joint venture company setup by

banks, stock exchange, Asian Development Bank and other institutions operates the
Central Depository System (CDS) in Bangladesh.
CDBL, by converting physical certificates into electronic form, will eliminate the risks of
damaged, lost, forged and duplicate share certificates. The instantaneous delivery through
electronic book entry will result in immediate transfer of ownership, which presently can
take over a month. CDBL, in the long term, will also reduce the costs of the investing
public.

Securities & Exchange Commission

Introduction: The Securities and Exchange Commission (SEC) was established on 8th

June, 1993 under the Securities and Exchange Commission Act, 1993. The Chairman and
Members of the Commission are appointed by the government and have overall
responsibility to administer securities legislation. The Commission is a statutory body
and attached to the Ministry of Finance.
Functions the SEC:
o Serve as the members of the Commission and supervise its management.
o Provide policy direction to industry and staff and promulgate legally
binding rules.
o Act as an administrative tribunal for decisions on the capital market.
Mission of the SEC:
o Protect the interests of securities investors.
o Develop and maintain fair, transparent and efficient securities markets.
o Ensure proper issuance of securities and compliance with securities
laws.
Commissions main Functions
o Regulating the business of the Stock Exchanges or any other securities
market
o Registering and regulating the business of stock-brokers, sub-brokers,
share transfer agents, merchant bankers and managers of issues, trustee
of trust deeds, registrar of an issue, underwriters, portfolio managers,
investment advisers and other intermediaries in the securities market
o Registering, monitoring and regulating of collective investment scheme
including all forms of mutual funds
o Monitoring and regulating all authorized self regulatory organizations in
the securities market.
o Prohibiting fraudulent and unfair trade practices relating to securities
trading in any securities market.
o Promoting investors education and providing training for intermediaries
of the securities market.
o Prohibiting insider trading in securities
o Regulating the substantial acquisition of shares and take-over of
companies,
o Undertaking investigation and inspection, inquiries and audit of any
issuer or
dealer of securities, the Stock Exchanges and intermediaries and any self
regulatory organization in the securities market.
o Conducting research and publishing information

Dhaka Stock Exchange

Introduction: Dhaka Stock Exchange (Generally known as DSE) is the main stock

exchange of Bangladesh. It is located in Motijheel at the heart of the Dhaka city. It was
incorporated in 1954.
Dhaka stock exchange is the first stock exchange of the country. As of 31 December
2007, the Dhaka Stock Exchange had 350 listed companies with a combined market
capitalization of $26.1 billion.
History It first incorporated as East Pakistan Stock Exchange Association Ltd in 28 April
1954 and started formal trading in 1956. It was renamed as East Pakistan Stock Exchange
Ltd in 23 June 1962. Again renamed as Dhaka Stock Exchange Ltd in 13 May 1964
After the liberation war in 1971 the trading was discontinued for five years. In 1976
trading restarted in Bangladesh. In 16 September 1986 DSE All Share Price Index was
started.
The formula for calculating DSE all share price index was changed according to IFC in 1
November 1993. The automated trading was initiated in 10 August 1998. In 1 January
2001 DSE 20 Index was started. Central Depository System was initiated in 24 January
2004. As of November 16 2009, the benchmark index of the Dhaka Stock Exchange
(DSE) crossed 4000 points for the first time, setting another new high at 4148 points.
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:

- 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

10

1999)
- Announcement of Price sensitive or other information about listed
companies through
online.
Types of Markets in DSE:
i.
Public Market: In this market instruments are traded in normal volume
ii.
Spot Market: Instruments are traded in normal volumes under corporate
action if any
iii.
Odd lot Market: Odd lots of all Instruments are trade in this market
iv.
Block Market: Instruments are traded in bulk volume

The Clearing and Settlement: The Clearing and Settlement module provides the
management of trade from the point of entry into the Settlement Pool trade database until
it has been delivered, settled and removed from the Settlement Pool. It consists of three
major business processes.
Clearing: participant trade reporting, affirmation, billing and assigning settlement
instructions
Settlement: the process of overseeing that delivery of all instruments to the buyer and
payment of all moneys to the seller has occurred before removing the trade from the
settlement pool.

11

Regulation 4 of the Settlement of Stock Exchange Transactions Regulation 1998 has been
given effect time to time. A new directive was made by SEC dated on 18th March 2003
"Adjusted due position mechanism for settlement of scrip only as provided by regulation
4(1) of settlement of Stock Exchange Transaction Regulations, 1998 shall remain
suspended from 19th March 2003 until further order".
Here is a complete picture of the settlement system for all of our 427
Instruments in Five (5)groups in the Four (4) markets

Day T: Both Brokers & DSE Sign Contract

T+1

Selling Broker
Securities
T+3

Buying Broker
Cheque (in favour of DSE)

DSE Clearing House

Cheque
(in favour of DSE)

T+3
Securities

A Group: Number of Instruments are 338 (150 + 8D + 22M + 158TB), Here D for
Debentures, M for Mutual funds & TB for Treasury Bonds (Trading in Public, Block &
Odd-lot Market with trade for trade settlement facility for scrip only through DSE
Clearing House on T+1, T+3 basis). "A" and "DA" are marked in BASES columns for
Non-Demat & Demat instrument respectively in our TESA Trading Software.
The above cycle is valid for A, B, G & N category instruments traded in Public, Block &
Odd-lot market.
B Group: Number of Instruments are 44(Trading in Public, Block & Odd-lot Market with
trade for trade settlement facility through DSE Clearing House on T+1, T+3 basis). "B"
and "DB" are marked in BASES columns for Non-Demat & Demat instrument
respectively in our TESA Trading software.
G Group: Number of Instrument is 0 (Trading in Public, Block & Odd-lot Market with
trade for trade settlement facility through DSE Clearing House on T+1, T+3 basis). "G"
and "DG" are marked in BASES columns for Non-Demat & Demat instrument
respectively in our TESA Trading software.
N Group: Number of Instrument is 11(Trading in Public, Block & Odd-lot Market with
trade for trade settlement facility through DSE Clearing House on T+1, T+3 basis). "N"
and "DN" are marked in BASES columns for Non-Demat & Demat instrument
respectively in our TESA Trading software.

12

Z Group: Number of Instruments are 34(Trading in Public, Block & Odd-lot Market with
trade for trade settlement facility through DSE Clearing House on T+1, T+9 basis). "Z"
and "DZ" are marked in BASES columns for Non-Demat & Demat instrument
respectively in our TESA Trading software.
Day T: Both Brokers & DSE Sign Contract
Selling Broker

T+1

Securities
T+9

Buying Broker
Cheque (in favour of DSE)
T+9

DSE Clearing House

Cheque
(in favour of DSE)

Securities

This cycle is valid only for Z group instruments traded in Public, Block & Odd-lot
market.
Day T: Both Brokers & DSE Sign Contract
Selling Broker

T+0

Securities
T+1

Buying Broker
Cheque (in favour of DSE)
T+1

DSE Clearing House

Cheque
(in favour of DSE)

Securities

The above cycle is valid for A, B, G, N & Z category instruments traded in spot market.
Day T: Both Brokers & DSE Sign Contract
Selling Broker

T+5

Securities

Cheque (in favour of DSE)

T+6
Cheque
(in favour of DSE)

Buying Broker

T+6
13

Securities

DSE Clearing House

Remarks
* If any instrument declared as Compulsory Spot then Trades of Block and Oddlot market of that Instrument will be settled like Spot Market.
* Howla Charge, Laga Charge & Tax are always payable to DSE at Pay-In date
for both Buyer and Seller traded in Public, Block & Odd-lot Market.
* Howla Charge, Laga Charge & Tax are always payable to DSE at T+1 day for
both Buyer and Seller traded in Spot Market.
* Outside-Of-Netted settlement for "A" Group instrument has been withdrawn
from 10th Dec 2006.
* DVP Trades are Off-Market Settlement (Broker to Broker).
DSE Automated Trading System: Globally the developments in information &
communication technologies (ICT) have created a new instance in the securities market
operations. Stock Exchanges all over the world have realized the potentiality of ICT and
inclined to the electronic trading systems. It was understood by DSE that technology
would ensure transparency, timeliness and satisfaction in customer service. Considering
those DSE introduced Automated Trading System on 10th August 1998.In other words,
the trading floor moved right into the member's office premises where an investor started
to place buy/sell orders. Considering market growth the Automated Trading System was
upgraded two times. The recently Upgraded Trading System was started from 21st
December, 2008.
Hardware: DSE Automated Trading System (HP Nonstop S7806) is running on fault
tolerant, high available, scalable and maintainable Mainframe Server. Previously DSE
established the TANDEM Nonstop K204 System on September 1998 and on August 2005
it
was
replaced
with
highly
scaleable
HP
Nonstop
S7802.
DSE upgraded the Trading System again on 21st December, 2008. The existing HP
Nonstop S7806 Server is highly fault tolerant to the fact that no single component failure
will halt the system. Its constituent parts are hot swappable, and upward compatible;
components can be added or removed while the system is running and any compatible
new
upgraded
will
work
with
the
system.
Network (LAN / WAN): the entire Member (238 members) Server Applications (MSA)
are connected with Nonstop HP S-Series Server through either DSE LAN or WAN
connectivity. Each member has one or more Trader Work Station (TWS). The TWSs are
being connected to the Trading Server via respective MSA through LAN and WAN
connection. DSE outsourced MetroNet Ltd., DNS Ltd. , X-Net Ltd., Dhaka Com Ltd.,
Ranks ITT, Link-3, Royal Green Online Ltd. etc Network Service Providers (NSP under
WAN Expansion Project). Now days members can establish a main office or branch
offices to their remote location and can trade smoothly by using different media ADSL,
Optical fiber and Radio Link from Dhaka and other important cities such as Gazipur,
Narayanganj, Comilla, Hobiganj, Chittagong, Sylhet, Khulna, Barisal, Rajshahi, Bogra at
14

the same time. Three DSE branch offices located at Chittagong, Sylhet and Khulna are
connected viaBTTB's DDN link. We also used connectivity for redundancy for the DDN
link. We have a plan to reach the DSE branches in same way.
DSE LAN/WAN Expansion

DSE LAN/WAN Expansion

Within Dhaka City:

Outside of Dhaka City:

In case of trade interruption due to serious hardware, software, network failure or

telecommunication disruption at the Brokerage houses, there is a provision to allow
traders to trade at DSE Contingency Trading floor.
System Software: The system software is HP Proprietary Nonstop KERNEL and
includes the database as part of the operating system thereby eliminating the layer
typically found in most Database Management Systems (DBMS). The Database
functionalities are handled by NONSTOP SQL, which is simply a different operational
session for the operating system. The proprietary nature of the system software arguably
enhances system security. Operating system is HP's proprietary Nonstop Kernel
DBMS handled by Nonstop SQL. The system software treats all its hardware resources as
objects and is thus entirely message driven. This then allows application software to be
deployed using client / server architecture providing shared data processing between the
central server and the user workstation. The central trading system resides in the Stock
Exchange premises, which is running 24 hrs in a day & 365 days in a year.
Application Software
The application, which runs in DSE for trading, is called TESA (The Electronic Securities
Architecture). TESA has two parts: MSA (Member's Server Application) & TWS (Trader
workstation). MSA is the "Gateway" between the traders and the Stock Exchange, which
manages all the transactions and database operations between the traders and the Trading
Engine. TWS is the Front-end Application closer to investors, where they can submit
Buy/Sell
orders
for
their
desired
securities.

