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Internship Report BBA
Internship Report BBA
Internship Report BBA
com
Supervisor:
Professor M. Shahjahan Mina Advisor Faculty of Business and Economics Daffodil International University
Prepared by:
Syed Kamal Uddin ID # 053-11-978 BBA (12th Batch) Major in Finance Faculty of Business & Economics Daffodil International University
Letter of Transmittal
23th February 2009
To Professor M. Shahjahan Mina Advisor Faculty of Business and Economics Daffodil International University
Dear Sir With proper honor I would like to state that I have completed the Internship Report assigned by you named Human Resource Process of Dhaka Stock Exchange Ltd. I have tried my best to fulfill all the requirements to make my Internship Report according to your expectation. Without the sincere co-operation and proper guidance of you, it is not possible for me to prepare the report. For this act of kindness I am grateful to you. So, I would like to request you to accept my Internship Report that is enclosed with this application for your kind consideration.
Sincerely yours
Syed Kamal Uddin ID # 053-11-978 BBA (12th Batch) Major in Finance Faculty of Business & Economics Daffodil International University
Certificate of Approval
This is to certify that the Internship Report on Human Resource Process of Dhaka Stock Exchange Ltd. in the bona fide record at the report is done by Syed Kamal Uddin, ID # 053-11978, of the Department of Business Administration; Daffodil International University has been approved for presentation and defence/viva-voce. Under my supervision Syed Kanal Uddin worked with Dhaka Stock Exchange Ltd. as an Intern.
The Report has been prepared under my guidance and is a record of the bona fide work carried out successfully. It has indeed been a great pleasure working with him. I wish him all success in life.
Professor M. Shahjahan Mina Advisor Faculty of Business and Economics Daffodil International University Date
Letter of Authorization
This is to certify that Mr. Syed Kamal Uddin has been doing Internship Program in Dhaka Stock Exchange Ltd under Human Resources Department. from 3 rd May 2009. He has been doing BBA from Faculty of Business and Economics, Department of Business Administration, Daffodil International University. Internship is a part of his BBA program. We have tried our best to provide him all the assistance to complete his internship as a part of his BBA. I hope that the report of Mr. Syed Kamal Uddin will be effective for anybody and any organization to get proper knowledge about the Human Resources Management. I wish him all the success in his life.
Ms. Hosne Ara Pervin Assistant General Manger HRM, Administration & Training Affairs Dhaka Stock Exchange Limited.
DECLARATION
I do hereby solemnly declare that the work presented in this Internship Report has been carried out by me and has not been previously submitted to any other University/College/Organization for an academic qualification/certificate/diploma or degree. The work I have presented does not breach any existing copyright and no portion of this report is copied from any work done earlier for a degree or otherwise. I further undertake to identify the Department against any loss or damage arising from breach of the foregoing obligations.
Preface
Internship in BBA program is a scope of gathering practical knowledge on corporate environment by engaging in an organization for a certain period. This report on is the result of a survey that is conducted during the internship period in DSE. Several Multinational stock exchanges are operating their activities since long time. They are playing a very important role in enhancing the quality of the stock exchange service in the country. Basically these multinational stock exchanges are providing services to the local and Govt. stock exchange of our country regarding foreign trade transaction. In quality maintenance, stock exchange plays an important role. A good harmony between foreign and local stock exchange can ensure a quality service in international trade service. The position of the multinational stock exchange in this market gives us a view about their performance and overall market condition. In this report, an attempt has been made to portray a picture on market condition and service quality of institutional stock exchange organizations in our country.
ACKNOWLEDGEMENT
Internship program in Dhaka Stock Exchange Ltd. has given me practical orientations with the real work life. One individual without the help of others can complete no work. In every step of this study many individuals and institutional experts supported me. It gives me an immense pleasure to acknowledge them with my gratitude. First of all, I want to express my heartfelt gratitude to Almighty Allah without whose help it would not have been possible for me to prepare this paper. I would like to express my deep sense of gratitude to all those who are always a source of inspiration for their involvement, unconditional cooperation and support in all my academic endeavors. Without their encouragement, I could not stand in pride as having done some academic work. I am indebted to all of them. It would be unthinkable to prepare such a paper and present it in a lucid manner without the help of my supervisor Professor M. Shahjahan Mina, Advisor, Daffodil International University. I would like to extent my gratitude to Ms. Hosne Ara Pervin, AGM, HRM, Administration & Training Affairs, Dhaka Stock Exchange Ltd, for her kind advice and suggestions. Then I would like to thanks Md. Saiful Islam, Executive, HRM, Administration & Training Affairs and Mr. Mohammad Ebna Reaz, Executive Officer, Merchant Banking Division, South East Bank Ltd. and all superior, subordinate and colleague of Dhaka Stock Exchange Ltd. for their advice and supp ort and also the classmates of BBA, Daffodil International University who made it easy for me to complete university life. I would like to express my gratitude to Research, Development & Information, Public Relations & Publications Department, Monitoring, Investigation & Compliance, Market Operation, and other personnel of for their cooperation to make this report effective.
I would like to thank all those who contributed through their comments and suggestions to prepare this paper in a comprehensive manner. In order to prepare this paper I tried to devote my best effort and knowledge at a great extent. I beg pardon to my supervisor for my unintentional error, if any. Finally I would like to thank my family for their support and help during the entire tenure of BBA. II
EXECUTIVE SUMMARY
It gives me immense pleasure that during internship period, as part of the BBA program. The internship report is prepared with respect to the two months internship program in Dhaka Stock Exchange Ltd. The internship program helped me a lot to learn about the practical environment and situation of a financial institution and also make up a bridge between the theoretical and practical aspects and also to implement my theoretical knowledge in to the practical and realistic work environment.
This report is composed of six chapters, which are further divided into different parts. In the first chapter the introductory portion has been presented along with background of the study, benefit of study and the objective of the study and the methodology, limitation and an overview of DSE, has been discussed in chapter two. Chapter three deals with the capital markets, primary market, secondary market, securities and exchange commission, functions of capital market, surveillance of DSE, instrument available in the capital market, share categorization: A, B, G, Z & N, total listed company, and Central Depository Bangladesh Limited (CDBL).
In Chapter four, discussed responsibilities of HR, admin & training affairs department, routine tasks, training activities, disciplinary procedure, employee benefits and HR policy for DSE employee. In chapter five, I have highlighted the recruitment and selection process of DSE. In chapter six, I have highlighted the, findings recommendation and conclusion, which includes details. I tried to bridge up all the findings based on analysis and discussions. While preparing the report I always tried my best level to make it authentic and at the same time easily understandable. For this, I came up with a number of reference books and journals to get the theoretical backup. In spite of my heart and soul effort there may be some mistakes and unforeseen errors, which may arise due to my naive or inexperience state.
III
The practical activities of different desks what I have done is outlined in this report. Various rules and regulations, policies and procedures relating to different activities have also been enumerated here
DSE has lots of scope to improve in this market as they have some competitive advantages as a worlds one of the largest Stock exchange .It has number of branches around the Bangladesh. Which can play an important role to create a positive impression in the market.
IV
CONTENTS
Particulars Preface
Acknowledgement Executive Summary
Page # I
II III
1-6
2 2 2 3 3 4 4 4 5 6
7-20
8 9 9 11 12 12 12 13 13 14
2.4 Legal Control- DSE As An Organization 2.5 The Major Functions Of DSE
2.6 Membership
Particulars
2.7 Policy Making Body: The Board Of Directors 2.8 DSE Management 2.8.1 DSE Board of Directors 2.9 Other Activities 2.10 Different Departments Of DSE 2.11 DSE Website 2.12 Organogram Of DSE
Page #
14 15 16 18 18 19 20
21-42
22 22 22 23 23 24 25 26 26 26 26 27 27 27 28 30 31 31 33 34
II
Particulars
3.16 Share Categorization: A, B, G, Z & N 3.17 Total Listed Company 3.17.1 Listed Sector Of DSE 3.18 Central Depository Bangladesh Limited 3.18.1 What Is A Depository?
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35 36 41 41 42
43-62
44 45 46 46 46 46 46 47 47 48 48 48 49 49 49 49 50 50 51 52 53
4.3 Key Functions of HRD 4.3.1 Recruitment 4.3.2 Selection 4.3.3 Induction and Orientation 4.3.4 Training 4.3.4.1 Local Training 4.3.4.2 Overseas Training 4.3.5 Placement 4.3.6 Performance Appraisal 4.3.6.1 Rewarding the Good Employees 4.3.7 Promotion: 4.3.8 Personnel Development 4.3.9 Recruitment of Intern 4.3.10 Human Rights at Work Place 4.3.11 Attendance 4.3.12 Leave 4.3.12.1 Ordinary Leave 4.3.12.2 Extra-ordinary leave 4.3.13 Submission of Annual Confidential Report (ACR)
III
Particulars
4.3.14 Preserve All Employees Personal File 4.3.15 Proper Implementation of DSE Service Rules 4.3.16Disciplinary Procedure 4.3.17 Employee Benefits 4.3.17.1 Overtime 4.3.17.2 Festival Bonus 4.3.17.3 Employee Remuneration 4.3.17.4 Food Allowance 4.3.17.5 Special Bonus/Allowance 4.3.17.6 Increment 4.3.18 Payment of Compensation (Group Insurance) 4.3.18.1 Health Insurance 4.3.18.2 Provident Fund 4.3.18.3 Gratuity 4.3.19 Transfer
Page #
54 54 55 57 57 57 58 59 59 59 60 60 61 61 61 62
4.3.20 Termination
Chapter- 5: Recruitment & Selection Process Of DSE
5.1 Recruitment 5.2 Sources of Recruitment 5.2.1 Recruitment process is as follows 5.3 Recruitment Procedure 5.3.1 External Recruitment 5.3.2 Media Advertisement 5.3.3 University Recruiting 5.3.4 Internet 5.3.5 Interns 5.3.6 Internal Recruitment
63-73
64 64 65 66 66 66 66 67 67 68
IV
Particulars
5.4 Selection 5.5 Selection Criteria 5.6 Categories of Criteria 5.6.1 Formal Education 5.6.2 Personal Characteristics and Personality Type 5.7 Selection Process 5.7.1 Step 1: Initial Screening 5.7.2 Step 2: Completing the Application Form 5.7.3 Step 3: Employment Written Test 5.7.4 Step 4: Cognitive Ability Test 5.7.5 Step 5: Employment Interview 5.7.6 Step 6: Reference & Medical Check Up 5.7.7 Step 7: Selection Decision 5.7.8 Step 8: Job Offer 5.9 Critical Aspects of Labor force of DSE
Page #
68 68 68 68 69 69 69 70 70 71 71 72 72 72 73
74-82
75 76 76 77 77 77 78-81 82
Bibliography:...............................................83
CHAPTER-1
Introductory Part
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1.1 Introduction
Bangladesh capital market is one of the smallest in Asia but the third largest in the south Asia region. It has two full-fledged automated stock exchanges namely Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) and an over-the counter exchange operated by CSE. It also consists of a dedicated regulator, he Securities and Exchange Commission (SEC), since, it implements rules and regulations, monitors their implications to operate and develop the capital market. It consists of Central Depository Bangladesh Limited (CDBL), the only Central Depository in Bangladesh that provides facilities for the settlement of transactions of dematerialized securities in CSE and DSE.
