Share Market in Bangladesh

Share Market

Bangladesh has two Stock Exchanges, Dhaka Stock Exchange (DSE), where trading is conducted by Computerized Automated Trading System and Chittagong Stock Exchange (CSE), which is also conducted by Computerized Automated Trading System . All exchanges are self-regulated, private sector entities which must have their operating rules approved by the SEC. The Bangladesh Securities and Exchange Commission (BSEC) 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, at present has three full time members, excluding the Chairman. The Commission is a statutory body and attached to the Ministry of Finance.

Dhaka Share Market consists of the Dhaka Stock Exchange or DSE, the main share market of Bangladesh. DSE is situated at the main market place of Dhaka, capital of Bangladesh, called Motijhil. Dhaka Share Market formally started its trading in the year 1956 even before the formation of Bangladesh as a country. Dhaka Share Market is still at its infant stage and has to walk a long way for coming into the radar of the Global Financial Market. 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.

Stock Exchanges are mutual organization that facilitates trading of company stocks and securities to the stock brokers and traders. The stock exchanges deals with the issue of securities and other financial instruments. The stock exchanges also involves in the payment of income and dividends. The role of the stock exchange is to raise capital for businesses, mobilize savings for investment, facilitate company growth, and redistribute wealth as well as raising capital for financing the development projects of the government.

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