Capital Market :

A financial market that works as a conduit for demand and supply of debt and equity capital. It
channels the money provided by savers and depository institutions (banks, credit unions,
insurance companies, etc.) to borrowers and investees through a variety of financial instruments
(bonds, notes, shares) called securities.
Capital Market is one of the significant aspect of every financial market. Hence it is necessary to
study its correct meaning. Broadly speaking the capital market is a market for financial assets
which have a long or indefinite maturity. Unlike money market instruments the capital market
instruments become mature for the period above one year. It is an institutional arrangement to
borrow and lend money for a longer period of time

Instruments :

Shares:
Share is the share in the share capital of the company.Share is one of the units into which the
capital of company is divided. A person having the shares of the company is called as
shareholder of that company, He is regarded as the part of owner of the company.

There are 2 types of shares:

 Equity shares
 Preference shares

Debentures :
Debentures are long term borrowed funds of the company. They have fixed maturity period as
well as fixed interest rate. These are the certificates issued under common seal of the company.

Bonds:
Bonds are the long term borrowed funds of the government and also companies. Like debentures
have fixed maturity and fixed interest rate even bonds have. Here interest charged on bonds
termed as coupon rate.

Derivatives: These are instruments that derive from other securities, which are referred to as
underlying assets. The price, riskiness and function of the derivative depend on the underlying
assets since whatever affects the underlying asset must affect the derivative.

Function :

Like the money market capital market is also very important. It plays a significant role in the
national economy. A developed, dynamic and vibrant capital market can immensely contribute
for speedy economic growth and development.
Mobilization of Savings :
Capital market is an important source for mobilizing idle savings from the economy. It mobilizes
funds from people for further investments in the productive channels of an economy. In that
sense it activate the ideal monetary resources and puts them in proper investments.

Capital Formation :
Capital market helps in capital formation. Capital formation is net addition to the existing stock
of capital in the economy. Through mobilization of ideal resources it generates savings; the
mobilized savings are made available to various segments such as agriculture, industry, etc. This
helps in increasing capital formation.

Provision of Investment Avenue :

Capital market raises resources for longer periods of time. Thus it provides an investment avenue
for people who wish to invest resources for a long period of time. It provides suitable interest
rate returns also to investors. Instruments such as bonds, equities, units of mutual funds,
insurance policies, etc. definitely provides diverse investment avenue for the public.

Speed up Economic Growth and Development :

Capital market enhances production and productivity in the national economy. As it makes funds
available for long period of time, the financial requirements of business houses are met by the
capital market. It helps in research and development. This helps in, increasing production and
productivity in economy by generation of employment and development of infrastructure.

Proper Regulation of Funds :

Capital markets not only helps in fund mobilization, but it also helps in proper allocation of these
resources. It can have regulation over the resources so that it can direct funds in a qualitative
manner.

Service Provision :
As an important financial set up capital market provides various types of services. It includes
long term and medium term loans to industry, underwriting services, consultancy services,
export finance, etc. These services help the manufacturing sector in a large spectrum.

The lack of an advanced and vibrant capital market can lead to underutilization of financial
resources. The developed capital market also provides access to the foreign capital for domestic
industry. Thus capital market definitely plays a constructive role in the over all development of
an economy.
Dhaka Stock Exchange – DSE:
The financial marketplace headquartered in Dhaka, Bangladesh. The Dhaka Stock Exchange was
incorporated in 1954, and formal trading began in 1956. Originally, the exchange was called the East
Pakistan Stock Exchange Association Ltd, and in 1962 the name was revised to East Pakistan Stock
Exchange Ltd. Two years later, on Feb. 22, 1964, the name was changed to current day Dhaka Stock
Exchange Ltd. The Dhaka Stock Exchange is registered as a Public Limited Company and is regulated by
the Bangladesh Securities and Exchange Ordinance of 1969, the Companies
Act of 1994 and the Securities and Exchange Commission Act of 1993.