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students become aware of organization al culture and learn how to show professional excellence to a great extent. This learning helps them when they finally enter into practical field.
like- absence of equal employment benefits, absence of diverse workforce, absence of staff planning, lack of forecasting of internal and external recruitment, absence of inter organizational communication and interpersonal skill etc. So the purpose of my report to view and analyze the Human Resources Process of DSE, identify problems areas and recommend the ways to overcome.
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1.5.1 Broad Objective Objective of this report is to evaluate the activities of overall Human Resources Process of the Dhaka Stock Exchange Ltd and derive findings concentrating on problem areas. 1.5.2 Specific objectives Following specific objectives are identified: To study and analyze Dhaka Stock Exchange Ltd., with special emphasis on its background, functional environment, & HRM. Overview of the organization and their HR Policies and Procedures. How does the organization monitor the implementation. To study and analyze the current recruitment and selection process. Detail analysis of sources of potential candidates. Derive lessons learnt during the whole process. To have an overall idea by linking the theoretical concept of hiring Process with compensation strategy To focus on the significance of doing the compensation strategy during the hiring Process in the organization To find problem areas and recommend suggestions to overcome.
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The study provides necessary information regarding the difficulties faced by the organization.
1.7 Methodology
The report is prepared on the basis of overall performance of DSE. Different record, statement, Annual report has helped me preparing this report. The subject material of this report is on primary and secondary sources of data and information.
Sources of information
Primary source Observation of various departments. Interview of different employees. Secondary source Annual report of DSE. Extensive literature search on the basis of document and publication from DSE library. Journal & publication from different local and International organization DSE Website: www.dsebd.org
1.8
Limitations
Its a great pleasure for me to work on this report. During preparing my report I will learn lots of new things, which are much related to my report materials. It helps us to fulfill my study, which is really needed for me. But still I face some problem for my report. Due to the time constraints its really hard for us to collect all the data. Time is so limited and I do not have enough time to collect the data. Still I have tried our best to add more authentic information as much as possible for us. I think that my report will be helpful for those people who are interested to know about the compensation process.
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I have also information limitations because the people I have interviewed they did not disclose information as I needed. Moreover, they skipped much information technically likeinternal and external recruitment budgeting process. 1. Improper combination among various departments. 2. Due to the lack of time I could not acquire in depth knowledge of the activities of different department perfectly and clearly. 3. Adequate book, publication and journals were not available. 4. Insufficiency of necessary information and data.
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CHAPTER-2
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2.2 Preamble
The Dhaka Stock Exchange is the prime bourse of the country. Through its nonstop highly fault-tolerate screen based automated trading system the exchange has been offering facilities for transparent and highly efficient provisions for secondary market activities of securities. The management of the Exchange is vested with the Board of Directors comprising 12 members elected from the shareholders of DSE, 12 non-elected independent Directors representing different Institutions, Chambers and Professional bodies and the CEO of the Exchange A team of qualified executives runs the overall operations of the exchange. The bourse at present offers trading facilities for 401 securities worth Tk. 10110.30 billion-market capitalization, which contributes 18.20% of the total GDP of the country. With a nationwide coverage through branches of brokers and dealer, DSE espouse shared vision of Bangladesh business all over the country. The exchange maintains the lead in providing a launching pad for mobilizing saving of Bangladesh living home and abroad. Besides Bangladesh, nonresident & foreign institutional investors have been showing growing interest in this market over the years.
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Should Have An Independent Stock Exchange. It Was Suggested That Dhaka Narayanganj Chamber of Commerce & Industry Should Approach Its Members For Parchase Of Membership Cards At RS.2000 Each For The Proposed Stock Exchange. The Location Of The Exchange It Was Thought Should Be Either Dhaka Narayanganj Or Chittagong. An Organizing Committee Was Appointed Consisting Of Leading Commercial And Industrial Personalities Of The Province With Mr. Mehdi Ispahani As The Convener In Order To Organize The Exchange. The Chamber Informed Its Members And Members Of Its Affiliated Associations Of The Proceedings Of The Above Meeting, Requesting Them To Intimate Whether They Were Interested In Joining The Proposed Stock Exchange. This Was Followed By A Meeting, At The Chamber Of About 100 Persons Interested In The Formation Of The Exchange On 07.07.1953. The Meeting Invited 8 Gentleman To Become Promoters Of The Exchange With Mr. M Mehdi Ispahani As The Convener And Authorized Them To Draw Up The Memorandum And Article Of Association Of The Exchange And Proceed To Obtain Register Under The Companies Act.1913. The Other 7 Promoters Of The Exchange Were Mr. J M Addision-Scott, Mr. Mhodammed Hanif, Mr. A C Jain, Mr. A K Khan, Mr M Shabbir Ahmed And Mr. Sakhawat Hossin. It Was Also Decided That Membership Fee Was To Be Rs.2000 And Subscription Rate At 15 Per Month. The Exchange Was To Consist Of Not More Than 150 Members. A Meeting Of The Promoters Was Held At The Chamber On 03.09.1953 When It Was Decided To Appoint Orr Dignam & Co., Solicitors To Draw Up The Memorandum And Articles Of Association Of The Stock Exchange Based On The Rules Of Stock Exchange Existing In Other Countries And Taking Into Account Local Conditions. The 8 Promoters Incorporated The Formation As The East Pakistan Stock Exchange Association Ltd. On 28.04.1954. As Public Company. On 23.06.1962 The Name Was Revised To East Pakistan Stock Exchange Ltd. Again On 14.05.1964 The Name Of East Pakistan Stock Exchange Limited Was Changed To "Dhaka Stock Exchange Ltd."
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At The Time Of Incorporation The Authorized Capital Of The Exchange Was Rs. 300000 Divided Into 150 Shares. Of Rs. 2000 each and by an extra ordinary general meeting adopted at the extra ordinary general meeting held on 22.02.1964 the authorized capital of the exchange was increased to Tk. 500000 divided into 250 shares of Tk. 2000 each. The paid up capital of the exchange now stoods at Tk.460000 dividend into 230 shares of Tk. 2000 each. However 35 shares out of 230 shares were issued at TK. 80,00,000 only per share of TK. 2000 with a premium of TK. 79,98,000. Although incorporated in 1954, the formal trading was started in 1956 at Narayanganj after obtaining the certificates of commencement of business. But in 1958 it was shifted to Dhaka and started functioning at the Narayangonj chamber building in Motijheel C/A. On 1.10.1957 the stock exchange purchase a land measuring 8.75 Kattah at 9F Motijheel C/A from the Government and shifted the stock Exchange to its own location in 1959.
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square feet. DSE signed a contract with GBB Limited on February 28, 2007 for the first phase construction work of 14 storied with 3-basement DSE Tower building for Taka 89.97 crore. The contractor, GBB Limited, has started the construction work in the month of April 2007 and the construction work is in progress and is expected to be completed by 2010.The basement work of the DSE Tower has already been completed. By end of December 2008, 15% of the work is reported to have been completed as against target progress of 39.79% as per original program.
2.3.2 Vision
Regulating the market structure through proper rules and strict compliance by members. Expansion of DSE trading network to cover 504 thanas. Introduce Book Building system in Bangladesh capital market. Introducing derivative market Continuous promotion of stock investment throughout the country. Create opportunity to cross border trading with SAFE countries.
2.3.4 Objectives
Develop a strong platform for entrepreneurs for raising capital; Provide an investment opportunity for small and large investors; Develop a transparent market ensuring investor's interest; Provide a fully automated trading system with most modern amenities to ensure: quick, easy, accurate transactions and easily accessible to all; Attract non-resident Bangladeshis to invest in Bangladesh stock market;
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Attract foreign institutional investors to invest in Bangladesh; Collect, preserve, disseminate data and information on stock exchange;
2.6 Membership
The DSE Currently has 238 members who are the shareholders of the public Limited Company. Membership is open to foreigners. The Securities and Exchange Commission
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(SEC) licenses members for conducting trading as Stock Brokers, Dealer or both all Brokerage house have been corporatized in 2006.
The DSE Board comprises of 25 members of whom 12 are elected through direct from the 235 shareholders of DSE. The remaining 13 Board Members are Ex-Officio. They include 12 members representing distinguished personalities from different key economic and social arena of the country. The CEO of the Exchange is also a Director of the Board. One councilor to be nominated by the ministry of Finance not below the rank and status of Joint Secretary. One councilor to be nominated by the Bangladesh Bank from amongst its officers of or above the rank of General Manager. President of Institute of Chartered Accountants of Bangladesh, Ex-officio Member. President of Federation of Bangladesh Chamber of Commerce and Industry, Exofficio Member. President of Metropolitan Chamber of Commerce and Industry, Ex-officio Member. President of Dhaka Chamber of Commerce and Industry, Ex-officio Member. One councilor to be nominate by the Ministry of Commerce not below the rank and status of joint Secretary as member. One councilor to be nominate by the Ministry of Law not below the rank and status of joint Secretary as member.