15

TESA (The Electronics Securities Architecture) is the Trading software (Based on HP

proprietary O/S & DBMS). It has developed in view of Distributed Database system in
the client site it is being using SQL as local Database Trading Software is MSA & TWS
In STSD (Signal trader Single Database) system both MSA & TWS are running on a
Windows 2k Professional /XP Professional workstation and for MTSD (Multiple trader
Single Database) MSA install in a Windows 2k Server & the TWSs are in different
Windows 2k Professional /XP Professional workstation-using members in house LAN
Tesa Architecture: TESA software is built for the global securities markets. It uses fault
tolerant computers, intelligent workstations and client / server design techniques. This
provides co-operative processing, high message integrity, continuous operation and fully
automatic recovery. This co-operative mechanism enables very high speed processing
which
is
essential
for
today's
electronic
markets.
TESA's Application Programmatic Interface (API) is the gateway to the TESA system
from the outside world. All external devices connect through the API. The API provides
the translation between external devices and internal processes. This means that a new
process does not need to be written to support each new device, only the API needs to be
modified.
Solution Benefits: The TESA application suite derives significant advantages from
being implemented on the HP Nonstop platform. The HP Nonstop customers have
benefited from these advantages.
Fault Tolerance: One of the most important automation requirements for any
stock exchange system is continuous system availability. With most systems Fault
Tolerance is created at the application level. Fault Tolerance is a fundamental
design feature of the HP Nonstop architecture.
Data Integrity: Data integrity is an integral feature of HP architecture. TESA
employs standard HP tools to achieve exceptional data integrity.
Scalability: The ability of an exchange to accommodate extraordinary increases
in transaction volumes without loss of its Capital investment in automation is very
important. The HP Nonstop Server is massively scalable due to Parallel
processors.

Principal Functions of TESA

Market Information: Supplying all market information needed to formulate the
buy and sell decisions
Order Management: Accept, validate and store orders and quotes from broker
workstations and / or systems.
Order Execution: Automatically executes orders when buy and sell prices
match.
Trade Reporting: Trade execution reports are provided to each trade
participant, to the settlement system and / or the depository and to the market.

16

Index Calculation: Calculates and publishes market indices (DSE General

Index & Weighted Average Index.)
Market Access: Provide exchange members with efficient affordable GUI-based
tools for accessing the market.
Trading Sessions: TESA conducts trading in-5-phases.
Enquiry: In this session Brokers can logon to the system. No order will be
submitted in this session. No trade will be executed. Only previous orders can be
withdrew
in
this
session
Opening: The Opening is a pure, single-price auction. All buy and all sell orders
are compared and calculate the open-adjust price. No trades will be executed in
this
session
Continuous Trading: During this phase, participants enter orders and
immediate execution or for inclusion in the book. Automatic matching and
execution takes place based on best price/ first in, first out trading rules
Closing: Closing prices are calculated and disseminated to market participants
Enquiry: Market will be closed in this session & other facilities like the previous
enquiry session.
Market Control: The Market Control Workstation allows the exchange administrative
staff
to
control
the
operation
of
the
market,
e.g.
Session Control: Opening and closing the market via interactive control or by
preset
timers.
Validation Parameters: Setting and viewing parameters that control the trading
engine validation e.g. tick size, Circuit Breaker, Circuit Filter, Market lot, Price
protection
Percentage.
Messaging: Allows the dissemination of company announcement data and
general market administrative massages.
Market Information: Market Information is a real-time market data system. It collects,
manages, generates and stores information relating to trade instruments and issuing
companies. Market Information is responsible for,
Collecting Real-Time Market Information: Bids, offers, last sale (i.e. most
recent trade price and volume), book and other data are gathered via the Trading
engine. It supports TESA's automated and manual trading modules and can
process the trades of external and off-market systems.
Collecting company Information: All information supplied by the listed
companies are maintained in the TESA database.
Generating Market Statistics: TESA generates market indices on a real time
basis. It generates other statistical information such as Price.
Brokers Support

17

Research and Enquiry: this module provides brokers access to the local Broker
Support and TESA databases for enquiries and research purposes.
Public Order Book
Broker Order Book
The multi-windows environment allows users to simultaneously view orders, market and
trades. Broker Support offers Stock Exchange members two configurations; standalone
and multi-user. Both configurations maintain a database consisting of information
generated by the TESA Server and the local system.
Management The management and operation of Dhaka Stock Exchange is entrusted on
a 25 members Board of Director. Among them 12 are elected from DSE members,
another 12 are selected from different trade bodies and relevant organizations. The CEO
is the 25th ex-officio member of the board (Annexure-Table-B). The following
organizations are currently holding positions in DSE Board:
Bangladesh Bank
ICB
President of Institute of Chartered Accountants of Bangladesh
President of Federation of Bangladesh Chambers of Commerce and
Industries
President of Metropolitan Chambers of Commerce and Industries
Professor of Finance Department of Dhaka University
President of DCCI (Dhaka Chamber of Commerce and Industry

18

Chittagong Stock Exchange

Introduction: The Chittagong Stock Exchange (CSE) began its journey in 10th October
of 1995 from Chittagong City through the cry-out trading system with the promise to
create a state-of-the art bourse in the country. Founder members of the proposed
Chittagong Stock Exchange approached the Bangladesh Government in January 1995 and
obtained the permission of the Securities and Exchange Commission on February 12,
1995 for establishing the country's second stock exchange. The Exchange comprised of
twelve Board members, presided by Mr. Amir Khosru Mahmud Chowdhury (MP) and
run by an independent secretariat from the very first day of its inception. CSE was
formally opened by then Hon'ble Prime Minister of Bangladesh on November 4, 1995.
Mission: The Chittagong Stock Exchange believes that a dynamic, automated,
transparent stock exchange is needed in Bangladesh. It works towards an effective,
efficient and transparent market of international standard to
serve and invest in Bangladesh in order to facilitate the
competent entrepreneurs to raise capital and accelerate
industrial growth for overall benefit of the economy and keep pace with the global
advancements.
Objectives:

Develop a strong platform for entrepreneurs raising capital;

Provide a fully automated trading system with most modern amenities to
ensure: quick, easy, accurate transactions and easily accessible to all;
Undertake any business relating to the Stock Exchange, such as a
clearing house, securities depository center or similar activities;
Develop a professional service culture through mandatory corporate
membership;
Provide an investment opportunity for small and large investors;
Attract non-resident Bangladeshis to invest in Bangladesh stock market;
Collect preserve and disseminate data and information on stock
exchange;
Develop a research cell for analyzing status of the market and economy.

19

Management: Chittagong Stock Exchange Ltd. (CSE) has a policymaking Body of 24

members, of whom 12 are elected and 12 are non elected. This Board
comprises of one President, three Vice Presidents and 19 Directors. There is an
independent secretariat headed by a Chief Executive Officer (CEO)
(Annexure-Table-C).

Regulatory Structure Overview

Organizational Structure

20

Problems of Capital Market: Problems in capital market, specially in stock exchanges

occur due to different arsons and its scenario is like as follows:
Access to high quality and credible corporate information remains a major
problem in the market. While a handful of institutional investors may enjoy
certain benefits since they have an investment unit manned with qualified
officers, nothing exists for retail investors.
in the absence of independent research houses, retail investors primarily focus
on advice given by their brokers, which often consists of market rumors. This is
not acceptable, and it often leads to enormous losses for small investors who are
vital for a low-income and emerging market like Bangladesh.

21

Filtering of information among different types of investors may leave scope for
manipulation; this assumption had been proved right in the 1996 market meltdown
at the cost of many individuals and households. The market does not have an
adequate number of fundamentally sound scraps.
The authorities should not force major corporations to come into the market,
without creating an enabling environment. The focus should be on the
privatization of state owned enterprises through public offerings in the bourses.
The market has to reach such a stage of development that companies will take it
as a serious alternative to bank financing.
The government has reduced the interest rates on savings instruments, however
this particular market is still limited to the commercial banks, and individual
investors do not have access to these instruments. These savings instruments are
considered risk-free, and since they are not present in the capital market, the
overall risk of investment for an investor remains very high.
A portfolio investor does not have the option of reducing his average portfolio
risk by adding these risk-free opportunities. An estimate suggests that the ratio
of institutional-to-retail investors is still low in Bangladesh, even relative to
other emerging markets. Institutional investors bring long-term commitment and
a greater focus on fundamentals and, hence, stability in the market.
The presence of institutional investors is also expected to ensure better valuation
levels due to their specialized analytical skills. While we do have public sector
as well as private sector institutional investors in the economy, proprietary
investment from these institutions is not significant -- other than the
Investment Corporation of Bangladesh that was created in 1976 and currently
manages several mutual funds. Corporate governance of international standard
is still lacking. Multinational corporations and institutions operating in
Bangladesh often adhere to a very high international standard compliance
regime.
Parent companies of most of these corporations and institutions have theirs rips
listed in developed markets. Unless the local market adheres to, and effectively
enforces, standard corporate governance system, there will not be a levelplaying ground for international business houses vis--vis local operators.
An important aspect for capital market is reflection of fair value of scraps. This
is not adequately present in the current scenario, and due to this reason the
market is not receiving the attention of an important segment of investors, both
foreign and local. Investors are perhaps depending more on speculative analysis,
resulting in volatility in the market, as opposed to fundamental analysis, which
22

could attract more stable long-term investors who are sure about their
investment tenure and expectations.
1996 and now
The bull-run that took place in 1996 has left a number of positives for the
market. A lot of investment-friendly regulatory reforms have been implemented
by the SEC. We now have stronger surveillance and improved rules relating to
public issue, rights issue, acquisition, mergers and so on.

All these fundamental developments, which were well overdue, followed

the1996 bull-run. It was a learning experience for Bangladesh, and the desired
level of changes was initiated by the market watchdog subsequently. In the
secondary market, surveillance is more active and particular than before.

These developments, that are widely appreciated, are actually the fundamental
requirements that are in place today resulting from the continuous efforts of the
government and multilateral agencies. Trading has now become automated, led
by the Chittagong Stock Exchange through the central depository.
In the present automated trading environment, bids/offers, depth, and required
broker particulars are all recorded and can be retrieved for future reference. The
Central Depository Bangladesh Limited (CDBL) was created in August 2000 to
operate and maintain the Central Depository System (CDS) of Electronic Book
Entry, recording and maintaining securities accounts and registering transfers of
securities; changing the ownership without any physical movement or
endorsement of certificates and execution of transfer instruments, as well as
various other investor services including providing a platform for the secondary

23

market trading of Treasury Bills and Government Bonds issued by the

Bangladesh Bank.
The stock market surveillance mechanics in place at present has no resemblance
to that of 1996.There are strict rules and guidelines, trading circuit breakers and
international standard surveillance to protect investor rights and ensure fair play.
The disclosure requirements and its timing for both listed scraps and IPOs as
devised by the SEC are now more reflective of international practices.
The SEC is also adopting new valuation methods that result in fairpricing of
new issues. While there is still a lack of credible research organizations, a few
firms like Asset and Investment Management Services of Bangladesh Ltd.
(Aims) have come up, and they are investing in research and building up stock
market related credentials
The recent surge in the stock market
The Dhaka Stock Exchange Index was at a 10-year high in the 2007 year end(up
66 percent),which made it Asia's top performer after China. The steady
investment atmosphere prevailing throughout 2007 is considered to be one of
the main reasons behind this surge. Good return prospects, stable market
growth, and uninterrupted trading as a result of political stability attracted
foreign investors to local securities. In 2007, foreign investors bought shares
worth$205.7 million, while the amount of selling was $78.6 million, according
to a DSE statistic. According to the DSE, in 2007, net foreign or portfolio
investment on the Dhaka Stock Exchange surged 8.3x to $129 million. The
banking sector, followed by the power, pharmaceutical and cement sectors,
received the
most foreign
investment.

