“Bismillah-hir rahmanir rahim”

WelcomeTo Our Presentation

PRESENTATION ON

GROUP (D)

• MD. JIAUR RAHMAN (CAPTAIN) B-143002• Akib Kibria B-143107• SAGAR ISLAM B-143020• MD SALAUDDIN KAISAR B-143008• E.M. SELIM JUNAYED B-143001

Submitted To

Md. Mosleh Uddin

What is a stock market?

• A stock market or equity market is a market for the trading of company stock (shares) and derivatives at an agreed price.

• The Bangladesh Securities and Exchange Commission (BSEC) is the regulator of the capital market of Bangladesh, comprising Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). The Commission is a statutory body and attached to the Ministry of Finance.

SEC Regulating the DSE and a CSE

CSE

DSE

SEC

Securities and Exchange Commission (SEC)• It is the regulatory body of Bangladesh capital

market. SEC Regulating the DSE (Dhaka Stock Exchange) and CSE (Chittagong Stock Exchange)

• SEC defines working process and rules and policies under which the stock exchanges will operate.

Structure of stock Market

Capital Market

Primary Market

Secondary Market

Structure of stock Market

The Primary Market

• The primary market deals with newly issued securities and is responsible for generating new long-term capital.

The secondary

• The secondary market handles the trading of previously-issued securities, and must remain highly liquid in nature because most of the securities are sold by investors.

Functions Of Stock Market•It provide ready market for securities•It helps in price discovery of securities.•It insure low cost of raising finance issue of new market instruments in the market•Helps in capital generation process.•Encourages capital formation•Provides proper direction to invest capital•Promotion of investment.•Help capital formation.•Give mobility to capital.•Exercise control over the working of companies.

Problems Of Stock Market In Bangladesh

• Price manipulation It has been observed that the share values of some profitable companies has been increased fictitiously some items that hampers the smooth operation of Stock market

• .Delays in Settlement:Financing procedures and delivery of securities sometimes take an unusual long time for which the money is blocked from nothing

• .Irregulations in Dividends: Some companies do not hold Annual General Meeting(AGM) and eventually declare dividends that confused the shareholders about the financial positions of the company

• Selection of Membership:Some members being the directors of listed companies of DSE, CSE look for their own interest using their internal information of share market

Suggestions to improve the activities of Stock Market

• To introduce automated monitoring system that may control price manipulation

• To introduce full computerized system for settlement of transactions.

• To force the listed companies to publish their annual reports with actual and proper information.

• Banks, insurance companies and other financial institution should be encouraged deal in share business directly.

• To take remedial action against the issues of fake certificates.• The management of DSE and CSE should be vested with

professionals and should not in any way be linked with the ownership of stock exchange and other firms

Thank you for your patient hearing