Chittagong Stock Exchange – CSE:

The Chittagong Stock Exchange (CSE) began its journey in 10th October of 1995 from Chittagong City
through the cry-out trading system with the promise to create a state-of-the art bourse in the country. The
Chittagong Stock exchange was established in 1995 as a public company limited by guarantee with an
Authorized capital of 15 0’000’000 divided into 500 shares of Tk.300’000each. the second stock
exchange in the country, and located in the port city of Chittagong in southeastern Bangladesh.

Listed company under DSE & CSE :

List of Companies extended trading facilities on the Dhaka Stock Exchange Over-the-Counter (OTC)
market with effect from October 05, 2009 under the Securities and Exchange Commission (Over-the-
Counter) Rules, 2001 as per SEC Directive No. SEC/CMRRCD/2001-16/168 dated October 01, 2009.

Bank:

ALARABANK( Al-Arafah Islami Bank Ltd )

BANKASIA( Bank Asia Ltd. )

BRACBANK( BRAC Bank Ltd. )

CITYBANK( The City Bank Ltd. )

DHAKABANK( Dhaka Bank Ltd. )

DUTCHBANGL( Dutch-Bangla Bank Ltd. )

EBL( Eastern Bank Ltd. )

EXIMBANK( Export Import (Exim) Bank of Bangladesh Limited )

FIRSTSBANK( First Security Islami Bank Limited )

ICBIBANK( ICB Islamic Bank Limited )

IFIC( IFIC Bank Ltd. )

ISLAMIBANK( Islami Bank Bangladesh Limited )

JAMUNABANK( Jamuna Bank Ltd. )

MERCANBANK( Mercantile Bank Ltd. )

MTB( Mutual Trust Bank Ltd. )

NBL( National Bank Ltd. )

NCCBANK( National Credit and Commerce Bank Ltd. )

ONEBANKLTD( One Bank Limited )

PREMIERBAN( Premier Bank Ltd. )

PRIMEBANK( Prime Bank Ltd. )

PUBALIBANK( Pubali Bank Ltd. )

RUPALIBANK( Rupali Bank Ltd. )

SHAHJABANK( Shahjalal Islami Bank Ltd. )

SIBL( Social Islami Bank Limited )

SOUTHEASTB( Southeast Bank Ltd. )

STANDBANKL( Standard Bank Limited )

TRUSTBANK( Trust Bank Limited )

UCB( United Commercial Bank Ltd. )

Cement:

CONFIDCEM( Confidence Cement Ltd. )

HEIDELBCEM( Heidelberg Cement Bangladesh Ltd. )

LHBL( LafargeHolcim Bangladesh Limited )

MEGHNACEM( Meghna Cement Mills Ltd. )

MICEMENT( M.I. Cement Factory Limited )

PREMIERCEM( Premier Cement Mills Limited )

Ceramics Sector:

FUWANGCER( Fu-Wang Ceramic Industries Ltd. )

MONNOCERA( Monno Ceramic Industries Ltd. )

RAKCERAMIC( RAK Ceramics (Bangladesh) Limited )

SPCERAMICS( Shinepukur Ceramics Limited )

STANCERAM( Standard Ceramic Industries Ltd. )

Corporate Bond:

IBBLPBOND( IBBL Mudaraba Perpetual Bond )

Debenture:

DEBARACEM( Aramit Cement Ltd.(Deb-14%) )

DEBBDLUGG( Bangladesh Luggage Ind. Ltd.(Deb-14%) )

DEBBDWELD( BD Welding Electrodes Ltd.(Deb-15%) )

DEBBDZIPP( Bangladesh Zipper Ind. Ltd.(Deb-14%) )

DEBBXDENIM( Beximco Denims Ltd.(Deb-14%) )

DEBBXFISH( Beximco Fisheries Ltd.(Deb-14%) )

DEBBXKNI( Beximco Knitting Ltd.(Deb-14%) )

DEBBXTEX( Beximco Textiles Ltd.(Deb-14%) )

Engineering :

AFTABAUTO( Aftab Automobiles Limited )

