The Dhaka Stock Exchange (DSE) ( bn, ঢাকা স্টক এক্সচেঞ্জ ''Dhaka stôk ekschenj''), located in Nikunja,

Dhaka Dhaka ( or ; bn, ঢাকা, Ḍhākā, ), formerly known as Dacca, is the capital and largest city of Bangladesh, as well as the world's largest Bengali-speaking city. It is the eighth largest and sixth most densely populated city ...

, is one of the two

stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for th ...

s of

Bangladesh Bangladesh (}, ), officially the People's Republic of Bangladesh, is a country in South Asia. It is the eighth-most populous country in the world, with a population exceeding 165 million people in an area of . Bangladesh is among the mos ...

, the other being the

Chittagong Stock Exchange The Chittagong Stock Exchange ( bn, চট্টগ্রাম স্টক এক্সচেঞ্জ) is a stock exchange based in the port city Chittagong, Bangladesh. It is one of the twin financial hubs of the country, alongside the Dh ...

. In 2021, the combined

market capitalisation Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders. Market capitalization is equal to the market price per common share multiplied by t ...

of listed companies on the Dhaka bourse stood at over $68 billion.

History

First incorporated as

East Pakistan East Pakistan was a Pakistani province established in 1955 by the One Unit Scheme, One Unit Policy, renaming the province as such from East Bengal, which, in modern times, is split between India and Bangladesh. Its land borders were with India ...

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. Again renamed as

Dacca Dhaka ( or ; bn, ঢাকা, Ḍhākā, ), formerly known as Dacca, is the capital and largest city of Bangladesh, as well as the world's largest Bengali-speaking city. It is the eighth largest and sixth most densely populated city i ...

Stock Exchange Ltd on 13 May 1964. After the

liberation war Wars of national liberation or national liberation revolutions are conflicts fought by nations to gain independence. The term is used in conjunction with wars against foreign powers (or at least those perceived as foreign) to establish separat ...

in 1971 the trading was discontinued for five years. In 1976 trading restarted in Bangladesh, on 16 September 1986 DSE was started. The formula for calculating DSE all share price index was changed according to IFC on 1 November 1993. The

automated trading An automated trading system (ATS), a subset of algorithmic trading, uses a computer program to create buy and sell orders and automatically submits the orders to a market center or exchange. The computer program will automatically generate orders ba ...

was initiated on 10 August 1998 and started on 1 January 2001. A

central securities depository A central securities depository (CSD) is a specialized financial organization holding securities like shares, either in certificated or uncertificated ( dematerialized) form, allowing ownership to be easily transferred through a book entry rather t ...

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 The 2010-11 Bangladesh share market scam was a period of instability in the stock market from 2009 to 2011; the turmoil was in the two Bangladeshi stock exchanges, DSE and CSE. The market rose 62% in 2009, and 83% in 2010, but then declined 10% ...

. Currently, there are total 22 industrial sectors in DSE which accommodate 625 listed companies.

Formation

Dhaka Stock Exchange (DSE) is a

public limited company A public limited company (legally abbreviated to PLC or plc) is a type of public company under United Kingdom company law, some Commonwealth of Nations, Commonwealth jurisdictions, and the Republic of Ireland. It is a limited liability 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 In finance and law, issued shares are the shares of a corporation which have been allocated (allotted) and are subsequently held by shareholders. The act of creating new issued shares is called ''issuance''. Allotment is simply the transfer of sh ...

of this company is Tk. 500,000, which is divided up to 250

shares In financial markets, a share is a unit of equity ownership in the capital stock of a corporation, and can refer to units of mutual funds, limited partnerships, and real estate investment trusts. Share capital refers to all of the shares of an ...

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 Bangladesh Bank ( bn, বাংলাদেশ ব্যাংক) is the central bank of Bangladesh and is a member of the Asian Clearing Union. It is fully owned by the Government of Bangladesh. The bank is active in developing green banki ...

* ICB –

Investment Corporation of Bangladesh Investment Corporation of Bangladesh (ICB) ( bn, বাংলাদেশ বিনিয়োগ সংস্থা) is a statutory corporation of Government of the People's Republic of Bangladesh, established on 1 October 1976 under No. 40 of ...

* President of

Institute of Chartered Accountants of Bangladesh An institute is an organisational body created for a certain purpose. They are often research organisations (research institutes) created to do research on specific topics, or can also be a professional body. In some countries, institutes can ...

* President of

Federation of Bangladesh Chambers of Commerce and Industries Federation of Bangladesh Chambers of Commerce and Industry (FBCCI; bn, বাংলাদেশ শিল্প ও বণিক সমিতি) is the apex trade organization of Bangladesh playing a pivotal role in consultative and advisory capa ...

* President of

Metropolitan Chambers of Commerce and Industries Metropolitan may refer to: * Metropolitan area, a region consisting of a densely populated urban core and its less-populated surrounding territories * Metropolitan borough, a form of local government district in England * Metropolitan county, a typ ...

* Professor of Finance Department of

Dhaka University The University of Dhaka (also known as Dhaka University, or DU) is a public research university located in Dhaka, Bangladesh. It is the oldest university in Bangladesh. The university opened its doors to students on July 1st 1921. Currently i ...

* President of

Dhaka Chamber of Commerce & Industry Dhaka Chamber of Commerce & Industry (DCCI), established in 1958, is a large organization for businesspeople in Dhaka, Bangladesh. History Dhaka Muslim Chamber of Commerce and Industry (1936) and the United Chamber of Commerce and Industry (1947 ...

Trading

The Dhaka Stock Exchange is open for trading Sunday through Thursday between 10:00am – 2:30pm BST, with the exception of holidays declared by the Exchange in advance. In the month of

Ramadan , type = islam , longtype = Religious , image = Ramadan montage.jpg , caption=From top, left to right: A crescent moon over Sarıçam, Turkey, marking the beginning of the Islamic month of Ramadan. Ramadan Quran reading in Bandar Torkaman, Iran. ...

, the exchange is open for trading between 10:00am – 2:00pm BST. There are a total of 625 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.

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

References

External links

* * {{World Federation of Exchanges Economy of Dhaka Stock exchanges in Bangladesh Former stock exchanges in Pakistan 1954 establishments in East Pakistan Financial services companies established in 1954

History

Formation

Management

Trading

2010–11 crash

List of chairpersons

See also

References

Further reading

External links