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One councilor to be nominate by the Ministry of Industry not below the rank and status of joint Secretary as member. President of Supreme Court Bar Association, Ex-officio Member. Head of the Department Finance /Economics, Dhaka
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Office Address
Room No - 508 , Stock Exchange Building , 9/F , Motijheel C.A., Dhaka-1000 Ph: 9551960, 9559925, PABX : 9564601, 7175705-9 Ext. 508
Residence Address
Navana Villa Flat No. 201, Plot No. 10 Road No. 118 Gulshan, Dhaka Phone: 8823500, 9895837 Mobile: 01819-219396
Photography
Suite No. 1002-3 9/E, Motijheel C/A, Dhaka-1000 Phone: 9561070, 9561232, 9564959, 9569302 Fax: 9562254, 9564991
Apartment 2B, House No.16, Road No. 01, Baridhara Diplomatic Zone, Dhaka-1212 Res: 8859055 Mobile : 01711-546802
Room No: 905, DSE Annex Building (8th Floor) 9/E, Motijheel C/A, Dhaka-1000 Phone: 7175716, 9570985, 7166096, 7170993-4 PABX :9564601, 7175705-9 Ext- 429
Room No - 618, 619, 709, 715 Stock Exchange Building 9/F, Motijheel C.A. Dhaka-1000 Phone: 9551815, 9564573,9568417 PABX : 9564601,7175705-09 Ext-715/709
Room no. 704 (6th Floor), Modhumita Building, 158-160,Motijheel C.A., Dhaka-1000. Ph: 9557677 PABX : 9557677, 7168345
Road No. 104, House No. 5/F Flat No. A-4/S Gulshan -2, Dhaka - 1212 Phone: 8814385 Mobile: 0175212755
Room no. 620 , 621 & 635 Stock Exchange Building 9/E, Motijheel C/A, Dhaka-1000 Mobile: 01713033829 Phone:9553321, 9563287,9554712 PABX :9564601, 7175705-09, Ext:620, 621, 635
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House No. - 8A, Road No. - 50, Gulshan-2, Dhaka - 1212 Phone: 9887423, 9892714 Fax: 9894877
House No. 14 (5th Floor), Road No.- 140, Gulshan - 01, Dhaka - 1212 Res: 8855098 Mobile: 01711-567122
Suite No. - 603 (5th Floor), Modhumita Building, 158-160 Motijheel C/A, Dhaka-1000 Phone: 7174368, 7174451, 9561993
116, Bashir Uddin Road, Kalabagan, Dhanmondi, Dhaka-1205 Res: 9115571, 8144836 Mobile: 01711-542131
Room No. 322 9/E, Motijheel C/A, Dhaka-l000 Phone: 9561868, 9570496, 7174256, 7174315, 9556792 Fax: 9555384, 9562207
4/404, Eastern Point 8-9, Shantinagar, Dhaka Res: 8354163 Mobile: 01819-213180 Email: lbsldhk@accesstel.net nasir@lbsbd.com
Room No - 901 (8ht floor) 9/E, Motijheel C/A, Dhaka-l000 Phone: 9666927,9667011 PABX: 9564601 Ext-524
Room No - 313 (2nd Floor) Stock Exchange Building 9/F, Motijheel C/A, Dhaka-l000 Phone: 9552390,9561667 PABX: 9564601 Ext-313
Room No - 213 Stock Exchange Building 9/F, Motijheel C/A, Dhaka-l000 Phone: 9551403 PABX:9564601,7175705-09 Ext213
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Finance Division General Accounts Clearing Accounts & Exchange DP Special Clearing DSE FSDP
Administration Division Board Affairs Membership Affairs HRM, Administration & Training Protocol, Logistics & Maintenance Publication & Public Relations Resources & Development &Library Security Section Reception Legal
Operation Division & CEOs Secretariat Surveillance Surveillance Internal Control & Audit Monitoring, Investigation & Legal Affairs PS of CEO Listing Affairs & Market operation
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Web Dev & Int. trading Network Local Com Network Distance Com Application Support MIS & Development Hardware Support Back Office Dev.
DSE FSDP
Monitoring,
Investigation & Legal Affairs
Research developments
&Information
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CHAPTER-3
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3.1 Capital Market Sources from which long-term capital is raised for the setting up and sustained growth of companies. The Stock Exchange is a part of the capital market, not only because it readily provides money for new or existing ventures, but also because it helps investors to trade in their shares and maintains the liquidity of investment. Investment in further public and rights issues, convertible and non-convertible debentures, there the resources they need. A market in which long-term capital is raised by industry and commerce, the government and local authorities. The money comes from private investors, insurance companies, pension funds and bank and is usually arranged by issuing houses and merchant banks. Stock exchanges are also part of the capital marketing that they provide a market for the shares and loan stocks that represent the capital once it has been raised. It is the presence and sophistication of their capital markets that distinguishes the industrial countries from the developing countries, in that this facility for raising industrial and commercial capital is either absent or rudimentary in the letter.
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Securities market as a vital sector of the national economy continues to be very important particularly in the backdrop of keen competition and continuous globalisation process. We play a crucially important role in creating employment through investment.
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visited two major cities in Australia in April 2008. Meanwhile, DSE arranged a roundtable titled global financial crisis and its impact on financial markets in Bangladesh at Sonargaon Hotel in Dhaka on November 15,2008. Securities and Exchange Commission Chairman, Mr Faruq Ahmad Siddiqi was the chief guest in the programme while Deputy Governor of Bangladesh Bank Mr Ziaul Hasan Siddiqui was the special guest. DSE Senior Vice-president Mr Saiful Islam chaired. Mr MA Baqui Khalily, Professor of Department of Finance and Chairman of Centre for Corporate Governance and Finance Studies of Dhaka University presented a keynote paper. DSE also arranged the Second Conference of South Asian Federation of Exchanges (SAFE) during January 31 and February 01 in 2008 in Dhaka. The then Finance and Planning Adviser, Dr. A.B Mirza Md. Azizul Islam inaugurated the 2-day conference. While inaugurating the programme the Finance Adviser emphasised on joint and coordinated effort for strong and vibrant securities market. Top management officials including the CEOs of member exchanges from the SAARC regions participated the conference.
By monitoring price and volume movements (volatility) as well as by detecting potential market abuses at a nascent stage, with a view to minimizing the ability of the market participants to influence the price of the scrip/scrips in the absence of any meaningful information.
Market Abuse is a broad term, which includes abnormal price/volume movement, artificial transactions, false or misleading impressions, insider trading, etc. In order to detect aberrant behavior/ movement, it is necessary to know the normal market behavior - The department carries out investigation, if necessary, based on the preliminary examination/analysis and suitable actions are taken against members involved based on the investigation.
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All the instruments traded in the market come under the Surveillance umbrella of DSE. Surveillance activities at the Exchange are divided broadly into two major segments
Price Monitoring: Price monitoring is manly related to the price movement/ abnormal fluctuation in prices or volumes etc.
Position Monitoring: The position monitoring relates mainly to abnormal positions of members, etc. in order to manage default risk.
3.7.1 Price Monitoring The functioning of the Price Monitoring is broadly divided into following activities 3.7.1.1 Investigations Conducting in-depth investigations based on preliminary enquiries/analysis made into trading of the scrip. In case of irregularities observed, necessary actions are initiated or investigation case forwarded to SEC, if necessary through the CEO.
Warning to Members The department may issue verbal/ written warning to member/s when a market irregularity in the scrip is suspected.
Imposition of penalty/ suspension The department, through the CEO, imposes penalty or suspend the member/s who are involved in market irregularities, based on the input/ evidence available from investigation report.
Liaising with Compliance Officers of companies to obtain comments of the company on various price sensitive corporate news items appearing in selected News Papers.
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Comments received from the companies are disseminated to the market by way of online news bulletin.
Investigations based on rumor verifications are carried out, if required, to detect cases of suspected insider trading.
3.7.2 Position Monitoring The Surveillance Department closely monitors outstanding exposure of members on a daily basis. For this purpose, it observes various off-line and on-line market monitoring reports. The reports are scrutinized to ascertain whether there is excessive purchase or sale position build up compared to the normal business of the member, whether there are concentrated purchases or sales, whether the purchases have been made by inactive or financially weak members and even the quality of scrips is considered to assess the quality of exposure.
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activities approximately from 480 remote locations of 14 districts. Two DSE Branch offices were running very smoothly at Chittagong and Sylhet. We are in progress to establish two new DSE branch offices at Khulna and Rajshahi as well as DSE network branches in Dhaka. Besides providing online trade data from MDS (Market data server) to DSE official website, Mobile phones, ETV, etc, DSE is in process to provide DSE online trade data to many renowned national/international companies like Bloomberg, Mubasher Trades and to some of the online edition of the national print media.
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financial links, and also psychological contagions made it spread at the same time worldwide and to many financial and economic areas, including financial markets (stock exchanges and derivative markets notably) where it resulted into a market crash, various equity funds and hedge funds that went short of cash and had to get rid of assets, insurance activities and pension funds, facing a receding asset portfolio value to cover their commitments, incidences on public finance due to the bailout actions, increased volatility for Forex (e.g., currencies of Iceland, various Eastern Europe and Latin American countries). The Economic crisis of 2008 ensued also in various countries and inflicted various industries, as the financial crisis was a factor for making borrowing and equity rising harder for them. By September 2008, the financial crisis entered into an acute phase marked by bankruptcy of Lehman Brothers and failures of prominent American banks and efforts by the American governments to rescue distressed financial institutions, by passing the Emergency Economic Stabilization Act of 2008. Iceland almost claimed to go bankrupt. Many financial institutions in Europe also faced the liquidity problem that they needed to raise their capital adequacy ratio. European government infused capital into major banks to keep them afloat. As the crisis deepened, stock markets fell worldwide, and global financial regulators attempted to coordinate efforts to contain the crisis. The US government composed a $700 billion plan to purchase nonperforming collaterals and assets. However, the plan was initially vetoed by the US congress because some members rejected the idea that the tax payers money be used to bail out the Wall Street investment bankers. The stock market plunged as a result; the US Congress amended the $700 billion bail out plan and passed the legislation. The market sentiment continued to deteriorate and the global financial system almost collapsed. While the market turned extremely pessimistic, the British government launched a 500 billion pound bail out plan aimed at injecting capital into the financial system. The British government nationalized most of the financial institutions in trouble. Many European governments followed suit, as well as the US government. Stock markets appeared to have stabilized by the end of October 2008. The year 2008 was perhaps one of the worst years after the great depression of 1930s for a global equity investor. In the first part of the year, the global credit crisis took its toll and
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equity prices had started to fall. In the later months, when it was evident that the world was heading for a recession, stock prices started to plummet like a sack of potatoes. According to the Economist, the UK-based prestigious magazine, American mutual-fund assets have declined by USD 2.4tn - a fifth of their value - since the start of 2008; in Britain, the drop is more than a quarter, or almost BP 130bn (USD 195bn). The value of global stock markets has shrunk by USD 30tn, or roughly half. These figures put the losses on credit-related securities, where the financial crisis bega n, into the shade. Indeed, it was a bad year for equity investors.