24

 The caretaker government has also attracted investors by pledging to sell state
enterprises. The state-owned companies -- Jamuna Oil Company Ltd. and
Meghna Petroleum Ltd. -- debuted in the bourses early this month. Some
analysts think that the market had been undervalued before the surge, and the
uphill trend, therefore, played the role of an upward correction of the market.
The P/E ratio now stands at 20x as compared to 14.1x for emerging markets. It
seems sustainable if the planned big IPOs of a few SOEs and the top telecom
companies take place. More suchlarge issues are required, which can emerge
out of the energy, infrastructure and public sectors.

Fig: present situation of index of share market

Trading on the Dhaka Stock Exchange index was halted after it fell by 660
points, or 9.25%, in less than an hour on 10th January, 2011
It was the biggest one-day fall in its 55-year history.It is estimated that over
three million people - many of them small-scale individual investors - have lost
money because of the plunging share prices.
The benchmark index had climbed by 80% in 2010 but has lost more than 27%
since early December. Investors and police also clashed last month. Mondays
protest followed losses of about 6.7% in Sunday trading.

25

 Trading was also halted on the country's other main index, the Chittagong Stock
Exchange.
Along with these problems we are also facing problems which are given below:
1. Loan from Foreign Agencies: Most of the times Govt. take loans from foreign
agencies which reduce the turnover of our currency as a result our money become
barren because it requires interest also.
2. Lack of proper Management: Our capital market is not well managed also.
Sometimes it requires the directions from the economists or specialists.
3. Corruption: Corruption is the main problem of capital markets it it occurs in many
ways by politicians, business individuals, govt employee etc.
4. Weakness of SEC: SEC is responsible for controlling the capital market. But in
recent times we watch that the market is highly manipulated and SEC remains
stable. Why not use the services of the banks and dispense with the services of the
couriers altogether? Will the SEC not considers a quota for Senior Citizens in future
IPOs say 5% of the shares for those 65 and above?
5. Defective Rules & Regulations: The rules and regulations of capital market are
defective and are changing time to time. For this investors are becoming nervous to
invest certainly in any securities.
6. 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.

7. Wrong Representation of Financial Statements: Many companies do not

focus real position of the company as some audit firms involve in corruption while
preparing financial statements. As a result the shareholders as well as investors do
not have any idea about position of that company.
8. Negligence of Concern Parties: Govt. as well as the concern people does not
think hardly for the capital market. Thus it can not achieve the strength in last 12
years.
9. Political Instability: It is one of the vital reason because due to the political
unrest investors relates to one party can manipulate to harm other in this way they
harm investors.

26

10. Delays in Settlement: Financing procedures and delivery of securities sometimes

take an unusual long time for which the money is blocked from nothing.

11. 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. No benchmark rate or yield curve: The government was not in the practice of
issuing any long-term transferable instruments and the interest rates on the popular
government saving instruments were administered. As such, no benchmarking of
risk-free rates or the risk-free premium was possible. The proxy bank rate or the
fixed deposit rates of commercial banks were not a reflective and reliable
substitute. Therefore, a mid or long-term yield curve could not be developed.
Lately, during the past two-three years the T-bills have been gradually made marked
based where the demand is overwhelmingly from commercial banks to comply with
the Statutory Liquidity Requirement (SLR).
13. High government borrowing at high interest rates: The government has
traditionally been the major borrower through the various national savings
schemes and that too at the highest interest rate bracket and in unlimited (not
predetermined) amounts. The government instruments were crowding out corporate
borrowers and bank deposits in comparable tenures. Thankfully, the scenario is
shifting lately as the government has discontinued some high interest paying
instruments and restricted investments on others, accompanied with rate cuts. This
has been attributed to the recent surge in stock prices.

14. Lack of transparency in public sector borrowing: Public sector borrowing

has been riddled with lack of transparency that failed to eventually proffer any
reliable demand-supply scenario in which an efficient debt market can function.
Because of the frequent shifts and ad hoc culture and volatility of demand, many of
the debt instruments could not be designed to be publicly traded that could fuel a
vibrant market. Efforts are now on to issue tradable instruments and bring fiscal
discipline.
15. Entrenched buy & hold culture: Since the first love of fixed income investors
were the non-transferable high yield government saving certificates, an entrenched
buy & hold culture developed over the years. Even premature encashment over the
counter at the issuing offices were not a common practice. This culture spilled over
to the nascent listed corporate debenture market, testified by the historically low
27

trading volume at the exchanges, which retarded the natural growth of a secondary
debt market.
16. Low long-term borrowing requirement: Owing to a bitter colonial past and
lack of resources, historically there was a weaker base for industrialization and
related formalized commercial activities. This has kept the demand for long-term
capital and credit requirement at the formal market at a lower level.
17. High bank deposit rates: As deposit interest rates of the commercial banks were
also quite high until recently in competition with government securities, corporate
issues had to offer unsustainable higher rates (14%-18.5% pa with semi-annual
rest). High bank interest rates deterred public borrowing by the corporate bodies,
thwarting the expected development of a debt market.
18. Banks feeding project finance appetite: Though retail banks necessarily should
not be in a position to provide adequate long-term project finance owing to a
deposit and credit tenure mismatch, traditionally the commercial banks were (and
still) providing such funds largely through annual rollovers, distorting the long-term
credit market. Borrowers prefer less disclosure requirement and prudential
obligations in bank borrowing to a public issue.
19. High tax incidence & issue cost: Until a couple of years back debenture trust
had to pay one-off 2.5% registration fees (now a fixed token amount of Tk2,500)
and 2% stamp duty on the total amount raised. With firm commitment underwriting
requirement necessitating 2.5% fees, the public issue cost averaged about 8%,
topping with a recurring annual 1% trustee fee and related listing fees. In a
prevailing high interest regime, a high establishment and issue cost base rendered
most public issue of corporate debentures unviable.
20. Lack of regulations and infrastructure: Absence of a dedicated set of
regulations and necessary infrastructure that could help a debt market of
consequence remained an impediment. However, despite absence of an umbrella
law, there could have been notable market activities had there been strong policy
support. The historical inheritance of the English Common Law, including the
Companies Act 1913, Contract Act 1862, Trust Act 1882 etc. along with the various
securities regulations including the SEC Public Issue Rules, all provided a
framework which could have a facilitating role had their been application of
imagination. The SEC has now framed a guideline for issuance of debt securities.
21. Lack of expertise & innovation: General lack of expertise and innovation and
absence of institutions in bringing variations in debt products have kept the market
uninteresting. Lawyers, financial advisors and other service providers have not been
competent in identifying the rights and obligations of the parties involved in debt

28

securities. Expertise and institutional base for issuing various forms of debt is yet to
visibly evolve. There is also absence of pertinent financial research institutions. The
Bangladesh Bank have now issued Primary Dealer licenses to selected banks and
NBFIs and the SEC have also initiated the process of appointing eligible stock
brokers for trading of government securities at the bourses.

22. Overlapping parasitical: Since Bangladesh Bank and the SEC enjoy some
overlapping regulatory powers on the money and bond markets; there remain
potentials of confusion among the issuers and market intermediaries. To qualify for
tax incentives, zero coupon issue or SVP for asset securitization, require noobjection from the Central Bank, even if the issuer is not a bank or financial
institution and it is a long-term instrument (over 1 year). The governance of the debt
securities regime was weak and a disincentive along with the absence of arbitration
institutions.
23. Default culture erode confidence: An overwhelming number of publicly traded
debentures issued by reputed corporate houses through IPOs failed to service the
interest coupon and principal payment obligations in time. There are instances
where the SEC had to intervene after a long and tangled process but there was no
visible legal redress for the debenture-holders. Because of these irregularities, there
persists a general lack of confidence among investors in listed debentures. With the
erosion of public confidence there has been no issue of new listed debentures since
1999.
24. Absence of institutional investors: In Bangladesh the institutional investor
community like investment & merchant banks, mutual funds, pension & provident
funds, life insurers etc. has unfortunately not developed due to multifarious
impediments. The market is essentially retail based and prone to high risk. The
newly licensed merchant banks are yet to make any tangible mark, the government
pension funds are essentially non-funded and non-accounted-for liabilities,
provident and insurance funds restrained under age old qualitative and quantitative
restrictions and growth of private mutual fund retarded under stringent regulatory
frame-work and an uneven playing field. None of these ground realities has been
conducive to growth of a healthy and vibrant capital market.
25. Imbalanced Demand and Supply of Stock: There are certain leakage of stock
in the market thats why the existing stock is over valued.

29

26. Lack of centralization: The concept of centralization of the securities market

has not been implemented
that
arise technical problems and political
infighting.
27.

Not considering the current market prices: The intrinsic values for
securities traded are sometimes estimated without considering the current
market prices of the securities.

28. Lack of skilled manpower: Lack of skilled manpower as well as financial and
non-financial institutions involved in

the securities market.

29. The lack of proper policy framework: The lack of proper policy framework
that provides incentives and protection to investors
30. Lack of skilled investors: Lack of skilled investors is another problem to our
capital market
31. Lack of awareness: Lack of awareness is another problem in our capital market
32. Book building: is a way of asserting the price of a share. A small number of select
investors bid for a portion of a company's shares and buy. That price then becomes
the face value of the share. The companies which have come to the market or are
waiting to be listed have indicative prices (the price that they got from book
building process) which reflect price earning ratios well above 40. This means they
are all overpriced in SEC's eyes. Why then the watchdog let it happen? This must be
investigated and SEC must answer to this.
33. Lack of skilled manpower:DSE as well as financial and non financial
institutions involved in the securities market.
34. The Share Market Bubble: Jyoti Rahman a famous columnist warns that there
might be trouble afoot in our capital markets After bringing uncomfortable
memories of 1996 to many minds over the last few months, the bull run in Dhaka
Stock Exchange (DSE) seems to be in abeyance, at least for now. At the time of
writing, DSE had fallen by about 1 per cent since the end of February. While there
have been reports of angry reactions of retail investors expecting sharp price rises, a
modest price correction is a preferable outcome than continuing froth in the market
eventually ending in a more severe bust. Of course, such a bust is still very much
possible. We are by no means out of the woods yet. But with luck, we will have
avoided a collapse. Either way, focus should now turn to factors that fuel these
episodes, and what, if any, can policy do to avoid them.