ANWARGALV( Anwar Galvanizing Ltd. )

APOLOISPAT( Appollo Ispat Complex Limited )

ATLASBANG( Atlas Bangladesh Ltd. )

AZIZPIPES( Aziz Pipes Ltd. )

BBS( Bangladesh Building Systems Ltd. )

BBSCABLES( BBS Cables Limited )

BDAUTOCA( Bangladesh Autocars Ltd. )

BDLAMPS( Bangladesh Lamps Limited )

BDTHAI( Bd.Thai Aluminium Ltd. )

BENGALWTL( Bengal Windsor Thermoplastics Ltd. )

BSRMLTD( Bangladesh Steel Re-Rolling Mills Limited )

BSRMSTEEL( BSRM Steels Limited )

DESHBANDHU( Deshbandhu Polymer Limited )

ECABLES( Eastern Cables Ltd. )

GOLDENSON( Golden Son Ltd. )

GPHISPAT( GPH Ispat Ltd. )

IFADAUTOS( IFAD Autos Limited )

KAY&QUE( Kay & Que (Bangladesh) Ltd. )

KDSALTD( KDS Accessories Limited )

MONNOSTAF( Monno Jute Stafflers Ltd. )

NAHEEACP( Nahee Aluminum Composite Panel Ltd. )

NAVANACNG( Navana CNG Limited )

NPOLYMAR( National Polymer Industries Ltd. )

NTLTUBES( National Tubes Limited )

OAL( Olympic Accessories Limited )

OIMEX( Oimex Electrode Limited )

QUASEMIND( Quasem Industries Ltd. )

RANFOUNDRY( Rangpur Foundry Ltd. )

RENWICKJA( Renwick Jajneswar & Co (Bd) Ltd. )

RSRMSTEEL( Ratanpur Steel Re-Rolling Mills Limited )

SALAMCRST( S. Alam Cold Rolled Steels Ltd. )

SHURWID( Shurwid Industries Limited )

SINGERBD( Singer Bangladesh Limited )

WMSHIPYARD( Western Marine Shipyard Limited )

YPL( Yeakin Polymer Limited )

Financial Institutions:

BAYLEASING( Bay Leasing & Investment Limited )

BDFINANCE( Bangladesh Finance and Investment Co.Ltd )

BIFC( Bangladesh Industrial Fin. Co. Ltd. )

DBH( Delta Brac Housing Finance Corp. Ltd. )

FAREASTFIN( Fareast Finance & Investment Limited )

FASFIN( FAS Finance & Investment Limited )

FIRSTFIN( First Finance Limited )

GSPFINANCE( GSP Finance Company (Bangladesh) Limited )

ICB( Investment Corporation Of Bangladesh )

IDLC( IDLC Finance Ltd. )

ILFSL( International Leasing & Financial Services Ltd. )

IPDC( IPDC Finance Limited )

ISLAMICFIN( Islamic Finance & Investment Ltd. )

LANKABAFIN( LankaBangla Finance Ltd. )

MIDASFIN( MIDAS Financing Ltd. )

NHFIL( National Housing Fin. and Inv. Ltd. )

PHOENIXFIN( Phoenix Finance and Investments Ltd. )

PLFSL( Peoples Leasing and Fin. Services Ltd. )

PREMIERLEA( Premier Leasing & Finance Limited )

PRIMEFIN( Prime Finance & Investment Ltd. )

UNIONCAP( Union Capital Limited )

UNITEDFIN( United Finance Limited )

UTTARAFIN( Uttara Finance and Investments Limited )

Food & Allied:

AMCL(PRAN)( Agricultural Marketing Company Ltd. (Pran) )

APEXFOODS( Apex Foods Limited )

BANGAS( Bangas Ltd. )

BATBC( British American Tobacco bangladesh Company Limited )

BEACHHATCH( Beach Hatchery Ltd. )

EMERALDOIL( Emerald Oil Industries Ltd. )

FINEFOODS( Fine Foods Limited )