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these stock prices started to go up, which was reflected in the rise of the index. The role of regulation cannot be ignored here. It was expected that reforms would take place in the nonbank financial institutions, and the insurance sector, which spurred the sharp rise in prices in these sectors. The banks were already expected to give heavy stock dividends as a requirement to be compliant with Basel II. All these factors meant that the index was on the up. The second half of the year was a time of decline. True that the stock and cash dividends were adjusted, however, the correction in the stock prices was much larger. There is little dispute that the market had been overheated in the first six months, and a correction was long overdue. At the same time, some other factors also started to concern the retail investors. Retail investors started to worry about the foreign portfolio investors pulling out their money as they did in Russia, India, China, and many other countries. The news coming from the developed and the developing world about the ramifications of the credit crunch and the overall downturn in the global economy exacerbated their fears. At the same time, the uncertainty about the political situation started to put off investors in investing money in the bourses. Also, the second half of the year celebrated two major religious festivals, which is generally a slag time for investors. All these factors culminated into the down turn in the second of the year. However, in the last month of the year, we find retail investors again finding interest to invest. A large part of this renewed interest can be attributed to the prudent actions of our regulators and the media. They rightly stressed that the current credit crunch in the global economy will not impact us greatly as we are not that leverage, and complex instruments do not exist here. They also rightly stressed that; the global recession will not affect us in a large way, as our economy is largely insulated from the negative aspects of the downturn. While the global stock markets have taken a beating, the Dhaka and Chittagong stock exchanges have performed reasonably well. According to Bloomberg, New York- based information Services Company; the DSE was the fourth best performing exchange in the world on a currency-adjusted basis in 2008. According to the 23 indices, the Dhaka Stock Exchange has performed the best in comparison with the other important stock exchanges.
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countrys prime bourse DSE whopped to Tk 931.03 billion on June 30, 2008 as against Tk. 475.86 billion of 30th June 2007,showing a 95.66 per cent increase. Market
Capitalisation/GDP ratio as on June 30, 2008, which determines the size of a securities market compared with the total gross
domestic product in an economy in a given period of time, was still low when compared with the same with other countries. On June 30, 2008, the market capitalisation to GDP ratio rose to 19.92
____________________________________
per cent against 10.18 per cent on June 2007. The Month-End movement of market capitalisation is shown in the above graph.
The
graph
indicates
that
market
capitalisation of listed securities of DSE increased significantly to Tk 931.03 billion till June 30, 2008 from Tk 475.86 billion of the corresponding period of the previous fiscal year showing a Tk 455.17 billion rise. The market capitalization continued to rise upto December, 2008 reflecting the investors growing enthusiasm on the securities capitalization stood at Tk 1043.80 billion on December 30,2008. market. The market
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whopping 229.93 per cent rise. A total of 3,761.11 million shares were
transacted in the period of 2007-08 from a total volume of 1982.96 million shares in the year 2006-2007 recording a 89.68 per cent rise. In 2005-06, the volume was 592.76 million.
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A Category Companies Companies which are regular in holding the Annual General Meetings and have declared dividend at the rate of 10 percent or more in a Calendar year. (Mutual Funds, Debentures & Bond are being traded in this Category) B Category Companies: Companies which are regular in holding the Annual General Meetings but have failed to declare dividend at least at the rate of 10 percent in a Calendar year. Z Category Companies: Companies which have failed to hold the Annual General Meetings or failed to declare any dividend or which are not in operation continuously for more than six months or whose accumulated loss after adjustment of revenue reserve, if any, is negative and exceeded its paid up capital. G Category Companies: Green field Companies: Newly listed green field companies shall be grouped under this category.
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N Category Companies: All newly listed companies except Greenfield Companies will be placed in this category and their settlement system would be like B-Category Companies.
BANK SL 1 ABBANK (AB BANK LIMITED) 2 ALARABANK (AL-ARAFAH ISLAMI BANK) 3 BANKASIA (BANK ASIA LTD. ) BAYLEASING( BAY LEASING & 4 INVESTMENT LIMITED ) BDFINANCE (BANGLADES FINANCE AND 5 INVESTMENT CO.LTD. ) BIFC( BANGLADESH INDUSTRIAL FIN. 6 CO. LTD. ) 7 BRACBANK( BRAC BANK LTD. ) 8 CITYBANK( CITY BANK ) 9 DHAKABANK( DHAKA BANK ) 10 DUTCHBANGL( DUTCH-BANGLA BANK ) 11 EBL( EASTERN BANK ) EXIMBANK( EXPORT IMPORT (EXIM) 12 BANK OF BANGLADESH ) FIDELASSET( FIDELITY ASSETS & 13 SECURITIES COMPANY LTD ) FIRSTSBANK( FIRST SECURITY ISLAMI 14 BANK LIMITED ) FLEASEINT( 1ST LEASE 15 INTERNATIONAL ) 16 ICBIBANK( ICB ISLAMIC BANK LIMITED ) 17 IDLC( IDLC FINANCE LTD. ) 18 IFIC( IFIC BANK ) ILFSL( INTERNATIONAL LEASING & 19 FINANCIAL SERV.L ) IPDC( INDUSTRIAL PROM. & DEV. CO. OF 20 BD LTD. ) 21 ISLAMIBANK( ISLAMI BANK ) ISLAMICFIN( ISLAMIC FINANCE & 22 INVESTMENT LTD. ) 23 JAMUNABANK( JAMUNA BANK LTD. ) LANKABAFIN( LANKABANGLA FINANCE 24 LTD. ) MERCANBANK( MERCANTILE BANK 25 LTD. )
165 CTGVEG( CHITTAGONG VEGETABLE ) 166 DHAKAFISH( DHAKA FISHERIES ) 167 FINEFOODS( FINE FOODS LIMITED ) 168 169 170 171 FUWANGFOOD( FU WANG FOOD ) GACHIHATA( GACHIHATA AQUACULTURE ) GBJVFOOD( GERMAN BANGLA FOODS ) GEMINISEA( GEMINI SEA FOOD )
172 GULFOODS( GULF FOODS ) 173 HILLPLANT( HILL PLANTATION ) 174 MEGCONMILK( MEGHNA CONDENSED MILK ) 175 MEGHNAPET( MEGHNA PET INDUSTRIES ) 176 MEGHNASHRM( MEGHNA SHRIMP ) 177 MODERNIND( MODERN INDUSTRIES ) 178 MONAFOOD( MONA FOOD )
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26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48
MIDASFIN( MIDAS FINANCING LTD. ) MTBL( MUTUAL TRUST BANK LTD. ) NBL( NBL ) NCCBANK( NCCBL ) ONEBANKLTD( ONE BANK LIMITED ) PHOENIXFIN( PHOENIX FINANCE AND INVESTMENTS LTD. ) PLFSL( PEOPLES LEASING AND FIN. SERVICES LTD. ) PREMIERBAN( THE PREMIER BANK LTD. ) PREMIERLEA( PREMIER LEASING & FINANCE LIMITED ) PRIMEBANK( PRIME BANK ) PRIMEFIN( PRIME FINANCE & INVESTMENT LTD. ) PUBALIBANK( PUBALI BANK ) RUPALIBANK( RUPALI BANK ) SHAHJABANK( SHAHJALAL ISLAMI BANK LTD. ) SOCIALINV( SOCIAL INVESTMENT BANK ) SOUTHEASTB( SOUTHEAST BANK ) STANDBANKL( STANDARD BANK LIMITED ) TRUSTBANK( TRUST BANK LIMITED ) UCBL( UCBL ) ULC( UNITED LEASING ) UNIONCAP( UNION CAPITAL LIMITED ) UTTARABANK( UTTARA BANK ) UTTARAFIN( UTTARA FINANCE ) FINIX FINANCE
NTC( NATIONAL TEA ) RAHIMAFOOD( RAHIMA FOOD ) RANGAFOOD( RANGAMATI FOOD ) RASPIT( RASPIT INC.(BD.) ) SHYAMPSUG( SHAYMPUR SUGAR )
184 TULIPDAIRY( TULIP DAIRY & FOOD ) 185 YOUSUFLOUR( YOUSUF FLOUR ) 186 ZEALBANGLA( ZEAL BANGLA SUGAR )
TANNERY INDUSTRIES APEXADELFT( APEX ADELCHI FOOTWEAR 187 LTD. ) 188 APEXTANRY( APEX TANNERY ) 189 BATASHOE( BATA SHOE ) SL 190 EXCELSHOE( EXCELSIORSHOES ) 191 LEGACYFOOT( LEGACY FOOTWEAR ) 192 LEXCO( LEXCO ) 193 PHENIXLETH( PHOENIX LEATHER ) 194 SAMATALETH( SAMATA LEATHER ) PHARMACEUTICALS & CHEMICALS SL 195 ACI( ACI LIMITED. ) 196 ACIFORMULA( ACI FORMULATIONS LIMITED ) 197 ALAMINCHEM( AL-AMIN CHEMICALS ) 198 AMBEEPHA( AMBEE PHARMA ) 199 BANGLAPRO( BANGLA PROCESS ) 200 201 202 203 BCIL( BCIL ) BXPHARMA( BEXIMCO PHARMA ) BXSYNTH( BEXIMCO SYNTHETICS ) GLAXOSMITH( GLAXO SMITHKLINE )