30

Prospects of Capital Market

1. Severely squeezed money supply: Govt. have to take initiatives to maintain the
flow of money supply in market where people invest their capital.
2. Hiked bank deposit requirements: All concern parties have to make policy to
hike bank deposit requirement. And from time to time they have to update it.
3. Reduced Bank investment ceiling into capital market: The bank investment
ceiling also needs to be reduced. Because of their investment the liquidity problem
is increasing.

4. Improve the Activities of DSE:

To force the listed companies to publish their annual reports with actual and
proper information that can ensure the interests of investors
To introduce automated monitoring system that may control price
manipulation, malpractices and inside trading.
To introduce full computerized system for settlement of transactions
To force the listed companies to declare and pay regular dividends through
conducting Annual General Meeting.
To take remedial action against the issues of fake certificatesBanks,
insurance companies and other financial institutions should be encouraged
deal in share business directly.
To punish the member brokers for breaching of contract.
5. Capital Market Development Program in Bangladesh:
Strengthening market regulation and supervision
Developing the capital market infrastructure
Modernizing capital market support facilities
Increasing the limited supply of securities in the market
Developing institutional sources of demand for securities in the market and
6. Improving policy coordination: Time to time changing policies are pushing the
investors towards danger. So policies related to stock markets need to coordinate
with the condition of all parties.
7. Introducing Corporate Governance: A 2008 Asian Development Bank (ADB)
Improvement of Capital Market and Insurance Governance Project program
administration memorandum notes that despite recent improvements, Bangladeshs
capital market is still underdeveloped and weaknesses in corporate governance
31

persist. The Bank also points to "inadequate market supervision" as one of the key
problems. A 2009 paper by Javed Siddiqui published in the Journal of Business
Ethics further explains that the corporate sector in Bangladesh is characterized by
high ownership concentration, lack of shareholder involvement and reluctance on
the part of the investor to raise capital through the stock market. Efforts to improve
corporate governance, however, are being made at various levels. Since 1999, the
ADB has been involved in a project (which is scheduled to be completed in 2009)
to strengthen the capacity of the Securities and Exchange Commission (SEC), the
Bangladeshi capital market regulator. In 2003, the Bangladesh Enterprise Institute
(BEI), a donor-funded private sector think-tank developed a code of corporate
governance. Furthermore, the SEC issued an order on corporate governance to be
implemented on a comply-or-explain basis by listed companies in 2006. Among
other initiatives, the BEI, in partnership with the United States Agency for
International Development is currently involved in a project on Promoting
Governance, Accountability, Transparency, & Integrity to be completed in 2012
and has also been conducting several training programs on corporate
governance.Corporate boards are owner-dominated and therefore, most of the
companies have executive directors, CEO and chairman from the controlling
family. There are two stock exchanges in Bangladesh, the DSE and the CSE. At the
end of 2004, the total market capitalization of the DSE was $3.8 billion,
representing 6.7% of GDP (compared with $1.7 billion at the end of 2003). The
total market capitalization of the CSE was $3.6 billion. By June 2005, there were
277 listed securities on the DSE and 198 on the CSE.
8. Ensuring the Basis for an Effective Corporate Governance Framework:
According to a 2007 OECD overview of corporate governance frameworks in Asian
countries, Bangladeshi legal framework is governed by the Companies Act. The
BEI Corporate Governance guidelines and the 1987 SEC order supplement the
existing framework. The Siddiqui paper notes that the Companies Act 1994 (revised
after 81 years from Companies Act 1913, when Bangladesh was part of BritishIndia) defines the structure of the firms, including the composition of the board of
directors, appointment of the CEO, appointment and remuneration of the auditors
etc. Additionally, the financial sector is regulated by the Banking Companies Act,
and the Insurance Act. The author notes that poor implementation is one of the main
problems with the Bangladeshi legal environment.As pointed out earlier, the capital
market in Bangladesh is regulated by the SEC. Established in 1993, the SECs
objective is to protect the investors, promote and develop capital markets, and
regulate the securities market. In 1999, the ADB initiated a US $ 1.07 million
project to strengthen the regulatory capacity of SEC. Other regulatory agencies
include the RSJC, the Bangladesh Bank, the DSE, the CSE, and the ICAB. The BEI
report points out many weaknesses in the SEC and RSJC as regulators, including
insufficient staff and expertise.
9. The Rights of Shareholders and Key Ownership Function: Rights of
shareholders are included in the Companies Act 1994. The Act grants shareholders
certain rights such as attending meetings, appointing and removing directors,
obtaining financial information, and approving the annual balance sheet.
32

Shareholders are also given mechanisms to enforce their rights. In addition, as a

protection for shareholders, the directors and management of a company are subject
to such penalties as fines and imprisonment for not filing periodic returns with the
RJSC. Also, shareholders decide on dividends but they may not exceed the amount
recommended by the board. Per the 2003 BEI report, shareholders are not involved
in the daily management of the company. There are a number of factors that weaken
shareholders rights including insufficient board disclosure, board size and makeup,
and a lack of independent directors. Corporate governance in SOEs is poor because
there is little oversight by the government, and the majority shareholders rarely play
a role in the financial and managerial oversight of an SOE.
10. The Equitable Treatment of Shareholders: According to the 2003 BEI report,
the Companies Act of 1994 provides adequate protection for minority shareholders,
especially Section 233. However, most shareholders do not know about Section 233
and other minority shareholders rights. The assessment recommends increased
minority shareholder participation. There are a number of provisions for the
protection of minority shareholders. Minority shareholders with at least 10 percent
of shares may take court action against the company. However, exercising minority
shareholder rights may be costly, and proving a director is at fault is difficult. The
SEC protects minority shareholders, sometimes overzealously, at the expense of the
majority shareholders in listed companies. The Code of Corporate Governance
expands upon the existing legislation and suggests that minority shareholders be
able to elect a director. However, there is insufficient information publicly available
addressing Bangladeshs compliance with this principle
11. The Role of Stakeholders in Corporate Governance: The 2003 BEI report notes that
creditors are the primary stakeholders in Bangladesh because commercial financing
is principally obtained through borrowing from banks and financial institutions, as
opposed to equity or the capital market. The assessment recommends that
stakeholders' awareness of corporate governance issues be fostered in order to
strengthen their role. The report also identified the common concern of the
stakeholder groups regarding the truth and fairness of audited financial statements.
However, there is insufficient information publicly available addressing
Bangladeshs compliance with this principle.
12. Disclosure and Transparency: In Bangladesh, company disclosure to shareholders
and the public is the only mechanism that shareholders and investors have to
evaluate a company's performance and oversee the activities of the board. The 2003
BEI report points out the importance of strict enforcement of regulations pertaining
to disclosure. However, disclosure is often inaccurate and incomplete. The law
requires that books recording the company finances be kept at the registered office
and be available for inspection by government officials. Sanctions for
noncompliance include fines and imprisonment. The report judges company
disclosure based on the requirements of the Bangladesh Accounting Standards
(BASs) as "inadequate" and "not consistent" , with practically no consequences. It
adds that weak auditing and regulation perpetuate the situation. Other relevant
33

information frequently goes unreported. The SEC prescribes that the audit
committees should meet at least three times per year. However, the 2009 Siddiqui
paper notes that Bangladeshi companies are reluctant to hold annual general
meetings (AGMs) even though this is a statutory requirement.
13. The Responsibilities of the Board: The 2003 BEI report noted that most directors do
not know their duties or responsibility to shareholders interests, and they
consequently do not fulfill their duties. There is also no forum in which directors
may carry out their functions, as board meetings and AGMs do not serve as such.
Companies have low expectations for their boards. Qualified and independent
directors are rare. There are no training prerequisites for directors. Also, there are
poor requirements for the disclosure of information about the board to the
shareholders. According to the International Monetary Fund's 2005 Selected Issues
paper on Bangladesh, there have been improvements in corporate governance of
banks. CEO's are subject to the fit and proper test, and a similar test is applied for
bank directors. There is a requirement that independent directors represent the
interests of minority shareholders. Also, the number of directors and the time they
serve on the board has been limited, as well as restrictions placed on multiple
members of one family serving on the same board. The Code of Corporate
Governance includes mandates pertaining to the board and directors. Also, the BEI
website indicates that in February 2006 the SEC introduced guidelines for corporate
governance which are enforced on a 'comply or explain' basis. In addition, a South
Asian Federation of Accountants report indicates that there are requirements for the
chairman to be an independent director and a separation of the roles of chairman
and CEO. There are guidelines for director remuneration. The board is responsible
for company oversight, determining risk management and internal control systems
and monitoring and approving financial reports. There are also requirements for
board meetings.
14. Good governance for better capital market: Investor confidence has not fully
recovered since the stock market crash in 1996. This lack of confidence is traceable
in large part to weak governance practices. Lack of market interest has in turn
marginalized the role of the capital market in mobilizing long-term funds for
economic development. The Improvement of Capital Market and Insurance
Governance Project (the Project) will improve good governance practices in the
capital market and the insurance sector. The TA loan has two parts. Bangladeshs
capital market is still underdeveloped, despite recent improvements. There are two
stock exchanges in Bangladesh, the Dhaka Stock Exchange (DSE) and the
Chittagong Stock Exchange (CSE).4 At the end of 2004, the total market
capitalization of the DSE was $3.8 billion, representing 6.7% of GDP (compared
with $1.7 billion at the end of 2003). The total market capitalization of the CSE was
$3.6 billion.
(i)Strengthening regulatory and supervisory capacity;
(ii) Improving governance and operations of market
Intermediaries;
34

(iii) Strengthening corporate governance and public disclosures;

(iv) Strengthening accreditation
System; and
(v) strengthening debt recovery.
The insurance sector, an important provider of long-term capital, is growing very rapidly
in Bangladesh. As economic growth accelerates, there is greater need for insurance
protection
and new insurance products. During 2001-2003, premiums have grown by 22% annually
for life insurance and by 11% for general insurance. However, the insurance premium per
capita
remained at 2.1% in 2003, slightly lower than in Pakistan (2.9%) and far below India
(16.4%).
There are 62 insurance companies in Bangladesh. They include two state-owned
insurance corporations: Jiban Bima Corporation (JBC) for life insurance and Sadharan
Bima Corporation (SBC) for general insurance. JBC and SBC account for around 15% of
premium income in their
respective subsectors. SBC benefits substantially from reinsurance premium income since
it is compulsory for general insurance companies to reinsure with SBC up to 50% of their
total reinsured assets.
15. Strengthening the Market Surveillance Systems: To strengthen the SECs
operations and governance, (i) a real-time market surveillance system will be installed,
and (ii) capacity building will be provided to improve monitoring,
supervision, and enforcement capacity of the SEC.
The SEC surveillance system will complement the stock exchanges own
market surveillance activities and ensure that the exchanges are performing their
regulatory functions
well. The stock exchanges will establish a regulatory review committee to support the
implementation of surveillance systems and to prevent vested interests of the exchanges
members from encroaching on the exchanges regulatory functions. The committee will
be composed of representatives from the legal and accounting professions, who will be
independent of members of the exchanges, and an SEC representative who will
participate as an observer. The committee will be responsible for establishing policy and
direction in applying
the regulations of the exchanges; reviewing existing regulations, regulatory practices, and
Staff of SEC, CSE, and DSE will be trained in modern market surveillance
and enforcement techniques to enable them to be more effective at detecting trading
irregularities
and market abuses. The training will include examination of evidence and analysis of
trading accounts of brokerage firms. In addition, staff will be trained not to contaminate
evidence

35

obtained from the surveillance system that could later be used in prosecuting a matter in
the courts.

