Dhaka Stock Exchange
History
It was first incorporated as East Pakistan Stock Exchange Association Ltd on 28 April 1954 and started formal trading in 1956. It was renamed as East Pakistan Stock Exchange Ltd on 23 June 1962. It was again renamed as Dacca Stock Exchange Ltd on 13 May 1964. After the liberation war in 1971 the trading was discontinued for five years. In 1976 trading restarted in Bangladesh, and DSE was started on 16 September 1986. The formula for calculating DSE all share price index was changed according to IFC on 1 November 1993. The automated trading was initiated on 10 August 1998 and started on 1 January 2001. A central securities depository system was initiated on 24 January 2004.
As of 16 November 2009, the benchmark index of the Dhaka Stock Exchange (DSE) crossed 4000 points for the first time, setting another new high at 4148 points. In 2010, the index crossed 8500 points and finally crashed in the first quarter of 2011. Millions of investors lost their money and came out onto the street blaming the speculators and regulators for the bubble that finally burst in what became known as the 2011 Bangladesh share market scam. Currently, there are 22 industrial sectors in DSE which accommodate 625 listed companies.
Formation
Dhaka Stock Exchange (DSE) is a public limited company. It is formed and managed under Company Act 1994, Security and Exchange Commission Act 1993, Security and Exchange Commission Regulation 1994, and Security Exchange (Inside Trading) regulation 1994. The issued capital of this company is Tk. 500,000, which is divided up to 250 shares each pricing Tk. 2000. No individual or firm can buy more than one share. According to the stock market rule, only members can participate on the floor and buy shares for themselves or their clients. At present, it has 238 members. The market capitalization of the Dhaka Stock Exchange reached nearly $9 billion in September 2007 and $27.4 billion on 9 December 2009.
Management
The management and operation of Dhaka Stock Exchange is entrusted on a 25 members board of directors. Among them 12 are elected from DSE members, another 12 are selected from different trade bodies and relevant organisations. The CEO is the 25th ex officio member of the board. The government has appointed Professor Shibli Rubayat Ul Islam, who teaches banking and insurance at Dhaka University, as the chairman of Bangladesh Securities and Exchange Commission, reports bdnews24.com.
The following organisations are currently holding positions in DSE Board:
- Bangladesh Bank
- ICB – Investment Corporation of Bangladesh
- President of Institute of Chartered Accountants of Bangladesh
- President of Federation of Bangladesh Chambers of Commerce and Industries (FBCCI)
- President of Metropolitan Chamber of Commerce and Industry, Dhaka and Industries
- Professor of Finance Department of Dhaka University
- President of Dhaka Chamber of Commerce & Industry (DCCI).
Trading hours
The Dhaka Stock Exchange is open for trading Sunday through Thursday between 10:00 am – 2:30 pm BST, with the exception of holidays declared by the Exchange in advance. In the month of Ramadan, the exchange is open for trading between 10:00 am – 2:00 pm BST.
There are a total of 651 Securities and 397 companies listed on this Stock exchange. The listing provides an exclusive privilege to securities in the stock exchange. Only listed shares are quoted on the stock exchange. A stock exchange facilitates transparency in transactions of listed securities in perfect equality and competitive conditions. Listing is beneficial to the company, to the investor, and to the public at large.
The trading indices are DSE Broad Index (DSEX), DSEX Shariah Index (DSES), DSE 30 Index (DS30), CDSET.
2010–11 crash
The bullish market turned bearish during November 2010, with the exchange losing 1,800 points between December 2010 and January 2011. Millions of investors have been rendered bankrupt as a result of the market crash. The crash is believed to be caused artificially to benefit a handful of players at the expense of the big players.
List of chairpersons
Sn. | Name | Term Starts | Term Ends | Ref. |
---|---|---|---|---|
1 | Ahmad Fazlur Rahman | 1972 | 1975 | Official Website |
2 | Khurshid Alam | 27 February 1976 | 6 August 1979 | |
3 | Nur-E-Alam Siddique | 6 August 1979 | 6 November 1980 | |
4 | Khwaja Abdul Quddus | 6 November 1980 | 18 March 1981 | |
5 | Nur-E-Alam Siddique | 18 March 1981 | 22 December 1981 | |
6 | Khwaja Abdul Quddus | 22 December 1981 | 24 March 1983 | |
7 | Khurshid Alam | 24 March 1983 | 18 December 1985 | |
8 | Hemayet Uddin Ahmed | 18 December 1985 | 6 January 1987 | |
9 | Kazi Firoz Rashid | 6 January 1987 | 23 March 1990 | |
10 | Khwaja Abdul Quddus | 23 March 1990 | 20 Jun 1991 | |
11 | Aminul Islam Khan | 20 Jun 1991 | 7 October 1993 | |
12 | Khurshid Alam | 7 October 1993 | 6 December 1995 | |
13 | Imtiyaz Husain | 6 December 1995 | 11 May 1997 | |
14 | M. A Huq Howlader | 11 May 1997 | 24 December 1997 | |
15 | Md. Rakibur Rahman | 24 December 1997 | 30 March 2000 | |
16 | Md. Shahiq Khan | 30 March 2000 | 28 March 2002 | |
17 | Ahmed Iqbal Hasan | 28 March 2002 | 28 December 2003 | |
18 | Md. Shahiq Khan | 17 February 2005 | 7 February 2006 | |
19 | Md. Abdullah Bokhari | 7 February 2006 | 15 May 2008 | |
20 | Abdul Haque | 15 May 2008 | 28 February 2009 | |
21 | Md. Rakibur Rahman | 28 February 2009 | 27 March 2010 | |
22 | Md. Shakil Rizvi | 27 March 2010 | 15 March 2012 | |
23 | Md. Rakibur Rahman | 15 March 2012 | 15 Jun 2013 | |
24 | Ahasanul Islam | 15 June 2013 | 13 February 2014 | |
25 | Justice Siddiqur Rahman Miah | 14 February 2014 | 13 February 2017 | |
26 | Prof. Dr. Abul Hashem | 14 February 2017 | 12 February 2020 | |
27 | Md. Eunusur Rahman | 24 February 2020 | 18 February 2023 | |
28 | Prof. Dr. Hafiz Md. Hasan Babu | 5 March 2023 |
See also
References
- ^ "Company Listing". DSE. 8 December 2022.
- ^ "Bangladesh | Dhaka Stock Exchange: Number of Listed Companies and Shares | CEIC".
- ^ "Recent Market Information". DSE. 3 March 2023.
- ^ "DSE leaves behind today a history 60 years". Dhaka Tribune. 3 November 2019.
- ^ "Dhaka Stock Exchange Extends Technology Partnership with Nasdaq". finance.yahoo.com. 2 January 2023. Retrieved 19 January 2023.
- ^ "Company Listing | Dhaka Stock Exchange".
- ^ "Probe panel finds massive manipulation at Bangla stock market". India Times. 7 April 2011. Archived from the original on 3 January 2013. Retrieved 18 October 2011.
- ^ "Past Chairmen/ Presidents of DSE | Dhaka Stock Exchange".
Further reading
- Mansur, Ahsan H. (April 2010). "Is the Bull Market Sustainable?". Forum. The Daily Star. Retrieved 5 April 2010.
- Solaiman, Md Noor. (October 2012). "Share market crash and the reasons behind the disaster". Newspaper. The Financial Express. Archived from the original on 20 July 2017. Retrieved 5 April 2010.
External links
- Official website
- Media related to Dhaka Stock Exchange at Wikimedia Commons