Hemekar Najme

ID : 221326507
 Welcome
BANGLADESH SECURITIES AND
EXCHANGE COMMISSION
About BSEC
Agency overview
Formed 8 June 1993; 30 years ago
Jurisdiction Bangladesh
Headquarters Dhaka, Bangladesh
Agency executive Shibli Rubayat Ul Islam, Chairman
 History
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.Before the commission, the
market were regulated under the Capital Issues Act 1947.The
chairman and members of the commission are appointed by the
government.
 Address of SEC
Securities Commission Bhaban,
E-6/C Agargaon Sher-e-Bangla Nagar Administrative Area Dhaka-
1207,Bangladesh
 SEC TO BSEC
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 is a statutory
body and attached to the Ministry of Finance.
 Objectives of SEC
They are the essential objectives of SEC as follows:
 To monitor, investigate and control the capital market,
 To ensure development and evolution of share market,
 To regulate the share or debenture issue.
 To formulate policies for the capital market.
 To establish a new stock exchange.
 To protect frauds and other misdeeds.
 Vision of BSEC
Its Vision is the development of modern and efficient
corporate sector and capital market, based on sound
regulatory principles.
 Strategy Of BSEC

Strategy is to develop an efficient and dynamic regulatory

body, ensures proper risk management procedures in the
capital market, and protects investors through responsive
policy measures and effective enforcement practices.
 Mission of BSEC

The mission of the Commission are

 protecting the interest of investors in securities;
 developing the securities market;
 formulating rules on securities related matters or on
related topics thereunder.
 Initially concerned of SEC

 It was initially concerned with the regulation of

corporate sector and capital market.
 Over time, its mandate has expanded to include
supervision and regulation of insurance companies,
non- banking finance companies private pensions.
 BSEC Regulating
The Bangladesh Securities and Exchange Commission
(BSEC) is the regulator of the capital market of
Bangladesh, comprising
 Dhaka Stock Exchange (DSE)
 Chittagong Stock Exchange (CSE).
 Dhaka Stock Exchange Limited

 Type: Stock Exchange

 Location: Dhaka, Bangladesh
 Founded: 1954; 69 years ago
 Owner: Dhaka Stock Exchange Limited
 Key people: MD Eunusur Rahman(Chairman)
Dr. ATM Tariquzzaman(Managing Director)
 Currency: Bangladeshi taka (৳)
 No. of listings:625
 Market cap: US$ 72.1 billion (2023)
 Indices: DSE 30 Index, Dhaka Stock Exchange Broad
(DSEX), DSES Index
 Website: dsebd.org
 Chittagong Stock Exchange
 Type: Stock Exchange
 Location: Chittagong, Bangladesh
 Founded: 12 February 1995
 Owner: Chittagong Stock Exchange PLC
 Key people: Mr. Md. Ghulam Faruque (Managing Director)
 Currency: Taka (৳)
 No. of listings:250
 Market cap: US$ 38.1 billion (2020)[1]
 Indices: CSE30,CSCX,CASPI,CSI,CSE50
 Website: cse.com.bd
 Main Functions
 Regulating the business of the Stock Exchanges or
any other 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.
 BSEC Division
 Law Division
 Securities Market Division
 Specialized Companies Division
 Insurance Division
 Management of BSEC
 Risk management: Market risk defines the overall risk involved in
the capital market investments. The stock market rises and falls
depending on a number of issues.
 Asset management: Asset Management is the business of
providing financial products or services to a customer for a fee or
commission.
 Portfolio management: It involves deciding how much risk to
take, then choosing asset classes to match an investor's preferred risk-
return tradeoff.
 Problems and Limitations of BSEC

 Irregular payment dividends

Some companies do not hold Annual General
Meeting and eventually declare dividends that do not
reflect the real or actual financial positions of the
company and ultimately shareholders
become confused.
 Price Manipulation
It has been observed that the share values of some
profitable companies have been increased fictitiously
some times that hampers the smooth operation of
DSE.
 Delays of settlement
Financing procedures and delivery of securities
sometimes take an unusual long time for which the
money is blocked for nothing.
 Conclusion
Capital market is the source of long-term financing
for the business and industries, way of mobilizing
savings to investment, and provider of price
discovery and liquidity generation through organized
stock exchanges.