FUWANGFOOD( Fu Wang Food Ltd. )

GEMINISEA( Gemini Sea Food Ltd. )

GHAIL( Golden Harvest Agro Industries Ltd. )

MEGCONMILK( Meghna Condensed Milk Industries Ltd. )

MEGHNAPET( Meghna Pet Industries Ltd. )

NTC( National Tea Company Ltd. )

OLYMPIC( Olympic Industries Ltd. )

RAHIMAFOOD( Rahima Food Corporation Ltd. )

RDFOOD( Rangpur Dairy & Food Products Ltd. )

SHYAMPSUG( Shyampur Sugar Mills Ltd. )

ZEALBANGLA( Zeal Bangla Sugar Mills Ltd. )

Fuel & Power:

BARKAPOWER( Baraka Power Limited )

BDWELDING( Bangladesh Welding Electrodes Ltd. )

CVOPRL( CVO Petrochemical Refinery Limited )

DESCO( Dhaka Electric Supply Company Ltd. )

DOREENPWR( Doreen Power Generations and Systems Limited )

EASTRNLUB( Eastern Lubricants Ltd. )

GBBPOWER( GBB Power Ltd. )

INTRACO( Intraco Refueling Station Limited )

JAMUNAOIL( Jamuna Oil Company Limited )

KPCL( Khulna Power Company Limited )

LINDEBD( Linde Bangladesh Limited )

MJLBD( MJL Bangladesh Limited )

MPETROLEUM( Meghna Petroleum Limited )

PADMAOIL( Padma Oil Co. Ltd. )

POWERGRID( Power Grid Company of Bangladesh Ltd. )

SPCL( Shahjibazar Power Co. Ltd. )

SUMITPOWER( Summit Power Limited )

TITASGAS( Titas Gas Transmission & Dist. Co. Ltd. )

UPGDCL( United Power Generation & Distribution Company Ltd. )

Insurance:

AGRANINS( Agrani Insurance Co. Ltd. )

ASIAINS( Asia Insurance Limited )

ASIAPACINS( Asia Pacific General Insurance Co. Ltd. )

BGIC( Bangladesh General Insurance Company Ltd. )

BNICL( Bangladesh National Insurance Company Limited )

CENTRALINS( Central Insurance Company Ltd. )

CITYGENINS( City General Insurance Co. Ltd. )

CONTININS( Continental Insurance Ltd. )

DELTALIFE( Delta Life Insurance Company Ltd. )

DHAKAINS( Dhaka Insurance Limited )

EASTERNINS( Eastern Insurance Company Ltd. )

EASTLAND( Eastland Insurance Company Ltd. )

FAREASTLIF( Fareast Islami Life Insurance Co. Ltd. )

FEDERALINS( Federal Insurance Company Ltd. )

GLOBALINS( Global Insurance Company Ltd. )

GREENDELT( Green Delta Insurance Ltd. )

ISLAMIINS( Islami Insurance Bangladesh Limited )

JANATAINS( Janata Insurance Company Ltd. )

KARNAPHULI( Karnaphuli Insurance Company Ltd. )

MEGHNALIFE( Meghna Life Insurance Co. Ltd. )

MERCINS( Mercantile Insurance Co. Ltd. )

NATLIFEINS( National Life Insurance Company Ltd. )

NITOLINS( Nitol Insurance Co. Ltd. )

NORTHRNINS( Northern General Insurance Company Ltd. )

PADMALIFE( Padma Islami Life Insurance Limited )

PARAMOUNT( Paramount Insurance Company Ltd. )

PEOPLESINS( Peoples Insurance Company Ltd. )

PHENIXINS( Phoenix Insurance Company Ltd. )

PIONEERINS( Pioneer Insurance Comapny Ltd. )

POPULARLIF( Popular Life Insurance Co. Ltd. )

PRAGATIINS( Pragati Insurance Ltd )

PRAGATILIF( Pragati Life Insurance Ltd. )