CEMENT SL 51 ARAMITCEM( ARAMIT CEMENT ) 52 CONFIDCEM( CONFIDENCE CEMENT ) HEIDELBCEM( HEIDELBERG CEMENT 53 BD. ) LAFSURCEML( LAFARGE SURMA 54 CEMENT LTD. ) 55 MEGHNACEM( MEGHNA CEMENT ) 56 MODERNCEM( MODERN CEMENT ) 57 NILOYCEM( NILOY CEMENT ) 58 PADMACEM( PADMA CEMENT ) SL ENGINEERING
204 IBNSINA( THE IBN SINA ) 205 206 207 208 IMAMBUTTON( IMAM BUTTON ) KEYACOSMET( KEYA COSMETICS ) KEYADETERG( KEYA DETERGENT ) KOHINOOR( KOHINOOR CHEMICALS )
209 LIBRAINFU( LIBRA INFUSIONS LIMITED ) 210 ORIONINFU( ORION INFUSION ) 211 PERFUMCHM( PERFUME CHEMICALS )
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59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81
AFTABAUTO( AFTAB AUTOMOBILES ) ANWARGALV( ANWAR GALVANIZING ) ATLASBANG( ATLAS BANGLADESH ) AZIZPIPES( AZIZ PIPES ) BDAUTOCA( BD.AUTOCARS ) BDLAMPS( BANGLADESH LAMPS ) BDTHAI( BD.THAI ALUMINIUM ) BEMCO( BEMCO ) BSRMSTEEL( BSRM STEELS LIMITED ) ECABLES( EASTERN CABLES ) GOLDENSON( GOLDEN SON LTD. )
PETROSYNTH( PETRO SYNTHETIC ) PHARMACO( PHARMACO INTERNATIONAL ) PHARMAID( PHARMA AIDS ) RAHMANCHEM( RAHMAN CHEMICALS ) RECKITTBEN( RECKITT BENCKISER(BD.)LTD. ) RENATA( RENATA LTD. ) SQURPHARMA( SQUARE PHARMACEUTICALS 218 LTD. ) 219 TBL( THERAPEUTICS ) 220 WATACHEM( WATA CHEMICALS ) SL
INVESTMENT 1STBSRS( 1ST BANGLADESH SHILPA RIN KAY&QUE( KAY AND QUE ) 221 SANGSTHA M.F. ) METALEXCR( METALEX CORPORATION ) 222 1STICB( 1ST ICB M.F. ) 1STPRIMFMF( PRIME FINANCE FIRST MUTUAL MONNOJTX( MONNO JUTEX ) 223 FUND ) MONNOSTAF( MONNO JUTE STAFFLERS ) 224 2NDICB( 2ND ICB M.F. ) NPOLYMAR( NATIONAL POLYMER ) 225 3RDICB( 3RD ICB M.F. ) NTLTUBES( NATIONAL TUBES ) 226 4THICB( 4TH ICB M.F. ) OLYMPIC( OLYMPIC INDUSTRIES ) 227 5THICB( 5TH ICB M.F. ) QSMDRYCELL( QUASEM DRYCELLS ) 228 6THICB( 6TH ICB M.F. ) RANFOUNDRY( RANGPUR FOUNDRY ) 229 7THICB( 7TH ICB M.F. ) RENWICKJA( RENWICK JAJNESWAR ) 230 8THICB( 8TH ICB M.F. ) SALAMCRST( S. ALAM COLD ROLLED STEELS LTD. ) 231 AIMS1STMF( AIMS 1ST M.F. ) SINGERBD( SINGER BANGLADESH ) 232 GRAMEEN1( GRAMEEN MUTUAL FUND ONE ) 233 GRAMEENS2( GRAMEEN ONE : SCHEME TWO ) 234 ICB( ICB ) ICB1STNRB( ICB AMCL 1ST NRB MUTUAL 235 FUND ) ICB2NDNRB( ICB AMCL 2ND NRB MUTUAL 236 FUND ) 237 ICBAMCL1ST( ICB AMCL 1ST M.F. ) ICBISLAMIC( ICB AMCL ISLAMIC MUTUAL 238 FUND ) JUTE
SL
BDWELDING( BD. WELDING 83 ELECTRODES ) 84 BOC( BOC BANGLADESH ) DESCO( DHAKA ELECTRIC SUPPLY 85 COMPANY LTD. ) 86 EASTRNLUB( EASTERN LUBRICANTS ) JAMUNAOIL( JAMUNA OIL COMPANY 87 LIMITED ) MPETROLEUM( MEGHNA PETROLEUM 88 LIMITED ) 89 PADMAOIL( PADMA OIL CO. ) POWERGRID( POWER GRID COMPANY 90 OF BANGLADESH LTD. ) SUMITPOWER( SUMMIT POWER 91 LIMITED ) 92 TITASGAS( TITAS GAS TRANSMISSION &
SL
239 JUTESPINN( JUTE SPINNERS ) 240 NORTHERN( NORTHERN JUTE ) 241 SALEHCARPT( SALEH CARPET ) 242 SONALIANSH( SONALI AANSH )
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DIST. CO. LTD. ) SL 93 94 95 96 97 98 99 100 SL SL 243 PAPER & PRINTING AZADIPRIN( AZADI PRINTERS ) 244 HAKKANIPUL( HAKKANI PULP & PAPER ) 245 MAQENTER( MAQ ENTERPRISES ) 246 MAQPAPER( MAQ PAPER ) 247 MONOSPOOL( B.MONOSPOOL PAPER ) 248 PADMAPRINT( PADMA PRINTERS ) 249 PAPERPROC( PAPER PROCESSING ) SL SONALIPAPR( SONALI PAPER ) 250 251 TEXTILE 252 253 254 255 256 IT SECTOR AGNISYSL( AGNI SYSTEMS LTD. ) BDCOM( BDCOM ONLINE LTD. ) BDONLINE( BANGLADESH ONLINE ) DAFODILCOM( DAFFODIL COMPUTERS LTD. ) INTECH( IN TECH ONLINE LTD. ) ISNLTD( INFORMATION SERVICES NETWORK ) RASPITDATA( RASPIT DATA MANAGEMENT ) SERVICES & REAL ESTATE BDHOTELS( BANGLADESH HOTELS ) BDSERVICE( BANGLADESH SERVICES ) DBH( DELTA BRAC HOUSING FINANCE CORP. LTD. ) EHL( EASTERN HOUSING ) NHFIL( NATIONAL HOUSING FIN. AND INV. LTD. ) SAMORITA( SAMORITA HOSPITAL ) SAPORTL( SUMMIT ALLIANCE PORT LIMITED )
101 AL-HAJTEX( AL-HAJ TEXTILE ) 102 ALLTEX( ALLTEX IND. LTD. ) 103 104 105 106 107 108 109 110 111 112 113 114 115 116 ANLIMAYARN( ANLIMA YARN ) APEXSPINN( APEX SPINNING. ) APEXWEAV( APEX WEAVING ) ARBEETEX( ARBEE TEXTILE ) ASHRAFTEX( ASHRAF TEXTILE ) BDDYE( BD.DYEING ) BDZIPPER( BD. ZIPPER IND. ) BEXTEX( BEXTEX LTD. ) CHICTEX( CHIC TEX LTD. ) CMCKAMAL( CMC KAMAL ) DANDYDYE( DANDY DYEING ) DELTASPINN( DELTA SPINNERS LTD. ) DSHGARME( DESH GARMANTS ) DULAMIACOT( DULAMIA COTTON )
CERAMICS SECTOR SL 257 BENGALFINE( BENGAL FINE CERAMIC ) 258 FUWANGCER( FU-WANG CERAMIC ) 259 MONNOCERA( MONNO CERAMIC ) SPCERAMICS( SHINEPUKUR CERAMICS 260 LIMITED ) 261 STANCERAM( STANDARD CERAMIC ) INSURANCE SL 262 AGRANINS( AGRANI INSURANCE CO. LTD. ) 263 ASIAINS( ASIA INSURANCE LIMITED ) ASIAPACINS( ASIA PACIFIC GENERAL 264 INSURANCE CO. LTD. ) 265 BGIC( BGIC ) 266 CENTRALINS( CENTRAL INSURANCE ) CITYGENINS( CITY GENERAL INSURANCE CO. 267 LTD. ) 268 269 270 271 CONTININS( CONTINENTAL INSURANCE LTD. ) DELTALIFE( DELTA LIFE INSURANCE ) EASTERNINS( EASTERN INSURANCE ) EASTLAND( EASTLAND INSURANCE ) FAREASTLIF( FAREAST ISLAMI LIFE 272 INSURANCE CO. LTD. ) 273 FEDERALINS( FEDERAL INSURANCE ) 274 GLOBALINS( GLOBAL INSURANCE LTD. )
117 DYNAMICTEX( DYNAMIC TEXTILE ) 118 EAGLESTAR( EAGLE STAR TEXTILE ) 119 GMGIND( GMG IND. CORP. ) 120 HRTEX( H.R.TEXTILE ) MAKSONSPIN( MAKSONS SPINNING 121 MILLS LIMITED ) 122 METROSPIN( METRO SPINNING ) 123 MHOSSAIN( M. HOSSAIN GARMENTS ) 124 MITATEX( MITA TEXTILE ) 125 MITHUNKNIT( MITHUN KNITTING ) 126 MODERNDYE( MODERN DYEING ) 127 MONNOFABR( MONNO FABRICS )
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128 PRIMETEX( PRIME TEXTILE ) 129 QSMSILK( QUASEM SILK ) 130 QSMTEX( QUASEM TEXTILE ) 131 132 133 134 135 136 137 138 139 140 SL 141 142 143 144 145 146 147 148 149 150 151 152 153
275 GREENDELT( GREEN DELTA INSURANCE ) 276 JANATAINS( JANATA INSURANCE ) 277 KARNAPHULI( KARNAPHULI INSURANCE ) MEGHNALIFE( MEGHNA LIFE INSURANCE CO. RAHIMTEXT( RAHIM TEXTILE ) 278 LTD. ) MERCINS( MERCANTILE INSURANCE CO. SAFKOSPINN( SAFKO SPINNINGS ) 279 LTD. ) SAIHAMTEX( SAIHAM TEXTILE ) 280 NATLIFEINS( NATIONAL LIFE INSURANCE ) SAJIBKNIT( SAJIB KNITWEAR ) 281 NITOLINS( NITOL INSURANCE CO. LTD. ) NORTHRNINS( NORTHERN GENERAL SONARGAON( SONARGAON TEXTILES ) 282 INSURANCE COMPANY LTD. ) PARAMOUNT( PARAMOUNT INSURANCE SQUARETEXT( SQUARE TEXTILE ) 283 COMPANY LTD. ) SREEPURTEX( SREEPUR TEXTILE ) 284 PEOPLESINS( PEOPLES INSURANCE ) STYLECRAFT( STYLECRAFT LIMITED ) 285 PHENIXINS( PHOENIX INSURANCE ) TALLUSPIN( TALLU SPINNING ) 286 PIONEERINS( PIONEER INSURANCE ) POPULARLIF( POPULAR LIFE INSURANCE CO. TAMIJTEX( TAMIJUDDIN TEXTILE ) 287 LTD. ) 288 PRAGATIINS( PRAGATI INSURANCE ) MISCELLANEOUS ARAMIT( ARAMIT ) 289 PRAGATILIF( PRAGATI LIFE INSURANCE LTD. ) BDLUGGAGE( BANGLADESH LUGGAGE ) 290 PRIMEINSUR( PRIME INSURANCE ) BERGERPBL( BERGER PAINTS PRIMELIFE( PRIME ISLAMI LIFE INSURANCE BANGLADESH LTD. ) 291 LTD. ) PROGRESLIF( PROGRESSIVE LIFE BEXIMCO( BEXIMCO ) 292 INSURANCE CO. LTD. ) BSC( BSC ) 293 PURABIGEN( PURABI GEN. INSURANCE ) ENGINEER( THE ENGINEERS ) 294 RELIANCINS( RELIANCE INSURANCE ) REPUBLIC( REPUBLIC INSURANCE COMPANY GQBALLPEN( GQ BALL PEN ) 295 LIMITED ) HIMADRI( HIMADRI ) 296 RUPALIINS( RUPALI INSURANCE ) MIRACLEIND( MIRACLE IND. ) 297 SANDHANINS( SANDHANI LIFE INSURANCE ) SONARBAINS( SONAR BANGLA INSURANCE ROSEHEAVEN( ROSE HEAVEN BALL ) 298 LTD. ) STANDARINS( STANDARD INSURANCE SAVAREFR( SAVAR REFRACTORIES ) 299 LIMITED ) SINOBANGLA( SINOBANGLA TAKAFULINS( TAKAFUL ISLAMI INSURANCE INDUSTRIES ) 300 LIMITED ) USMANIAGL( USMANIA GLASS ) 301 UNITEDINS( UNITED INSURANCE )
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CHAPTER- 4 to 5
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CHAPTER-4
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Manager (1)
Executive (1)
Executive (1)
Executive (1)
Executive (1)
Office Asstt-1
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4.3.1 Recruitment
Being the first integrated Capital Market plant in the country DSE faced a great challenge in recruiting experienced and qualified people for the project, Based on the skill requirement, the senior care technical staffs are being recruited from abroad. They are having on overage 15 years experience of this operation and some of them having experience in commissioning green field project. Keeping in mind the commitment on the local employment and future stuff costs the company management is recruiting potential Bangladeshi people.