Further Strengthening the Capacity of SEC:

The Project will continue assistance provided to the SEC to progressively

upgrade its capacity so it can meet more fully its current and future regulatory and market
development
functions, promote market stability and develop the capital market. The Project will
support
(i)
capacity building programs, staff development and retention schemes, and a
succession plan for employees leaving the SEC
(ii)

the establishment of an in-house training unit within the SEC

(iii)

overseas secondments for a small number of key staff, and

(iv)

a brief review of the overall risk management situation in the market.

Capacity Building. The capacity building programs will help develop the skills
required by the SEC to meet gaps in its present operations and for future
regulatory needs. The training needs to be met by the Project include, among
others, effective risk management, enforcement, and market surveillance, which
play an important part in the overall regulation of the capital market. The training
for the SEC enforcement staff will concentrate on hands-on training and include
exposure to actual cases.

.
General courses will be given to all staff of SEC, while specific courses will be
designed and undertaken for SEC management and its Board covering regulatory issues,
market operations, and organizational management.

36

The policy and procedures on selection of staff for local and international training,
including a policy for retaining trainees, will be transparent. Policies and procedures will
be introduced to recruit employees. An organizational and succession plan will be
developed and implemented. There will be a facilitation plan of selected current senior
staff to obtain professional qualifications appropriate to their posts.

Establishment of In-House Training Unit:

.
help to establish a training unit within the SEC, to ensure that training is sustained.
The unit will have a high profile in the SEC and be responsible for both initial and
subsequent training of its staff. Trainers with expertise in the highly specialized
regulatory functions of the SEC are rare in Bangladesh, so consideration will be given to
using qualified retired officers from the SEC with the expertise and training skills to
conduct in-house training programmes.

Risk Management. The Project will support a concise overall risk management
review so that the SEC can identify potential weaknesses in the market structure.
This will strengthen the SECs preparedness for its supervisory functions
.

Enhancing the Capacity of Management and Governance of the Stock

Exchanges 15 IOSCO, as the principal international securities regulatory
standards-setting organization, advocates the importance of the integrity of capital
markets as essential to a countrys financial stability and economic prosperity. It
provides guidelines to enable regulators to identify and address possible
weaknesses to a financial system.

Management must be provided with the knowledge to operate the exchanges

effectively and efficiently by international standards. The Project will provide training,
coaching, and organizational development advice to management. Some of the local
training may be combined with SEC staff training. The component will cover a needs
assessment of designated staff at each exchange and the provision of courses based on
those outlined in component 1 for the SEC. The Project will help to arrange (but not
fund) secondment of selected exchange staff to overseas exchanges.

37

To improve management efficiency and help to raise the operations and

governance of the exchanges to international standards, the boards and committees of
exchanges will be streamlined. The Project will help to review current governance
regulations, such as the memorandum and articles of associations of the exchanges, and
preparing draft papers to present to the SEC for approval. The Project will consider ways
to facilitate transactions in the exchanges, through the use of various accepted trading
mechanisms such as margin lending, borrowing and lending of securities, and the
introduction of new products suitable for Bangladesh.

Annexure

Sl.o.

Table: A
SECURITIES AND EXCHANGE COMMISSION
Authority
Name

Designation

Commission
01.

Mr. Md. Ziaul Haque Khondker

02.
03.

Mr. Muhammad Yasin Ali

Member-I
Professor Md. Helal Uddin Nizami
Member-II
Officers of the Commission
Mr. Abdul Hannan Zoarder
ED (Presently under lien for 2 years)
Mr. Anwarul Kabir Bhuiyan
ED
Mr. Farhad Ahmed
ED (AdminFinance/Enf./Law)
Mrs. Ruksana Chowdhury
ED (CMRRC)

1.
2.
3.
4.

Chairman

38

5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28
29
30
31.
32.
33.
34.
35
36
37
38
39
40
41
42
43
44
45

Mr. A.T.M. Tariquzzaman

Mr. Anowarul Islam
Mr. Saifur Rahman
Mr. Ashraful Islam
Mr. M. Hasan Mahmud
Mr. Mahbubul Alam
Mr. Mahbuber Rahman Chow.
Mr. Kamrul Anam Khan
Mr. Mohammad Rezaul Karim
Mr. Shafiul Azam
Mr. Ripan Kumar Debnath
Mr. Mir Mosharraf Hossain
Mr. Mohammad Jahangir Alam
Mr. Mahmoodul Hoque
Mr. Prodip Kumar Basak
Mr. Rajib Ahmed
Mr. Abul Kalam
Mr. Mansur Rahman
Mr. Mohammad Abul Hasan
Mr.Sheikh Mahbub Ur Rahman
Mrs. Farhana Faruqui
Mr. Abu Rayhan Mohammad Mutasim Billah
Mr. Md. Fakhrul Islam Mazumder
Mr. A.S.M. Mahmudul Hasan
Mr. Muhammad Ziaur Rahman
Ms. Mustari Jahan
Mr. M.A Maleque
Ms. Anu Dey
Mr. Md. Iqbal Hossain
Mr. Rakibur Rahman
Md. Saiful Islam
Mr. Md. Ohidul Islam
Mr. Mohammad Zahirul Haque
Mr. Md. Yusuf Bhuiyan
Syed Golam Mowla
Ms Tania Sharmin
Ms Sultana Parvin
Mr. Hafiz Md. Harunur Rasid
Ms Mahmuda Shireen, Assistant Director
Mr. Md. Hossain Khan
Ms. Parvin Akter

ED (CI/CDS)
ED (MF & SPV, Reg.)
ED (Surv)
Executive Director (MIS)
Executive Director (CF)
Director (SRI,R&D, SRMIC)
Director (Law)
Director (CI)
Director (CMRRC.)
Director (SRMIC)
Director (CMRRC)
Director (Enforcement)
Director (SRI)
Director (Surv.)
Director (Corporate Finance)
Director (MIS/Surv)
Director (Corporate Finance-II/Finance)
Director (CI)
Director (Enforcement)
Director (Reg.)
DD (Chairmans Office/IRD)
DD (SRMIC)
DD (Corporate Finance)
DD(Law)
DD(Law)
DD(Enforcement)
Accounts Officer
AD (MF&SPV)
AD (CI)
AD (Surveillance)
Assistant Director (Reg.)
Assistant Director (SRI)
Assistant Director (CI)
Assistant Director (Reg.)
Assistant Director (R&D)
Assistant Director (Surveillance)
Assistant Director(MF&SPV)
Assistant Director (Admin &Finance)
Assistant Director(SRMIC)
Assistant Director(Enf.)
Assistant Director(Surveillance)

Table-B
Dhaka Stock Exchange Ltd.
Authority

39

Mr. Md. Shakil Rizvi

President, DSE
Mr. Ahasanul Islam
Senior Vice-President, DSE
Mr. Md. Shahjahan
Vice-President, DSE
Mr. Md. Rakibur Rahman
Director, DSE
Mr. Ahmed Iqbal Hasan
Director, DSE
Mr. Md. Feroz Khan
Director, DSE
Mr. Ahmad Rashid
Director, DSE
Mr. Khwaja Ghulam Rasul
Director, DSE
Mr. Sharif Ataur Rahman
Director, DSE
Mr. Md. Rafiqul Islam
Director, DSE
Mr. Azizur Rahman
Director, DSE
Mr. Md. Mizanur Rahman Khan
Director, DSE

Table: C
Chittagong Stock Exchange Ltd.
Authority
1. Fakhor Uddin Ali Ahmed
President
2. Al Maruf Khan,FCA
Vice-President
3. A.Q.I. Chowdhury,OBE
Vice-President
4.. Tareq Kamal
Vice-President
4. Abu Sayed Md. Shahidullah
Director
5. ASM Nayeem,FCA, FCCA
Director
40

6. Bijan Chakroborty
Director
7. Mirza Salman Ispahani
Director
8. M.K.M. Mohiuddin
Director
9 . Md. Mofizuddin
Director
10. Mohammed Mohiuddin, FCMA
Director
11. Nasiruddin Ahamed Chowdhury
Director
12. . Abu Ahmed
Director
13. Abul K. A. Mubin
Director
15. Aftabul Islam, LLB, FCA
Director
16. Amir Humayun Mahmud Chowdhury
Director
Mr. Anis A. Khan
Director
17. Farooq Sobhan
Director
18. Kutubuddin Ahamed
Director
19. Mamun Rashid
Director
20. Md. Sarwar-E-Alam
Director
21. Moinul Islam Mahmud
Director
22. ussuf Abdullah Harun, FCA
Director
23. Zaidi Satter
Director
24. essor Dr. Mohammed Abdullah Mamun
CEO & Director

Table: D
Listed Companies in
DSE
Bank

41

CITYBANK (THE CITY BANK LIMITED.)

ABBANK (AB BANK LIMITED.)
IFIC (INTERNATIONAL FINANCE INVESTMENT AND COMMERCE BANK LIMITED)
ISLAMIBANK (ISLAMI BANK BANGLADESH LIMITED.)
NBL (NATIONAL BANK LIMITED.)
PUBALIBANK (PUBALI BANK LIMITD.)
RUPALIBANK (RUPALI BANK LIMITED.)
UCBL (UNITED COMMERCIAL BANK LIMITED.)
UTTARABANK (UTTARA BANK LIMITED.)
EBL (EASTERN BANK LIMITED.)
ALARABANK (ALARAFAH ISLAMI BANK LTD.)
PRIMEBANK (PRIME BANK LTD.)
SOUTHEASTB (SOUTHEAST BANK LIMITED.)
DHAKABANK (DHAKA BANK LIMITED.)
NCCBANK (NATIONAL CREDIT AND COMMERCE BANK LIMITED)
SIBL (SOCIAL ISLAMI BANK LIMITED)
DUTCHBANGL (DUTCH BANGLA BANK LTD.)
MTBL (MUTUAL TRUST BANK LTD.)
STANDBANKL (STANDARD BANK LIMITED)
ONEBANKLTD (ONE BANK LIMITED)
BANKASIA (BANK ASIA LIMITED)
MERCANBANK (MERCANTILE BANK LIMITED)
EXIMBANK (EXPORT IMPORT BANK OF BD. LTD.)
ICBIBANK (ICB ISLAMIC BANK LIMITED)
JAMUNABANK (Jamuna Bank Ltd.)
PREMIERBAN (THE PREMIER BANK LTD.)
SHAHJABANK (SHAHJALAL ISLAMI BANK LTD.)
BRACBANK (BRAC BANK LTD.)
TRUSTBANK (TRUST BANK LIMITED)
FIRSTSBANK (FIRST SECURITY BANK LIMITED)

Cement
HEIDELBCEM (HEIDELBERGCEMENT BANGLADESH LIMITED.)
CONFIDCEM (CONFIDENCE CEMENT LIMITED)
MEGHNACEM (MEGHNA CEMENT MILLS LIMITED)
LAFSURCEML (LAFARGE SURMA CEMENT LTD.)
ARAMITCEM (ARAMIT CEMENT LTD.)
PADMACEM (PADMA CEMENT LTD.)
NILOYCEM (NILOY CEMENT INDUSTRIES LIMITED)

Ceramics Sector
42

STANCERAM (STANDARD CERAMIC INDUSTRIES LTD.)