PRIMEINSUR( Prime Insurance Company Ltd. )

PRIMELIFE( Prime Islami Life Insurance Ltd. )

PROGRESLIF( Progressive Life Insurance Co. Ltd. )

PROVATIINS( Provati Insurance Company Limited )

PURABIGEN( Purabi Gen. Insurance Company Ltd. )

RELIANCINS( Reliance Insurance Ltd. )

REPUBLIC( Republic Insurance Company Limited )

RUPALIINS( Rupali Insurance Company Ltd. )

RUPALILIFE( Rupali Life Insurance Company Limited )

SANDHANINS( Sandhani Life Insurance Company Ltd. )

SONARBAINS( Sonar Bangla Insurance Ltd. )

STANDARINS( Standard Insurance Limited )

SUNLIFEINS( Sunlife Insurance Company Limited )

TAKAFULINS( Takaful Islami Insurance Limited )

UNITEDINS( United Insurance Ltd. )

Mutual Funds:

1JANATAMF( First Janata Bank Mutual Fund )

1STPRIMFMF( Prime Finance First Mutual Fund )

ABB1STMF( AB Bank 1st Mutual fund )

AIBL1STIMF( AIBL 1st Islamic Mutual Fund )

ATCSLGF( Asian Tiger Sandhani Life Growth Fund )

CAPMBDBLMF( CAPM BDBL Mutual Fund 01 )

CAPMIBBLMF( CAPM IBBL Islamic Mutual Fund )

DBH1STMF( DBH First Mutual Fund )

EBL1STMF( EBL First Mutual Fund )

EBLNRBMF( EBL NRB Mutual Fund )

EXIM1STMF( EXIM Bank 1st Mutual Fund )

FBFIF( First Bangladesh Fixed Income Fund )

GRAMEENS2( Grameen One : Scheme Two )

GREENDELMF( Green Delta Mutual Fund )

ICB2NDNRB( ICB AMCL 2nd NRB Mutual Fund )

ICB3RDNRB( ICB AMCL Third NRB Mutual Fund )

ICBAGRANI1( ICB AMCL First Agrani Bank Mutual Fund )

ICBAMCL2ND( ICB AMCL Second Mutual Fund )

ICBEPMF1S1( ICB Employees Provident MF 1: Scheme 1 )

ICBSONALI1( ICB AMCL Sonali Bank Limited 1st Mutual Fund )

IFIC1STMF( IFIC Bank 1st Mutual Fund )

IFILISLMF1( IFIL Islamic Mutual Fund-1 )

LRGLOBMF1( LR Global Bangladesh Mutual Fund One )

MBL1STMF( MBL 1st Mutual Fund )

NCCBLMF1( NCCBL Mutual Fund-1 )

NLI1STMF( NLI First Mutual Fund )

PF1STMF( Phoenix Finance 1st Mutual Fund )

PHPMF1( PHP First Mutual Fund )

POPULAR1MF( Popular Life First Mutual Fund )

PRIME1ICBA( Prime Bank 1st ICB AMCL Mutual Fund )

RELIANCE1( "Reliance One" the first scheme of Reliance Insurance Mutual Fund )

SEBL1STMF( Southeast Bank 1st Mutual Fund )

SEMLIBBLSF( SEML IBBL Shariah Fund )

SEMLLECMF( SEML Lecture Equity Management Fund )

TRUSTB1MF( Trust Bank 1st Mutual Fund )

VAMLBDMF1( Vanguard AML BD Finance Mutual Fund One )

VAMLRBBF( Vanguard AML Rupali Bank Balanced Fund )

Pharmaceuticals & Chemicals

ACI( ACI Limited )

ACIFORMULA( ACI Formulations Limited )

ACMELAB( The ACME Laboratories Limited )

ACTIVEFINE( Active Fine Chemicals Limited )

ADVENT( Advent Pharma Limited )

AFCAGRO( AFC Agro Biotech Ltd. )

AMBEEPHA( Ambee Pharmaceuticals Ltd. )