4.3.2 Selection
After successful recruitment an employee goes for medical test and salary negotiation. After that he/she is finally selected for DSE having completed necessary formalities.
4.3.4 Training
Dhaka Stock Exchange Ltd conducts a rigorous training to its employees. It includes basic trade trainings, advance training etc. Training is conducted both home and abroad. As the training is conducted both home and abroad it helps both the employee and organization. A
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well-trained employee is an asset to the organization and also employee can develop him/herself. DSE has taken a good number of steps to develop its employees.
4.3.4.1
Local Training
Local training can be both-Inside DSE and Outside DSE Induction/Orientation training Program falls under inside DSE training category. After joining, it is the responsibility of the HR to conduct induction /orientation training to the newly recruited personnel to provide a general introduction of the company. To prepare training plan, participant's list, and training schedule for induction training - HR department does all. Inside DSE training will cover Management training. Out side DSE training means to take part in training programs offered by different training institutions/universities on different subjects. DSE follow this type of training such are; Authorized Representative Training Compliance Training Member Training Training as per requirements of department Company Secretary Training Investors Awareness Training Management Development DSE Employee Training.
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4.3.5 Placement
Once candidate is finally selected he/she is placed to the concerned department for his/her actual job. It is normally decided earlier, for which post or vacancy the candidate is selected. Employee transfer is one of the important activities of Human Resources Division.
The employees of DSE ate even rewarded at the end of the year, cither increased, or appreciation arc given to employee
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4.3.7 Promotion:
An employee may be eligible for consideration of promotion to next higher grade when he completes a minimum 3 years service in his existing post and if he is found suitable for promotion subject to the availability of the post. Promotion from a lower post to higher post shall be based on seniority, fitness and performance subject to fulfillment of the specified qualification for the post. No employee shall have a claim to be promotes as a right by virtue of seniority only.
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Policies. DSE is very much committed to respecting and promoting human rights in its sphere of influence. This commitment has been included in our code of business conduct, which applies to the entire workforce. The group human resource policy states that the group excludes forced labor. There is no provision of child labor also.
Policies and program at local level. At the local level almost all the units have developed their own policy on human rights.
Relationship with Union. All business units have a specific policy or procedure on freedom of association and negotiation for DSE employees. Unions or some kind of collective agreement represents the majority of DSE work forces.
Use of Security Agents. To ensure security of employees the organization-employed security guards wherever is necessary. 21% of business units use armed security forces also.
4.3.11 Attendance
Employers need their employees to report to work regularly and on time. An employee who is constantly tardy or absent disrupts the workflow, burdens co-worker with extra tasks, lowers morale, and may affect the quality of products and services. One of the HR executive is maintain the attendance either employees are come timely or not. If not then he put on L for Late; if someone is absent then A for absent; if someone have leave then CL for casual leave. If someone has late regularly then the executive is issue a letter or note for much late by the sign of AGM of HR, which may causes employee evaluation.
4.3.12 Leave
Leave is earned by duty only and cannot be claimed as a matter of right. All applications of leave shall be addressed to the competent authority and shall be submitted through proper channel in a specified form. Competent authority may refuse or grant a leave for a stated period when applied for, revoke leave of any description and recall an employee before the expiry of his leave. An employee shall not proceed on leave on the basis of submission of
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application until it is sanctioned. Overstay of leave may attract punishment including dismissal from service. Various types of leave shall be admissible for an employee: a) Ordinary Leave Casual Leave, Medical leave, Earned Leave b) Extra-ordinary Leave- Maternity Leave, Study Leave, Transit Leave 4.3.12.1 Ordinary Leave: 1. Casual leave: - means period of absence for a short period granted to an employee who is unable to attend duty due to urgent private affairs, Casual leave may be granted to an employee up to a maximum of 15 days during a calendar year but not for a period exceeding 5 days at any one time. Casual leave shall not be accumulative and the unspent balance shall be lapsed on 31st December each year. Casual leave cannot be combined with other leave and cannot be taken in combination of joining time. 2. Earned Leave: - All regular and permanent employees are entitled to enjoy full pay at the rate of 1 day for every 12 days of the period spent on duty and the leave so earned shall be credited to his leave account and the maximum accumulation shall be 120 days. The period earned in excess of 120 days shall stand lapsed. The amount of earned leave at full pay that may be taken in one spell shall not exceed 30 days normally. The competent authority may, however, under special circumstances rise to any period subject to maximum of 120 days. The calendar year shall be the basis of earned leave. Normally earned leave is credited to an employee on completion of 1 (one) year service. However, leave may be granted to an employee after confirmation if he has not completed 1 (one) year service at the following rate.
2.1 Earns leave at the end of the calendar year shall be credited over the next year in the event the incumbent is refused to enjoy leave. The Head of Department shall submit earned
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leave plan at the beginning of each year. No leave shall be carried over to the next year if the incumbent fails to produce leave application refused by competent authority during the subject year. 2.2 The employee is entitled to en-cash 50% out of the accumulated earned leave by Surrendering 50% to the credit of the employer subject to: 1. He has been consecutively refused 3 times due to exigency of works. 2. He applies for encashment of 50% closing such refusal on prescribed leave application forms only. 3. Successive refusal should not be within the period of leave applied for and refused earlier. 3. Medical/Sick Leave a) Every employees shall be entitled to medical/sick leave with full wages for a total period of fourteen days in a year; such leave not availed of by any employee during a calendar year may be carried forward, but the total accumulation of such leave shall not exceed 28 (twenty-eight) days at any one time. b) Sick leave may be granted on medical grounds on the recommendation of register medical practitioner approved by the company. 4.3.12.2 Extra-ordinary leave: Leave without pay may be granted to an employee in special circumstances when no other leave is admissible. The duration of leave without pay shall be so regulated that the amount of total leave including other leave taken in consideration does not exceed maximum of 1 (one) year at one time. 1. Study leave- when the competent authority selects an employee for training in the country or abroad the entire period including travel time shall be treated on duly for all-purpose. 2. Maternity Leave- A female employee may be granted maternity leave (which is not debited against leave account) with basic pay only for a period of 12 (twelve) weeks before
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and 4 (four) weeks after date of confinement subject to the incumbent has at least 9 (nine) months continuous service immediately preceding the date of delivery. An employee is, however, entitled to enjoy maternity leave for a maximum of 4 (four) months during the whole service life. Leave on medical ground irrespective of the nature ordinary or extra-ordinary shall be granted only at the advice of designated medical officer of the Dhaka Stock Exchange. 3.Transit Leave- If an employee is transferred from one office to another (not within same city) he/she shall be allowed 2 days leave with full pay to cover journey with his household effects.
An employee obtaining overall ACR grade of Excellent may be allowed one special increments. An employee obtaining overall ACR grade of Very Good for consecutive two years may be allowed one special increment.
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An employee obtaining overall ACR grade of Average or below for consecutive two years shall be subject to withholding increment. If some one obtains below average grade for consecutive two years, warning will be issued and similar performance may cause termination from the job.
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The power of interpreting these Regulations, lies with the Council to the extent it does not violate the relevant laws of the land.
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Suspension as a Measure of Punishment An employee found guilty of misconduct but not dismissed or discharge in consideration of extenuating circumstance may be, as an alternative punishment, suspended for a period not exceeding seven days without pay as well as subsistence allowance. Procedure for Punishment: An Employee shall not be dismissed or discharged or otherwise punished unless: a) The allegations against him are recorded in writing (framing of charges); b) He is given a copy of the Charge Sheet and given at least 4 days time to explain in writing the charges; c) He is given a personal hearing by way of domestic enquiry, either at his request or at the instance of the management; d) The Chairman of the DSE or Vice-Chairman in his absence concurs with the decision for punishment by the Secretary in respect of all officials of the Dhaka Stock Exchange below him and in respect of disciplinary action against the Secretary, Chairman and the board of Directors shall take the final decision. In case of punishment a copy of the order inflicting such punishment shall be supplied to the punished official. An employee refused to accept any notice, letter charge sheet, order or any or any other document addressed to him by the management it shall be deemed that the same had been delivered to him if a copy of the same has been exhibited on the notice Board and another copy has been sent to the address of official as available from the records of the office, by registered post. In awarding the punishment the management will take in to account the gravity of the misconduct, the previous record, if any of the person concerned and any other extenuating or aggravating circumstances that may exist.
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overtime allowance for working beyond office hours. Members of the staff entitled to overtime allowance shall get it at thereat of double of their basic pay. But if they are supplied with refreshment by the office, they will get the same at single rate. Overtime allowance for working on a holiday may also be given in the same manner as in a serial (i) above. But the incumbent working on a holiday is also entitled to get traveling allowance for journey to end from his residence at the rate decided by the management. No one will be entitled to overtime for working less than an hour beyond office hours. Over time allowance will only be given to an incumbent who will be detained for a specific assignment with prior approval of the competent authority. 4.3.17.2 Festival Bonus: National Employees are entitled to a single festival bonus paid annually equivalent to one moths basic salary during their main festival period. Festival bonuses will be received at least ten days before the following festivals: Muslim Hindu Buddhist Christian Eid-ul-Fitre, Eid-ul-Azah Durga Puja Buddha Purnima Christmas
If an employees main festival is not mentioned here the AGM, HRD should be informed in writing about his/her main festival, and accordingly his/her festival bonus will be paid. Employees who have completed less than on e year of continuous service on the first day of the festival month will receive pro-data festival bonus, calculated according to staffs monthly basic salary as of the festival month divided by 12 multiplied by working length. If an employee has worked less than one month, a minimum of one months period will be the calculation basis.