FUWANGCER (FUWANG CERAMIC INDUSTRY LIMITED)
MONNOCERA (MONNO CERAMIC INDUSTRIES LTD.)
SPCERAMICS (SHINEPUKUR CERAMICS LIMITED)
RAKCERAMIC (RAK CERAMICS (BANGLADESH) LIMITED )

Corporate Bond
IBBLPBOND (IBBL MUDARABA PERPETUAL BOND)
ACIZCBOND (ACI 20% CONVERTIBLE ZERO COUPON)
BRACSCBOND (SUB 25% CONVERTIBLE BONDS OF BRAC BANK LIMITED)

Debenture
DEBBXKNI (BEXIMCO KNITTING LIMITED)
DEBBXDENIM (BEXIMCO DENIMS LIMITED)

Engineering
AFTABAUTO (AFTAB AUTOMOBILES LIMITED.)
BDLAMPS (BANGLADESH LAMPS LIMITED.)
ECABLES (EASTERN CABLES LIMITED)
SINGERBD (SINGER BANGLADESH LIMITED.)
BDAUTOCA (BANGLADESH AUTOCARS LIMITED)
QSMDRYCELL (QUASEM DRYCELLS LIMITED.)
RENWICKJA (RENWICK JAJNESWAR & COMPANY(BANGLADESH) LTD.)
NTLTUBES (NATIONAL TUBES LIMITED.)
NPOLYMAR (NATIONAL POLYMER INDUSTRIES LIMITED)
NAVANACNG (NAVANA CNG LIMITED)
AZIZPIPES (AZIZ PIPES LIMITED.)
OLYMPIC (OLYMPIC INDUSTRIES LIMITED.)
ATLASBANG (ATLAS BANGLADESH LIMITED.)
BDTHAI (BANGLADESH THAI ALUMINIUM LIMITED.)
KAY&QUE (KAY & QUE(BANGLADESH) LIMITED.)
RANFOUNDRY (RANGPUR FOUNDRY LTD.)
MONNOJTX (MONNO JUTEX INDUSTRIES LTD.)
ANWARGALV (ANWAR GALVANIZING LIMITED)
MONNOSTAF (MONNO JUTE STAFLLERS LTD.)
SALAMCRST (S. Alam Cold Rolled Steels Ltd.)
GOLDENSON (GOLDEN SON LTD.)
BSRMSTEEL (BSRM STEELS LIMITED)
DESHBANDHU (DESHBANDHU POLYMER LIMITED)

Financial Institutions

43

IDLC (INDUSTRIAL DEVELOPMENT LEASING COMPANY BANGLADESH LIMITED.)

ULC (UNITED LEASING COMPANY LIMITED.)
UTTARAFIN (UTTARA FINANCE AND INVESTMENT COMPANY LIMITED)
MIDASFIN (MIDAS FINANCING LIMITED)
FLEASEINT (FIRST LEASE INTERNATIONAL LTD.)
PLFSL (PEOPLES LEASING & FINANCIAL SERVICES LTD.)
PRIMEFIN (PRIME FINANCE & INVESTMENT LTD.)
PREMIERLEA (PREMIER LEASING FINANCE LTD.)
ISLAMICFIN (ISLAMIC FINANCE & INVESTMENT LTD.)
ILFSL (INTERNATIONAL LEASING & FINANCIAL SERV.L)
ICB (INVESTMENT CORPORATION OF BANGLADESH.)
BDFINANCE (BANGLADESH FINANCE AND INVESTMENT CO.LTD.)
LANKABAFIN (LankaBangla Finance Ltd.)
BIFC (Bangladesh Industrial Fin. Co. Ltd.)
IPDC (Industrial Prom. & Dev. Co. of BD Ltd.)
UNIONCAP (UNION CAPITAL LIMITED)
PHOENIXFIN (PHOENIX FINANCE AND INVESTMENTS LTD)
FASFIN (FAS Finance & Investment Limited)
DBH (DELTA BRAC HOUSING FINANCE CORP. LTD.)
NHFIL (NATIONAL HOUSING FIN. AND INV. LTD.)
BAYLEASING (BAY LEASING & INVESTMENT LIMITED)

Fuel & Power

BOC (BOC BANGLADESH LIMITED)
SUMITPOWER (SUMMIT POWER LTD.)
EASTRNLUB (EASTERN LUBRICANTS BLENDERS LIMITED)
PADMAOIL (PADMA OIL COMPANY LIMITED)
DESCO (Dhaka Electric Supply Company Ltd.)
POWERGRID (Power Grid Company of Bangladesh Ltd.)
BDWELDING (BD. WELDING ELECTRODES)
JAMUNAOIL (JAMUNA OIL COMPANY LIMITED)
MPETROLEUM (MEGHNA PETROLEUM LIMITED)
TITASGAS (TITAS GAS TRANSMISSION & DIST. CO. LTD.)
KPCL (KHULNA POWER COMPANY LIMITED)

Food & Allied

APEXFOODS (APEX FOODS LIMITED)
BANGAS (BANGAS LIMITED)
BATBC (BRITISH AMERICAN TOBACCO BANGLADESH COMPANY LIMITED)
NTC (NATIONAL TEA COMPANY LIMITED)
ZEALBANGLA (ZEAL BANGLA SUGAR MILLS LIMITED)
SHYAMPSUG (SHYAMPUR SUGAR MILLS LIMITED)

44

GULFOODS (GULF FOODS LIMITED.)

FUWANGFOOD (FUWANG FOODS LIMITED)
MEGCONMILK (MEGHNA CONDENSED MILK INDUSTRIES LTD.)
BEACHHATCH (BEACH HATCHERY LTD.)
FINEFOODS (FINE FOODS LIMITED)
BLTC (BLTC)
HILLPLANT (HILL PLANTATION LIMITED)
MEGHNAPET (MEGHNA PET INDUSTRIES LTD.)
DHAKAFISH (DHAKA FISHERIES LIMITED)
ALPHATOBA (ALPHA TOBACCO MANUFACTURING COMPANY LIMITED)
CTGVEG (CHITTAGONG VEGETABLE OIL INDUSTRIES LIMITED)
RAHIMAFOOD (RAHIMA FOOD CORPORATION LIMITED)
BDPLANT (BANGLADESH PLANTATION LIMITED)
MODERNIND (MODERN INDUSTRIES(BANGLADESH) LIMITED)
GEMINISEA (GEMINI SEA FOOD LIMITED)
AMCL(PRAN) (AMCL (PRAN))
YOUSUFLOUR (YOUSUF FLOUR)
MEGHNASHRM (MEGHNA SHRIMP CULTURE LIMITED)

Insurance
GREENDELT (GREEN DELTA INSURANCE COMPANY LIMITED)
EASTERNINS (EASTERN INSURANCE COMPANY LIMITED)
JANATAINS (JANATA INSURANCE COMPANY LIMITED)
PHENIXINS (PHOENIX INSURANCE COMPANY LIMITED)
EASTLAND (EASTLAND INSURANCE COMPANY LIMITED)
KARNAPHULI (KARNAPHULI INSURANCE COMPANY LIMITED)
RUPALIINS (RUPALI INSURANCE COMPANY LIMITED)
NATLIFEINS (NATIONAL LIFE INSURANCE COMPANY LIMITED)
DELTALIFE (DELTA LIFE INSURANCE COMPANY LIMITED)
PRAGATIINS (PRAGATI INSURANCE LIMITED)
PIONEERINS (PIONEER INSURANCE COMPANY LTD.)
MERCINS (MERCANTILE INSURANCE CO. LTD.)
AGRANINS (AGRANI INSURANCE CO. LTD.)
GLOBALINS (GLOBAL INSURANCE LTD.)
POPULARLIF (POPULAR LIFE INSURANCE CO. LTD.)
FAREASTLIF (FAREAST ISLAMI LIFE INSURANCE CO.)
MEGHNALIFE (MEGHNA LIFE INSURANCE CO. LTD.)
NITOLINS (NITOL INSURANCE CO. LTD)
UNITEDINS (UNITED INSURANCE COMPANY LIMITED)
CENTRALINS (CENTRAL INSURANCE COMPANY LIMITED)
SANDHANINS (SANDHANI LIFE INSURANCE COMPANY LIMITED)
PROGRESLIF (PROGRESSIVE LIFE INSURANCE CO. LTD)

45

PRIMEINSUR (PRIME INSURANCE COMPANY LTD.)

RELIANCINS (RELIANCE INSURANCE LIMITED)
PEOPLESINS (PEOPLES INSURANCE COMPANY LIMITED)
ASIAPACINS (ASIA PACIFIC GENERAL INSURANCE)
SONARBAINS (SONAR BANGLA INSURANCE LTD.)
ISLAMIINS (ISLAMI INSURANCE BANGLADESH LIMITED)
FEDERALINS (FEDERAL INSURANCE COMPANY LIMITED)
PURABIGEN (PURABI GENERAL INSURANCE COMPANY LIMITED)
BGIC (BANGLADESH GENERAL INSURANCE COMPANY LIMITED)
PRIMELIFE (PRIME ISLAMI LIFE INSURANCE LTD.)
PRAGATILIF (PRAGATI LIFE INSURANCE LTD.)
PARAMOUNT (PARAMOUNT INSURANCE COMPANY LTD)
CITYGENINS (CITY GENERAL INSURANCE CO. LTD.)
CONTININS (CONTINENTAL INSURANCE LTD.)
STANDARINS (STANDARD INSURANCE LIMITED)
TAKAFULINS (TAKAFUL ISLAMI INSURANCE LIMITED)
NORTHRNINS (NORTHERN GENERAL INSURANCE COMPANY LTD)
REPUBLIC (REPUBLIC INSURANCE COMPANY LIMITED)
ASIAINS (ASIA INSURANCE LIMITED)
RUPALILIFE (RUPALI LIFE INSURANCE COMPANY LIMITED)
PROVATIINS (PROVATI INSURANCE COMPANY LIMITED)
DHAKAINS (DHAKA INSURANCE LIMITED)

IT Sector
ISNLTD (INFORMATION SERVICES NETWORK LTD.)
BDCOM (BDCOM ONLINE LIMITED.)
INTECH (INTECH ONLINE LIMITED.)
AGNISYSL (AGNI SYSTEMS LTD.)
DAFODILCOM (DAFFODIL COMPUTERS LTD.)

Jute
NORTHERN (NORTHERN JUTE MANUFACTURING COMPANY LIMITED)
JUTESPINN (JUTE SPINNERS LIMITED)
SONALIANSH (SONALI AANSH INDUSTRIES LIMITED)

Miscellaneous
GQBALLPEN (GQ BALL PEN INDUSTRIES LIMITED)
USMANIAGL (USMANIA GLASS SHEET FACTORY LIMITED)
SINOBANGLA (SINOBANGLA INDUSTRIES LTD.)
MIRACLEIND (MIRACLE INDUSTRIES LIMITED.)
BERGERPBL (BERGER PAINTS BANGLADESH LTD.)