BEACONPHAR( Beacon Pharmaceuticals Limited )

BXPHARMA( Beximco Pharmaceuticals Ltd. )

BXSYNTH( Beximco Synthetics Ltd. )

CENTRALPHL( Central Pharmaceuticals Limited )

FARCHEM( Far Chemical Industries Limited )

GHCL( Global Heavy Chemicals Limited )

GLAXOSMITH( GlaxoSmithKline(GSK) Bangladesh Ltd. )

IBNSINA( The IBN SINA Pharmaceutical Industry Ltd. )

IMAMBUTTON( Imam Button Industries Ltd. )

JMISMDL( JMI Syringes & Medical Devices Ltd. )

KEYACOSMET( Keya Cosmetics Ltd. )

KOHINOOR( Kohinoor Chemicals Company (Bangladesh) Ltd. )

LIBRAINFU( Libra Infusions Limited )

MARICO( Marico Bangladesh Limited )

ORIONINFU( Orion Infusion Ltd. )

ORIONPHARM( Orion Pharma Ltd. )

PHARMAID( Pharma Aids )

RECKITTBEN( Reckitt Benckiser(Bd.)Ltd. )

RENATA( Renata Ltd. )

SALVOCHEM( Salvo Chemical Industry Limited )

SQURPHARMA( Square Pharmaceuticals Ltd. )

WATACHEM( Wata Chemicals Limited )

Telecommunication:

BSCCL( Bangladesh Submarine Cable Company Limited )

GP( Grameenphone Ltd. )

Textile:

AIL( Alif Industries Limited )

AL-HAJTEX( Al-Haj Textile Mills Limited )

ALIF( Alif Manufacturing Company Ltd. )

ALLTEX( Alltex Industries Ltd. )

ANLIMAYARN( Anlimayarn Deying Ltd. )

APEXSPINN( Apex Spinning & Knitting Mills Limited )

ARGONDENIM( Argon Denims Limited )

CNATEX( C & A Textiles Limited )

DACCADYE( The Dacca Dyeing & Manufacturing Co.Ltd. )

DELTASPINN( Delta Spinners Ltd. )

DSHGARME( Desh Garmants Ltd. )

DSSL( Dragon Sweater and Spinning Limited )

DULAMIACOT( Dulamia Cotton Spinning Mills Ltd. )

ENVOYTEX( Envoy Textiles Limited )

ETL( Evince Textiles Limited )

FAMILYTEX( Familytex (BD) Limited )

FEKDIL( Far East Knitting & Dyeing Industries Limited )

GENNEXT( Generation Next Fashions Limited )

HFL( Hamid Fabrics Limited )

HRTEX( H.R.Textile Ltd. )

HWAWELLTEX( Hwa Well Textiles (BD) Limited )

MAKSONSPIN( Maksons Spinning Mills Limited )

MALEKSPIN( Malek Spinning Mills Ltd. )

MATINSPINN( Matin Spinning Mills Ltd. )

METROSPIN( Metro Spinning Ltd. )

MHSML( Mozaffar Hossain Spinning Mills Ltd. )

MITHUNKNIT( Mithun Knitting and Dyeing Ltd. )

MODERNDYE( Modern Dyeing & Screen Printing Ltd. )

NURANI( Nurani Dyeing & Sweater Limited )

PDL( Pacific Denims Limited )

PRIMETEX( Prime Textile Spinning Mills Limited )

PTL( Paramount Textile Limited )

QUEENSOUTH( Queen South Textile Mills Limited )

RAHIMTEXT( Rahim Textile Mills Ltd. )

REGENTTEX( Regent Textile Mills Limited )

RNSPIN( R.N. Spinning Mills Limited )

SAFKOSPINN( Safko Spinnings Mills Ltd. )

SAIHAMCOT( Saiham Cotton Mills Limited )

SAIHAMTEX( Saiham Textile Mills Ltd. )

SHASHADNIM( Shasha Denims Limited )

SHEPHERD( Shepherd Industries Limited )

