Discribe Rules and Regulations Maintained by Dhaka Stock Exchange

Rules and Regulations maintained by Dhaka Stock Exchange

The Dhaka Stock Exchange’s activities are regulated by the following Acts & Regulations:

  • Companies Act, 1994.
  • Securities and Exchange Commission Act, 1993
  • Securities & Exchange Commission Act, 1993 (Act repelling controller brokers)

Regulations, 1994.

  • Dhaka Stock Exchange

a) By laws, b) Listing rules, c) Memorandum of Association, d) Articles of

Association and e) Settlement of Transaction & Regulation.

DSE had many new rules and regulation as well as amendments in the rules & regulation of Stock Exchange, Issues in the overall capital market. Some major ones are as follows:

  • The National Parliament passed “The Depository Act, 1999” on the 5th of April 1999.
  • SEC adopted “ Public Issue Rules 1998” which was gazette on the 25th January 1999 and subsequently brought some amendments in this rule on the 28th April 1999.
  • SEC has approved the “Margin Rules 1999” to facilitate proper administration of credit facilities extended by the brokers to their clients and to enhance liquidity in the Exchange.
  • The cabinet on June 7th, 1999 approved the amended to the “Trust Act 1882” to facilitate the investment of 25% of pension and insurance funds in the capital market.
  • SEC has extended the time limit for brokers/dealers to continue underwriting business from 30 to December 31, 1999.
  • SEC amended the “Securities & Exchange Rules 1987” with a view to removing the “Counter Party Identification” facility from the trading of the Stock Exchange.
  • SEC amended the “Settlement of Stock Exchange Transactions Regulations 1998” envisaging stern measures against defaulters for failing to deliver securities or make payment within stipulated time.
  • DSE has a policymaking Body of 24 members, of whom 12 are elected and 12 are selected councilors.