Stock Exchange in Bangladesh

Stock Exchange once stock exchange was a place for companies’ stocks trading. But now, the stock exchange is a facilitator of stocks trading through a┬ácomputer based automatic trading system. A stock exchange is an exchange (or bourse) where stock brokers and traders can buy and sell shares of stock, bonds, and other securities. This┬ámay also provide facilities for issue and redemption of securities and other financial instruments and capital events including the payment of income and dividends.

But it was still an address that is only for administrative and communicative purposes. Among others, the stock exchange also performs the following functions:

i) listing of securities which include stocks, bonds, and mutual funds;

ii) trading provision for listed securities;

iii) real-time online market surveillance of trading and regular monitoring and compliance inspection of trading operation;

iv) settlement and clearance of executed trades.

Bangladesh is a developing country. The economy of this country is agro-based. Though the industrial sectors are growing faster today, the previous scenario of our industry was not satisfactory.

In Bangladesh, there are two stock exchanges; Dhaka and Chittagong Stock Exchange. The regulatory authority’ of the stock market is Securities and Exchange Commission. The stock exchange starts its journey in 1954. Then the name was East Pakistan Stock Exchange Association Ltd. In 1962 the name changes as East Pakistan Stock Exchange Ltd. and later on in 1964 its name change into Dhaka Stock Exchange Ltd.

During the liberation war in 1971, stock exchange stopped functioning. In 1976, after a change in the political situation, DSE started in independence Bangladesh for the first time.

In 1993 the “The Controller of the Capital Issue” established under Capital Issue Act 1947 and turned into Securities and Exchange Commission. SEC is the regulatory authority stock exchange in Bangladesh.

In 1995 Chittagong Stock Exchange was established as the second stock exchange Bangladesh. It got registered as a non-profit organization on 10 October 1995.

The condition of the stock exchange in Bangladesh is vulnerable and the price level always fluctuates. People are not aware of investing in stoke exchange in our country. But good news that many giant foreign companies are issuing shares in the stock exchange that may open a new horizon for our local investors.