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If an employee is separated before the festival month, s/he will be paid the accrued amount with the final payment. The accrued value will be considered from one festival month to the next. HRD will inform the payroll unit of accounts section to pay festival bonus to each regular and contract employees at least two weeks ahead of the festival date based on the religious affiliation indicated on the employees preliminary job application form. 4.3.17.3 Employee Remuneration: When people work for a company, they expect to receive from the company something in return for their efforts. Employee remuneration refers the Compensation and reward given by companies to their employees. The remuneration to employees can be broadly divided in two types. The first is the pay, which they can spend as they please. The second is the job facilities provided to them to improve their effectiveness and comfort on the job. These can be provides in physical form such as company car, or as payment of expenses like travel, lodging, dining and entertaining incurred while performing company work. The amount of the remuneration as well as the form and way in which it is paid has major implication on employee performance and cost. The pay can have two components. A fixed pay independent of the performance levels of individual or groups of employee, and a variable pay linked to the performance levels. Fixed amount is to satisfy need for income stability, and the variable component is to stimulate and reward greater effort. The fixed pay may be paid in several different forms and under different names like basic salary, dearness allowance, city compensatory allowance, and house rent allowance. Here it will be useful to clarify that although dearness allowance varies with the price index, it forms part of fixed component of employees earning as it is not linked to on the job performance. Companies under different names like incentive, commission and bonus also pay the variable pay. To simplify our discussion here we will use the term incentive to include all types of
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variable components monetary compensation. The incentives can be of different types, and can be linked to the performance in different ways. 4.3.17.4 Food Allowance: This solution is designed to be used by organizations offering food or beverages allowance for their staff using reassurances, coffee shops, or any other shops. The aim of this solution is to organize and control the three parties of the allowance triangle, which are the employee, the organization, and the restaurant. The software manages billing for allowance between the service providers and the organization and provides the organization with allowance usage trends and statistical reports that helps to re-shape company policies. This allowance is made for below executive level in DSE. 4.3.17.5 Special Bonus/Allowance: According to the rules of special bonus, obtaining 60% marks in annual confidential report is one of criteria. The calculation of ACRs for the calendar year 2007 reveals that all our valued employees (who have successfully completed one year) earned 60% marks in their ACRs. According to the tenure of service in DSE, the total employees of DSE are categorized in the following ways: 1) Members in the top-level management on contract service. 2) Employees served DSE for a period of one year and above. 3) Employees completed six months but not one year. Special allowance for working on a holiday may also be given for executive level and above to get entertainment and travel allowance at the rate decided by the management. 4.3.17.6 Increment: Employee in all grades as specified will ordinarily-receive annual increment subject to the performance, attendance record and conduct during the preceding year which shall be the basis of the annual increment. Increment may be withheld as a measure of punishment. The competent authority ordering such withholding of increment shall state the period for which such increment is withheld. In case of promotion from lower
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to the higher post/grade, the incumbent who was already drawing more than the minimum basic of the higher scale shall have the pay fixed after adjustment to fit into the new scale.
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4.3.18.2 Provident Fund: The Officers and Employees on regular employment of the DSE shall be required to subscribe to the contributory provident fund of the Exchange at the rate of 10% of their basic pay. The Exchange will contribute an equal amount to the said fund. Procedure of withdrawal from and final payment of the fund will be governed by the Rules framed specifically for the purpose with the approval of the Government. 4.3.18.3 Gratuity: Every employee of the Exchange who has completed at least five years of his/her continued service shall be entitled to enjoy the benefit. Gratuity shall not be paid to an employee whose service is terminated by the DSE on disciplinary measure. In case of death of an employee, gratuity shall be paid to the nominee(s) and/or legal heir(s) of the deceased employee at the usual rate for the period of service rendered to the Dhaka Stock Exchange. In case of consolidated pay for the purpose of this clause, basic pay shall mean an amount so apportioned by the authority. Computation of annual gratuity shall be made on the basis of 1 (one) months basis pay (last pay drawn) of the employee concerned for each completed year of service from the date of his appointment/confirmation. For the purpose of payment of Gratuity, basic salary is defined as basic pay as per pay scale applicable, without any allowance but inclusive of accrued increment. At the end of each year accrued Gratuity shall be debited as expense and credited to a deferred liability account and properly shown in the account of the Dhaka Stock Exchange.
4.3.19 Transfer
Job transfers generally fall into one of two categories: those initiated by management or those made in response to an employees request. Transfers initiated by the employer may be necessary because of temporary workload imbalances; the need to rotate employees to limit exposure to harmful conditions; corporate restructuring; dislocations caused by job elimination or reductions in force; and demotions in response to disciplinary or performance problems. Employees may initiate a transfer because they want new or broader experience; there is friction among coworkers; they want to better use their skills; or they need
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accommodation for disabilities or family care responsibilities. Either way, transfers may be temporary or long-term, depending on the organizations business needs.
4.3.20 Termination
Employers should have termination policies to ensure consistent treatment among employees whose working relationship with the organization is ending, for whatever reason. The Service of probation or temporary employee can be terminated without assigning any reason and the incumbent shall not be entitled to any compensation for termination of service except his accrued benefits. The authority may terminate the service of the confirmed employee or call upon him to resign without assigning any reason by giving him 3 (three) months notice in writing of 3 (three) months substantive pay in lieu thereof. However, such person will be entitled to encashment of accumulated Earned Leave (if any), Gratuity and Provident Fund. The Board of Directors shall have the right to remove, dismiss or retire from the service an employee as a disciplinary measure or on medical ground. The service of an employee may also be terminated by giving 3 (three) months notice or 1 (one) months pay in lieu thereof in the eve nt of abolition of the post of the post being decided surplus.
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CHAPTER- 5
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5.1 Recruitment
Recruiting refers to organizational activities that influence the number and types of applicant who apply for a job and whether the applicants accept jobs if offered. Different companies follow different methods to acknowledge the labor market about their job vacancy and goes through a process to select the tight employees. The type of labor force arid the organizational culture and structure plays a big role on how a company is going to recruit. As an independent & growing organization DSE has adopted the traditional as well as new ways of recruitment. The Assistant General Manger of the Human Resource currently heads this department. The major functions of this department are strategic planning and policy formulation for Compensation, Recruitment, Promotion, Training and developments, Personnel Services and Security, All major personnel functions are integrated in the best possible way at DSE, which results in its higher productivity. The Human resource officer monitors the employee staffing and administration activities. The Training officer supervises Training, development & rotation activities. The Human Resource Department is going to recruit huge number of qualified employees from March2009. The Recent Recruits are as follows: Chief Executive Officer (CEO) Proposed. Chief Operating Officer (COO) Processing. Search for Professionals (Different Departments) Have Just Completed. Executive On Probation (Fresh Post Graduate) Processing. Project at Nikunja (Engineers) Have Just Completed.
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For executive Level, they arc recruited through advertisement and sometimes executives are also recruited from the recommendations and referrals of any current employee of the organization.
posting advertisements. Usually for DSE the job they offer in the universities posting are part time jobs and occasionally full time jobs. An example of job advertisement is attached in the report. This process has been quite successful because many of the time college /university recruits turned out to be efficient; and effective and later were recruited as full time employees. This part-time recruitment process also gives universities students an opportunity to earn money and also have and exposure to practical work experience. This is giving a social standing for DSE.
5.3.4 Internet
DSE is few of the organizations in Bangladesh that uses Internet for recruitment. It has a linking "Career page in its Home Page that gives a list of jobs available at present. It can go from operating level post to managerial level, and full Lime to part time. The page provides an application form. This makes it easy for the job seeker to apply for a job with out going through the process of looking for a job in the newspaper. Again this is a new and easy way of recruiting for DSE because other than the initial cost, these docs not cost them much except maintenance cost whereas news paper advertisement; is much more costly. Also this provides them with list of new applicants in their database automatically- the application form in the Internet is given below. From the form we can sec that it is quite detailed and informative.
5.3.5 Interns
DSE recruits intern from different universities for example, Daffodil International University Dhaka University IBA, NSU and other different public and private university. It gives them as exposure of potential employee. There are number of purposes for these programs: Allows DSE to get specific projects done, Give the company an exposure to potential employees who may become their "recruiters"-Through DSE docs not have special system of recruiting interns as permanent employees they do get some preference if they were efficient in their internship. For the interns it is a change to use talent in the real working environment and a possible job opportunity.
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5.4 Selection
Selection is the process by which an organization chooses from a list of applicants the person or persons who best meet the selection criteria for the position available, considering current environmental conditions. Like any other organization there are actually multiple goals associated with DSE selections process. All selection programs of DSE attempt to identify the applicants who have the highest chance of meeting or exceeding the organization's standards of performance. Through selection process DSE tries to find out the optimal match between the job and the amount of any particular characteristics that an applicant may possess.
were learned at their home, at school, on the job, and so on. For certain jobs DSE stipulate the education requirement in a particular area of expertise, such as engineers for its technical sides. DSE prefers graduates from different Universities and it also mentions the minimum grade point for the respected applicants who can apply for the job. DSE always tries to set up the standards that arc actually required by the job. Another useful criterion is used by DSE is experience and past performance selection specialties believe that past performance on a similar job might be one of the best indicators of ability and work related attitudes. They believe that the perspective employee who has performed the job before and is applying for a similar job must like the work and must be able to do the job well.
qualified for die position. Usually, DSE uses application blanks as a screen tool for jobs that requires some types of professional certification like an ACCA, CMA, CA for business graduates even MCP for Computer Engineers. In this way the application blank can clement the need for subsequent interviews to gather this information. This makes the selection process of DSE far more efficient first, by reducing the number of applicants that need to be interviewed and second, by allowing interviewers to focus on other kinds of information (personality, technical and communication skills). While designing application blank DSE gives more emphasize on that information which arc important for the organization and help die organization to make a better job related assessment of the applicant. DSE avoids those types of questions that related to race, physical health, disabilities and so on. After collecting this information DSE selects 30-40% of the applicants who have minimum qualification for the job and DSE does this screening process through computer in order to avoid -my personal biasness or unfairness. Applicants who are judged as minimally qualified on the basis of the application blank will then proceed to the next phase of the selection process. 5.7.2 Step 2: Completing the Application Form Once the initial screening has been completed, applicants are asked to complete the organization's application form. The amount of information required may be only die applicant's name, address, and telephone number. In general terms, the application form gives a job-performance-related synopsis of what applicants have been doing during their adult life, their skills, and their accomplishments. Applications are also useful in that they obtain information the company wants. 5.7.3 Step 3: Employment Written Test Organizations historically relied to a considerable extent on intelligence, aptitude, ability, and interest tests to provide major input to the selection process. Even handwriting analysis (graphology) and honesty tests have been used in the attempt to learn more about the candidateinformation that supposedly leads to more effective selection. The selection process of DSE differs for each level in the organization. The entry-level positions necessitate written tests and viva whereas senior level positions requires viva.