SIMTEX( Simtex Industries Limited )

SONARGAON( Sonargaon Textiles Ltd. )

SQUARETEXT( Square Textile Ltd. )

STYLECRAFT( Stylecraft Limited )

TALLUSPIN( Tallu Spinning Mills Ltd. )

TOSRIFA( Tosrifa Industries Limited )

TUNGHAI( Tung Hai Knitting & Dyeing Limited )

ZAHEENSPIN( Zaheen Spinning Limited )

ZAHINTEX( Zahintex Industries Limited )

Function:

Stock exchange Protect investors:

As only genuine companies are listed and the activities of the stock exchange are controlled, the
funds of the investors are very much protected.

Stock exchange helps Capital formation:

Stock exchange plays an active role in the capital formation in the country. Companies are able
to raise funds either by issuing more shares through rights shares or bonus shares. But when a
company wants to go in for diversification, they can issue the shares and raise more funds. Thus,
they are able to generate more capital and this promotes economic growth in the country.

Liquidity in Stock Exchange

Institutions like banks can invest their idle funds in the stock exchange and earn profit even
within a short period. When necessity arises , these securities can be immediately sold for raising
funds. Thus, it is the stock exchange which provides opportunities for converting securities into
cash within a short notice.
Economic barometer:
The most important function of a stock exchange is that it acts as an economic indicator of
conditions prevailing in the country. A politically and economically strong government will have
an upward trend in the stock market. Whereas an unstable government with heavy borrowings
from other countries will have a downward trend in the stock market. So, every government will
adopt policies in such a manner that the stock exchange remains dynamic.

Control on companies:
One of the major function of stock exchange is that it has control on companies. The companies
listing their securities in the stock exchange has to submit their annual report and audited balance
sheet to the stock exchange. Thus, only genuine companies can function and have the shares
transacted. If not, such companies will be black listed and they will find it difficult to raise their
capital.

Attracts foreign capital:

Due to its dynamism and higher return on capital, the stock exchange is capable of attracting
more foreign funds. Due to this, the exchange rate of the currency will improve when there is
more trade undertaken by the government.

Monetary and fiscal policies:

The monetary policy and the fiscal policy of the government have to be favorable to
businessmen and producers. If they are not so, then through the stock exchange the government
may indicate and accordingly suitable steps can be taken.

Bangladesh Securities and exchange commission – BSEC :

The Bangladesh Securities and Exchange Commission (BSEC) was established on 8th June,
1993 as the regulator of the country’s capital market through enactment of the Securities and
Exchange Commission Act 1993. Through an amendment of the Securities and Exchange
Commission Act, 1993, on December 10, 2012, its name has been changed as Bangladesh
Securities and Exchange Commission from previous Securities and Exchange Commission. The
Commission consists of a Chairman and four Commissioners who are appointed for fulltime by
the government for a period of four years and their appointment can be renewed only for further
one term, subject to age limit 65. The Chairman acts as the Chief Executive of the Commission.
The Commission has overall responsibility to formulate securities legislation and to regulate the
market accordingly. The Commission is a statutory body and attached to the Ministry of
Finance.

Function:
 Registering and regulating the business of stock-brokers, sub-brokers, share transfer agents,
merchant bankers and managers of issues, trustee of trust deeds, registrar of an issue,
underwriters, portfolio managers, investment advisers and other intermediaries in the
securities market
 Registering, monitoring and regulating of collective investment scheme including all forms
of mutual funds.
 Monitoring and regulating all authorized self regulatory organizations in the securities
market.
 Prohibiting fraudulent and unfair trade practices relating to securities trading in any
securities market.
 Promoting investors’ education and providing training for intermediaries of the securities
market.
 Prohibiting insider trading in securities.
 Regulating the substantial acquisition of shares and take-over of companies.
 Undertaking investigation and inspection, inquiries and audit of any issuer or dealer of
securities, the Stock Exchanges and intermediaries and any self regulatory organization in
the securities market.
 Conducting research and publishing information