46

ARAMIT (ARAMIT LIMITED)

SAVAREFR (SAVAR REFRACTORIES LIMITED)
BEXIMCO (BEXIMCO )
BSC (BANGLADESH SHIPPING CORPORATION)
ENGINEER (THE ENGINEERS)
HIMADRI (HIMADRI)

Mutual Funds
6THICB (SIXTH ICB MUTUAL FUND.)
8THICB (EIGHTH ICB MUTUAL FUND)
AIMS1STMF (AIMS FIRST GUARANTEED MUTUAL FUND.)
ICBAMCL1ST (ICB AMCL FIRST MUTUAL FUND)
ICBISLAMIC (ICB AMCL ISLAMIC MUTUAL FUND)
GRAMEEN1 (GRAMEEN MUTUAL FUND ONE)
PF1STMF (PHOENIX FINANCE 1ST MUTUAL FUND)
EBL1STMF (EBL FIRST MUTUAL FUND)
1STICB (FIRST ICB MUTUAL FUND.)
7THICB (SEVENTH ICB MUTUAL FUND.)
3RDICB (THIRD ICB MUTUAL FUND.)
5THICB (FIFTH ICB MUTUAL FUND.)
TRUSTB1MF (TRUST BANK 1ST MUTUAL FUND)
4THICB (FOURTH ICB MUTUAL FUND.)
1STBSRS (FIRST BANGLADESH SHILPA RIN SANGSTHA MUTUAL FUND.)
ICBAMCL2ND (ICB AMCL SECOND MUTUAL FUND)
2NDICB (SECOND ICB MUTUAL FUND.)
ICB1STNRB (ICB AMCL 1ST NRB MUTUAL FUND)
ICB2NDNRB (ICB AMCL 2ND NRB MUTUAL FUND)
GRAMEENS2 (GRAMEEN ONE : SCHEME TWO)
1STPRIMFMF (PRIME FINANCE FIRST MUTUAL FUND)
ICBEPMF1S1 (ICB EMPLOYEES PROVIDENT MF 1: SCHEME 1)
PRIME1ICBA (PRIME BANK 1ST ICB AMCL MUTUAL FUND)
DBH1STMF (DBH FIRST MUTUAL FUND)
IFIC1STMF (IFIC BANK 1ST MUTUAL FUND)
ICB3RDNRB (ICB AMCL THIRD NRB MUTUAL FUND)
1JANATAMF (First Janata Bank Mutual Fund)
GREENDELMF (Green Delta Mutual Fund)
POPULAR1MF (POPULAR LIFE FIRST MUTUAL FUND)
PHPMF1 (PHP FIRST MUTUAL FUND)
IFILISLMF1 (IFIL ISLAMIC MUTUAL FUND-1)
AIBL1STIMF (AIBL 1st Islamic Mutual Fund)
MBL1STMF (MBL 1ST MUTUAL FUND)

47

Paper & Printing

HAKKANIPUL (HAKKANI PULP & PAPER MILLS LTD.)

Pharmaceuticals & Chemicals

BANGLAPRO (BANGLA PROCESS INDUSTRIES LIMITED)
BXPHARMA (BEXIMCO PHARMACEUTICALS LIMITED)
ACI (ADVANCED CHEMICAL INDUSTRIES LIMITED)
RECKITTBEN (RECKITT BENCKISER(BANGLADESH) LTD.)
IBNSINA (THE IBN SINA PHARMACEUTICAL INDUSTRY LTD.)
MARICO (MARICO BANGLADESH LIMITED)
BXSYNTH (BEXIMCO SYNTHETICS LIMITED)
ORIONINFU (ORION INFUSION LTD.)
SQURPHARMA (SQUARE PHARMACEUTICALS LIMITED)
IMAMBUTTON (IMAM BUTTON INDUSTRIES LIMITED)
KEYACOSMET (KEYA COSMETICS LTD.)
KEYADETERG (KEYA DETERGENT LTD.)
AMBEEPHA (AMBEE PHARMACEUTICALS LIMITED)
GLAXOSMITH (GLAXOSMITHKLINE BANGLADESH LTD.)
RENATA (RENATA LIMITED)
KOHINOOR (KOHINOOR CHEMICAL COMPANY(BANGLADESH) LTD.)
LIBRAINFU (LIBRA INFUSIONS LTD.)
PHARMAID (PHARMA AIDS LIMITED)
TBL (THERAPEUTICS(BANGLADESH) LIMITED)
ACIFORMULA (ACI FORMULATIONS LIMITED)
BEACONPHAR (BEACON PHARMACEUTICALS LIMITED)
ACTIVEFINE (ACTIVE FINE CHEMICALS LIMITED)
SALVOCHEM (SALVO CHEMICAL INDUSTRY LIMITED)

Services & Real Estate

EHL (EASTERN HOUSING LIMITED)
SAMORITA (SAMORITA HOSPITAL LTD.)
SAPORTL (SUMMIT ALLIANCE PORT LIMITED)
OCL (OCEAN CONTAINERS LIMITED)

Tannery Industries
APEXTANRY (APEX TANNERY LIMITED)
APEXADELFT (APEX ADELCHI FOOTWEAR LTD.)
LEGACYFOOT (LEGACY FOOTWEAR LTD.)
BATASHOE (BATA SHOE COMPANY(BANGLADESH) LTD.)
SAMATALETH (SAMATA LEATHER COMPLEX LTD.)

48

Telecommunication
GP (GRAMEENPHONE LTD.)

Textile
DELTASPINN (DELTA SPINNERS LTD.)
APEXWEAV (APEX WEAVING & FINISHING MILLS LIMITED)
ALLTEX (ALLTEX INDUSTRIES LTD.)
ANLIMAYARN (ANLIMA YEARN DYEING LTD.)
HRTEX (H.R. TEXTILE MILLS LIMITED)
SQUARETEXT (SQUARE TEXTILES LTD.)
MALEKSPIN (MALEK SPINNING MILLS LTD.)
QSMSILK (QUASEM SILK MILLS LIMITED)
DSHGARME (DESH GARMENTS LIMITED)
APEXSPINN (APEX SPINNING & KNITTING MILLS LIMITED)
MONNOFABR (MONNO FABRICS LTD.)
PRIMETEX (PRIME TEXTILE SPINNING MILLS LTD.)
DACCADYE (THE DACCA DYEING & MANUFACTURING CO.LTD.)
METROSPIN (METRO SPINNING LTD.)
SAIHAMTEX (SAIHAM TEXTILE MILLS LTD.)
DULAMIACOT (DULAMIA COTTON SPINNING MILLS LIMITED)
RAHIMTEXT (RAHIM TEXTILE MILLS LTD.)
MODERNDYE (MODERN DYEING & SCREEN PRINTING LTD.)
CMCKAMAL (CMC KAMAL TEXTILE MILLS LTD.)
SONARGAON (SONARGAON TEXTILES LIMITED)
TALLUSPIN (TALLU SPINNING MILLS LIMITED)
MITHUNKNIT (MITHUN KNITTING AND DYEING(CEPZ) LTD.)
SAFKOSPINN (SAFKO SPINNING MILLS LTD.)
BEXTEX (BEXTEX LTD.)
STYLECRAFT (STYLECRAFT LIMITED)
MAKSONSPIN (MAKSONS SPINNING MILLS LIMITED)
AL-HAJTEX (AL-HAJ TEXTILE)
RNSPIN (R.N. SPINNING MILLS LIMITED)

Travel & Leisure

BDHOTELS (BANGLADESH HOTELS)
BDSERVICE (BANGLADESH SERVICES)
UNITEDAIR (UNITED AIRWAYS (BD) LTD.)

Untitled
WONDERTOYS (WONDERLAND TOYS LIMITED.)

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TRIPTI (TRIPTI INDUSTRIES LIMITED)

BXFISHERY (BEXIMCO FISHERIES LIMITED)
SONALIPAPR (SONALIPAPR )
MONAFOOD (MONA FOOD INDUSTRY LIMITED)
GACHIHATA (GACHIHATA AQUACULTURE FARMS LIMITED)
BIONICFOOD (BIONIC SEAFOOD EXPORTS LTD.)
ASHRAFTEX (ASHRAF TEXTILE MILLS LTD.)
EAGLESTAR (EAGLE STAR TEXTILE MILLS LTD.)
DYNAMICTEX (DYNAMIC TEXTILE INDUSTRIES LIMITED)
PHARMACO (PHARMACO INTERNATIONAL LTD.)
RAHMANCHEM (RAHMAN CHEMICALS LIMITED)
MAQPAPER (MAQ PAPER INDUSTRIES LIMITED)
SHINEPUKUR (SHINEPUKUR HOLDINGS LIMITED)
MODERNCEM (MODERN CEMENT LIMITED.)
BDONLINE (BANGLADESH ONLINE LTD.)
LEXCO (LEXCO LIMITED)
EXCELSHOE (EXCELSIOR SHOES LIMITED)
BDLUGGAGE (BANGLADESH LUGGAGE INDUSTRIES LIMITED)
ROSEHEAVEN (ROSE HEAVEN BALL PEN LIMITED)
BENGALBISC (BENGAL BISCUITS LIMITED)
GBJVFOOD (GERMAN BANGLA J.V. FOOD LTD.)
CHICTEX (CHICTEX LTD.)
RASPIT (RASPIT INC (BD) LIMITED)
QSMTEX (QUASEM TEXTILE MILLS LIMITED)
MITATEX (MITA TEXTILES LIMITED)
MHOSSAIN (M. HOSSAIN GARMENTS WASHING & DYEING LIMITED)
PETROSYNTH (PETRO SYNTHETIC PRODUCTS LTD.)
TAMIJTEX (TAMIJUDDIN TEXTILE MILLS LTD.)
WATACHEM (WATA CHEMICALS LIMITED)
PERFUMCHM (PERFUME CHEMICAL INDUSTRIES LTD.)
ALAMINCHEM (ALAMIN CHEMICAL INDUSTRIES LTD.)
PADMAPRINT (PADMA PRINTERS & COLOUR LTD.)
DANDYDYE (DANDY DYEING LIMITED)
MONOSPOOL (BANGLADESH MONOSPOOL PAPER MANUFACTURING COMPANY LTD.)
BDDYE (BANGLADESH DYEING & FINISHING INDUSTRIES LIMITED)
BENGALFINE (BENGAL FINE CERAMICS LIMITED)
SAJIBKNIT (SAJIB KNITWEAR & GARMENTS LIMITED)
MAQENTER (MAQ ENTERPRISES LTD.)
TULIPDAIRY (TULIP DAIRY AND FOOD PRODUCTS LIMITED)
RANGAFOOD (RANGAMATI FOOD PRODUCTS LTD.)
PAPERPROC (PAPER PROCESSING & PACKAGING LIMITED)

50

BEMCO (BANGLADESH ELECTRICITY METER COMPANY LIMITED)

SREEPURTEX (SREEPUR TEXTILE MILLS LTD.)
BDZIPPER (BANGLADESH ZIPPER INDUSTRIES LIMITED)
GMGIND (GMG INDUSTRIAL CORPORATION LIMITED)
AMAMSEAFD (AMAM SEA FOOD INDUSTRIES LIMITED.)
SALEHCARPT (SALEH CARPET MILLS LIMITED)
BCIL (BANGLADESH CHEMICAL INDUSTRIES LTD)
RASPITDATA (RASPIT DATA MANAGEMENT)
DSEGEN (DSE GENERAL INDEX)

Table: E
Listed Companies in
LIFE INSURANCE
CSE
Delta Life Insurance Company Ltd.
National Life Insurance Company Ltd.
Sandhani Life Insurance Company Ltd
Popular Life Insurance Company Ltd.
Fareast Islami Life Insurance Company Ltd.
Meghna Life Insurance Company Ltd.
Progressive Life Insurance Company Ltd.
Pragati Life Insurance Ltd.
Prime Islami Life Insurance Ltd.
Rupali Life Insurance Company Ltd.
GENERAL INSURANCE
Rupali Insurance Company Limited
Peoples Insurance Company Limited
Green Delta Insurance Company Ltd
Reliance Insurance Ltd.
Janata Insurance Company Ltd.
Central Insurance Company Ltd.
Federal Insurance Company Ltd.
Bangladesh General Ins. Company Ltd.
Pragati Insurance Ltd
Phoenix Insurance Company Ltd
Eastern Insurance Company Ltd
Eastland Insurance Company Ltd
Prime Insurance Company Ltd.
Pioneer Insurance Company Ltd.
Nitol Insurance Company Ltd.
Asia Pacific General Insurance Company Ltd.
Sonar Bangla Insurance Ltd.
Paramount Inurance Co. Ltd.
City General Insurance Co. Ltd.
Continental Insurance Ltd.