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5.7.4 Step 4: Cognitive Ability Test The Ability Tests are concentrated to judge the candidates: Oral communication & written communication skill, Analysis and judgment. Creativity Initiative. Patience. Conflict management skills, Organizational sensitivity and Tolerance for stress. DSE is planning to introduce psychological and personality test in their selection process. DSE can measure the personality characteristics and temperament through these techniques. So, by introducing new techniques with its existing techniques DSE can effectively select the applicants who have potential qualifications for performing the job. 5.7.5 Step 5: Employment Interview DSE uses interview as a selection technique because through interview it can identify die qualified candidates. While designing interviews DSE usually follows two strategies for making the most out of an interview arc structuring the interview reliable and valid, and training managers to use the available interviewing techniques. During the selection process in DSE, the HR head in the presence of the head of the specific department interviews the potential candidate where there is a vacancy. The HR uses a more or less informal approach to interview the candidate. He often repeats certain questions to sec if the information given is right. There are different kinds of interviews like selection interview, career planning interview performance appraisal interviews, counseling interview, disciplinary interview, exit interview etc. The interviewers in the interview board of DSE include: President of DSE Directors or Members of DSE - 71 -
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This combination makes die interviewing process more efficient and effective. 5.7.6 Step 6: Reference & Medical Check Up The next step in the selection process is to go through an investigation of those applicants who appear to offer potential as employees. This include contacting with the previous employer or referrals to confirm the candidates work record, behavior, attitude and other performances which was appraise or prominent in that person. This also includes contacting other job related and personal references and verifying the educational accomplishments shown on the application. Also the candidates have to go through a medical check up to determine whether they ate physically fit to work or not. The majority of physical examinations are currently required to meet the minimum standards for the organization's group life and medical insurance programs and to provide base data in case of worker's compensation claims. Routine check-ups like blood-group test, H1V test, Eye power, and hepatitis, drugs and fitness test. These are only to see whether the person could fit in the actual job setting. 5.7.7 Step 7: Selection Decision The selection decision is usually the ultimate decision of DSE. After passing the entire step DSE decides which applicants is hired by die organization. A: this stage, die managers make [he final decisions and offer the available job to potential candidates who arc qualified after passing all [he steps-Through this selection process DSE choose from a list of applicants, the person or persons who best meet the selection criteria for the position available, considering current environmental conditions. 5.7.8 Step 8: Job Offer Those individuals who perform successfully in the preceding steps are now considered to be eligible lo receive the employment offer. Those individuals, who perform successfully on the
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employment tests and the comprehensive interview and arc no: eliminated by the development of negative information on either the background investigation on the physical examination or the probation period, arc considered to be eligible to receive an offer of employment- Finally, among the potential applicants the best applicant is chosen whose score is high in the justified evaluation sheet and considered to be selected as an employee.
The Company is reputed to have young and energetic work force, which is the best asset of it. It seems that DSE is attracting the young generation, as the company has been able to recruit substantial number of young people. Female Workforce
The other aspect is DSE is encouraging female workers. Though still now, the number of females is still not that high. Trends in Recruitment
Since the beginning, DSE has made necessary recruitment to all-important positions. The trend in recruitment of employees shows that it has a decreasing trend and especially female employees, Gender Basis of Employees
Female employees are well represented at DSE with a fairly large number, of them employed as officers* But there is the glass ceiling as we can1 sec from the graph that at the managerial level there are few numbers of female employees. Performance evaluation is the activity used to determine the extent to which an employee performs work effectively, DSE uses both Formal an informal methods of performance evaluation.
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CHAPTER-6
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It is found that the employees performance appraisal process of DSE is irregular. It also noticed that the evaluation job satisfaction is irregular. It is also found that employee turn over is high in DSE. Since DSE always gives much emphasize on HRM especially in recruitment and selection process phase. In the process of studying the issue following aspects have been identified and deserve explanation:
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do not go for forecasting the supply of Inside Candidates for cross-functional activities of specialized, professional or general areas of works. Inter departmental exchange or recruitments of internal candidates require necessary trainable technical and interpersonal skills for enhancing level of efficiency of staff.
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7.1 Recommendations
Getting the right people, at the right place and time is crucial for the success of each and every organization. The job of the selection process is to identify die right kinds of people for the job. So there are few recommendations for HRD in my perspective. Since HR activities are expanding day by day and as a large organization, HRD should increase their employee for better performance. The HR department should make sure that the employee aware of any new polices and procedures either adopted or not. Since it has found lack of motivation on employees so HRD can motivate to the employee for better output. Salary, bonus or other financial benefits are not up to the mark as other financial organization. So it should be clear. Otherwise employee turn over rate will be increased. DSE should create better opportunity like promotion, incentive so that employees turnover rate can be prohibited. This is the era of modern technology of computing so HRD should adopt latest configured Computer, Internet, Fax. Now days without this HRD cannot move. The Human Resource Information System (HRIS) is a software or online solution for the data entry, data tracking, and data information needs of the Human Resources, payroll, management, and accounting functions within a business. An effective HRIS provides information on just about anything the company needs to track and analyze about employees, former employees, and applicants. It is found that the employees performance appraisal and job satisfaction process is irregular. So HRD should make sure it is efficient and effective. Since Annual Confidential Report (ACR) is prepared every year for the employees and after result should make in a right way so that nobody can suffer.
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Since few unskilled employees in HRD so they should proper trained up and make sure that they are technically sound for the regular HR activities.
Since DSE always gives much emphasize on HRM especially in recruitment and selection process phase. In the process of studying the issue following recommendations have been identified and deserve explanation; Staff Planning is the first important factor for successful recruitment for long-term benefit of an organization. Therefore, they should develop both long short-term staff and personnel planning for recruitment. Factors in forecasting Personnel needs should not taken into consideration; 1. Quality and nature of employees 2. Technological and administrative changes 3. Available financial resources DSE needs to forecast the supply of the internal candidates through: 1. Qualification inventory 2. Personnel replacement charts 3. Position replacement card In order to make structure recruitment, HR should make for planning and forecasting the supply of internal candidates in die first place. Qualification or skill inventory plays an important role for this purpose. It should include: Work experience, stock, capital market, industry experience, formal education, training information and data in compliance with equal employment opportunity conditions. DSE verifies the accuracy of factual information provided by the applicants. But they should make reference checking more productive, they should also emphasis on uncovering damaging background information such as criminal records or any previous termination due to employees fault and insincerity, DSE should make a reference audit requires contracting:
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1. At least two Superiors 2. At least two peers 3. Two Subordinates Some suggestions for DSE for collecting Background information: 1. Check al! Applicable state law 2. Information should not be obtained which will not be used 3. Information should be job related and specific 4. Information should be kept as confidential and up to data 5. Unreasonable investigation should not be authorized
For selection and recruitment of External candidate, DSE should also emphasize on: 1. General economic conditions 2. Local market conditions 3. Occupational market conditions as well as other criterion
DSE should hire and encourage qualified women employees to make a healthy gender balance, which would definitely lead DSE as equal opportunity employer. They can also gain comparative advantages in this regard.
DSE can take steps to actively recruit more diverse work force especially for recruiting minorities, older qualified people and women. Thus they contribute not only as profit maximizing but also as socially responsible reputed organization.
It is also found out that not all the people at the HR Department at DSE have an academic background in Human Resource Management So recommendation is that all Personnel Relations Managers should have a degree from the discipline of Human Resource Management. This will enable DSE to manage its people more effectively and efficiently.
It may change the advertisement policy for the vacant post and new rules should be sent to the Human Resource department for Recruitment and Selection process.
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It is seen that in case of DSE, some steps are occasionally omitted. This sort of practice may sometimes make the selection process not as reliable as it should have been. Recruitment process should be transparent and in accordance with organizational recruitment policies, so that the efficiency of the employees' can be ensured to some extent. So I recommend that the management may strictly follow all the steps at all times without any exceptions.
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7.2 Conclusion
The role of Dhaka Stock Exchange Ltd has been remarkable in recent years. It has gained the confidence of public and is able to attract more funds. At the end of last decade what was impossible has now become possible and any company listed with Dhaka Stock Exchange can expect to sufficient funds through it. In 2nd July 2009 DSE has crossed Tk.1000 crore which is landmark for capital market in Bangladesh.
The Dhaka Stock Exchange has been able to attract a sufficient volume of foreign funds and the number of investors is growing day by day. If this trend continues Dhaka Stock Exchange market will be efficient one in the near future .At the end of year 2010 Dhaka Stock Exchange is expected to become one of the major stock markets in this region.
So far we have observed that Dhaka Stock Exchange has suffered from ups and downs and it can be attributed to the efficiency of the members and some of the consistent policies of the Government with more experience. In the coming year in dealing with such busy capital market both the Dhaka Stock Exchange members and Government policy makers are expected to be more consistent in their practices and policies. Their product role in the future will certainly be a major factor in the performance of Dhaka Stock Exchange market. The first priority of HR department is to assist and support functional departments. DSE has focused highest priority in the human resource management and in consequence of that it has established human resource function under a separate department.
Finally regarding recruitment and selection DSE should plan future recruitment procedure and strategies along with Human Resource Management, bearing in mind for better inter organizational communication, gender balancing, forecasting the supply of internal and external opportunity, benefits and steps for Diverse workforce. Thus DSE can be recognized not only as profit maximizing organization but also as reputed socially and globally responsible organization along with efficient and effective Human Resources as Human Capital.
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Bibliography
1.
Professor M. Shahjahan Mina, Advisor, Faculty of Business and Economics, Daffodil International University.
2.
Ms. Hosne Ara Pervin, AGM, HRM, Administration & Training Affairs, Dhaka Stock Exchange Ltd. 9/F Motijheel C/A, Dhaka-1000.
3.
Mr. Mohammad Ebna Reaz, Executive Officer, Merchant Banking Wing, Head Office, Southeast Bank Ltd, Dilkusha C/A, Dhaka-1000.
4.
Md. Saiful Islam, Executive, HRM, Administration & Training Affairs, Dhaka Stock Exchange Ltd. 9/F Motijheel C/A, Dhaka-1000.
5. 6.
Ms. Sharmin, Research, Development & Information Personnel/Human Resources Management by David A. DeConzo and Stephen P. Robbins.
DSE Monthly Reviews for May, 2009 DSE Annual Report, 2007-2008 www.dsebd.org http://www.bdstock.com/marketcapitalization.htm www.dse.com.bd www.secbd.org
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