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Takaful Islami Insurance Ltd.

Standard Insurance Ltd.
Norhern General Insurance Co. Ltd.
Republic Insurance Co. Ltd.
Mercantile Insurance Company Ltd.
Asia Insurance Ltd.
Islami Insurance Bangladesh Ltd.
Provati Insurance Company Ltd.
Dhaka Insurance Ltd.
TEXTILES & CLOTHING
Prime Textile Spinning Mills Ltd
Apex Spinning & Knitting Mills Ltd.
Dulamia Cotton Spinning Mills Ltd
Beximco Synthetics Ltd
Bextex Ltd
Sonargaon Textiles Ltd
Delta Spinners Ltd
H.R. Textile Mills Ltd
Saiham Textile Mills Ltd
Safko Spinning Mills Ltd.
Tallu Spinning Mills Ltd.
Mithun Knitting and Dyeing (CEPZ) Ltd.
Square Textiles Ltd.
Metro Spinning Ltd.
Maksons Spinning Mills Ltd.
R.N.Spinning Mills Ltd.
Malek Spinning MIlls Ltd.
PHARMACUTICLES & CHEMICALS
Square Pharmaceuticals Ltd
ACI Ltd
Beximco Pharmaceuticals Ltd
Reckitt Benckiser ( Bangladesh) Ltd.
Ambee Pharmaceuticals Ltd
Kohinoor Chemical Co. (Bd) Ltd
Libra Infusions Ltd
The Ibn Sina Pharmaceutical Industry Ltd.
Keya Cosmetics Ltd.
Keya Detergent Ltd.
Berger Paints Bangladesh Ltd.
ACI Formulations Ltd.
Marico Bangladesh Ltd.
Beacon Pharmaceuticals Ltd.
Active Fine Chemicals Ltd
Salvo Chemical Industry Ltd.
52

FOODS & ALLIED PRODUCTS

Apex Foods Limited
Agricultural Marketing Co.Ltd.
CVO Petrochemical Refinery Ltd.
National Tea Co. Ltd
Rahima Food Corporation Ltd
Fu-Wang Foods Ltd.
Bangas Ltd.
Beach Hatchery Ltd.
Fine Foods Limited
CEMENT
Confidence Cement Ltd
Heidelberg Cement Bangladesh Ltd
Meghna Cement Mills Ltd
Aramit Cement Limited
Lafarge Surma Cement Ltd.
M.I.Cement Factory Ltd.
ENGINEERING & ELECTRICAL PRODUCTS
Aziz Pipes Ltd
Quasem Drycells Limited
Anwar Galvanizing Ltd
Aftab Automobiles Limited
Olympic Industries Limited
Bangladesh Thai Aluminium Ltd
Bangladesh Autocars Ltd
Bangladesh Lamps Ltd
Kay & Que (Bangladesh) Ltd
Eastern Cables Limited
Rangpur Foundry Ltd.
Bangladesh Welding Electrodes Ltd.
Singer Bangladesh Ltd.
S. Alam Cold Rolled Steels Ltd.
Golden Son Limited
BSRM Steels Ltd.
Navana CNG LTD.

LEATHER & FOOTWEAR

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Apex Tannery Ltd

Apex Adelchi Footwear Limited
Legacy Footwear Ltd.
Bata Shoe Co. ( Bangladesh) Ltd.
SERVICES & PROPERTY DEVELOPMENT
Eastern Housing Ltd
Samorita Hospital Ltd
Summit Alliance Port Ltd.
Ocean Containers Ltd.
United Airways (BD) Ltd.
PAPERS & PRINTING
Sinobangla Industries Ltd
Miracle Industries Ltd.
Hakkani Pulp & Paper Mills Ltd.

FUEL & POWER

Padma Oil Company Ltd
BOC Bangladesh Ltd
Summit Power Ltd.
Dhaka Electric Supply Company Ltd. (DESCO)
Power Grid Company of Bangladesh Ltd.
Jamuna Oil Comapny Ltd.
Meghna Petroleum Ltd.
Titas Gas Transmission & Distribution Co. Ltd.
Khulna Power Company Ltd.
MUTUAL FUNDS
1st Icb Mf
2nd Icb Mf
3rd Icb Mf
4th Icb Mf
5th Icb Mf
6th Icb Mf
7th Icb Mf
8th Icb Mf
1st BSRS Mutual Fund (Asset Manager of Bangladesh Development Bank Ltd.)
Aims First Guaranteed Mutual Fund ( Asset Manager of AIMS of Bangladesh Ltd.)
ICB AMCL First Mutual Fund (Asset Manager of ICB Asset Management Company Ltd.)
ICB AMCL ISLAMIC MUTAL FUND (Asset Manager of ICB Asset Management
Company Ltd.)
Grameen Mutual Fund One (Asset Manager of AIMS of Bangladesh Ltd.)
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ICB AMCL First NRB Mutual Fund (Asset Magaer of ICB Asset Management Compnay
Ltd.)
ICB AMCL Second NRB Mutual Fund (Asset Manger of ICB Asset Management
Company Ltd.)
Grameen One "Scheme Two" (Asset Manager of AIMS of Bangladesh Ltd.)
Prime Finance First Mutual Fund (Asset Manager of ICB Asset Management Co.Ltd.)
EBL First Mutual Fund ( Asset Manager of Race Management PCL)
ICB AMCL 2ND Mutual Fund (Asset Manager of ICB Asset Management Company Ltd.)
ICB Employees Provident Mutual Fund One : Scheme One
Trust Bank 1st Mutual Fund (Asset Manager of Race Management PCL)
Prime Bank 1ST ICB AMCL Mutual Fund( Asset Manager of ICB Asset Management
Company Ltd.)
DBH First Mutual Fund (Asset Manager of LR Global Bangladesh Asset Management
Company Ltd.)
IFIC Bank First Mutual Fund (Asset Manager of RACE Management PCL)
Phoenix Finance 1st Mutual Fund ( Asset Manager of ICB Asset Management Company
Ltd.)
ICB AMCL Third NRB Mutual Fund (Asset Manager of ICB Asset Mangemnet Company
Ltd.)
First Janata Bank Mutual Fund (Asset Manager of Race Management PCL)Green Delta
Mutual Fund (Assedt Manager of LR Global Bangladesh Asset Management Co.Ltd.)
Popular life First Mutual Fund (Asset Manager of RACE Managemenet PCL)
IFIL Islamic Mutual Fund-1(Asset Manager of ICB Asset Management Co. Ltd.)
PHP First Mutual Fund (Asset Manager of RACE Management PCL)
AIBL 1st Islamic Mutual Fund (Asset Manger of LR Global Bangladesh Asset
Management Co. Ltd.)
MBL 1st Mutual Fund ( Asset Manager of LR Global Bangladesh Asset Management Co.
Ltd.)
BANKING
AB Bank Ltd
National Bank Ltd
United Commercial Bank Ltd
Rupali Bank Ltd
The City Bank Ltd
Pubali Bank Ltd
Islami Bank Bangladesh Ltd
IFIC Bank Ltd
Al-Arafah Islami Bank Limited
Prime Bank Ltd.
Dhaka Bank Ltd.
Southeast Bank Ltd.
National Credit & Commerce Bank Ltd.
Dutch- Bangla Bank Ltd.
Mutual Trust Bank Ltd.
Standard Bank Limited

55

One Bank Ltd.

Bank Asia Ltd.
Mercantile Bank Limited
Uttara Bank Ltd.
Eastern Bank Ltd.
Exim Bank Ltd.
Social Islami Bank Ltd.
Jamuna Bank Ltd.
BRAC Bank Ltd.
Shahjalal Islami Bank Ltd.
The Premier Bank Ltd.
Trust Bank Ltd.
First Security Islami Bank Ltd
CERAMICS
Monno Ceramic Industries Ltd
Standard Ceramic Industries Ltd
Fu-Wang Ceramic Industry Ltd
Shinepukur Ceramics Ltd.
RAK Ceramics (Bangladesh) Ltd.
I CT

Information Services Network Ltd

BDCOM Online Ltd
Intech Online Ltd.
Agni Systems Ltd.
Daffodil Computers Ltd
LEASING & FINANCE
Investment Corporation of Bangladesh
IDLC Finance Ltd
Uttara Finance and Investments Ltd
First Lease Finance & Investment Ltd.
Midas Financing Ltd.
People's Leasing and Financial Services Ltd.
Prime Finance & Investment Ltd.
Premier Leasing & Finance Ltd.
Islamic Finance and Investment Ltd.
Lanka Bangla Finance Ltd.
Bangladesh Industrial Finance Co.Ltd.
IPDC of Bangladesh Ltd.
Union Capital Ltd.
Bangladesh Finance and Investment Compnay Ltd.
International Leasing and Financial Services Ltd.
Phoenix Finance & Investments Ltd.
FAS Finance & Investment Ltd.

56

Delta Brac Housing Finance Corporation Ltd.

National Housing Finance and Investments Ltd.
Bay Leasing & Investment Ltd.
TELECOMMUNICATION
GPGrameenphone Ltd.
MISCELLANEOUS
Usmania Glass Sheet Factory Ltd
Aramit Ltd
BEXIMCO Ltd.
Bangladesh Shipping Corporation
National Polymer Industries Ltd
GQ Ball Pen Industries Ltd
Imam Button Industries Ltd
British American Tobacco Bangladesh Co. Ltd.
Deshbandhu Polymer Ltd.
CORPORATE BOND
IBBL MUDARABA PERPETUAL BOND

ACI 20% Convertible Zero Coupon Bonds

Subordinated 25% Convertable Bonds of BRAC Bank Ltd.

57