The Financial Market in Bangladesh an Overview of Capital Market.Doc
The Capital Market in Bangladesh: an overview on volatility and trends
1.0 Introduction 1. Importance of Study
Financial markets are facilitated through the flow of funds in order to finance investments by corporations, governments, and individuals. Financial Institutions are the key players in financial because they serve as intermediaries that determine the flow of funds. So, among them we have to channelize the fund in proper way to give the opportunity for investment in Bangladesh.
2.0 Capital Market in Bangladesh
2.1 Capital Market
A capital market is a market debt or equity based, where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year. The Capital market plays a significant role in the economy of the country.
A. Regulatory Bodies The Securities and Exchange Commission (SEC) exercise powers under the Securities and Exchange Ordinance 1969, Securities and Exchange Commission (SEC) Act 1993, Depository Act, 1999. It regulates institutions engaged in capital market activities.
B. Participants in the Capital Market
The SEC has issued licenses to institutions to act in the capital market of these, 52 institutions are Merchant Banker & Portfolio Manager while 16 are the Asset Management Companies and 9 (one) acts as Security Custodians beyond these institutions SEC issuing 9 (nine) registration certificate for Credit Rating Companies.
Stock Exchanges There are two stock exchanges: a) The Dhaka Stock Exchange (DSE) and b) The Chittagong Stock Exchange (CSE) which deals in the secondary capital market. DSE was established as a Public Limited Company in April, 1954 thereafter CSE in April, 1995. As on June 15, 2012 the total number of enlisted securities with DSE and CSE were 237 and 204 respectively. Out of 281 listed securities including mutual fund with the DSE, 237 were listed companies, 41 mutual funds, 8 debentures and
1.0 Introduction 1. Importance of Study
Financial markets are facilitated through the flow of funds in order to finance investments by corporations, governments, and individuals. Financial Institutions are the key players in financial because they serve as intermediaries that determine the flow of funds. So, among them we have to channelize the fund in proper way to give the opportunity for investment in Bangladesh.
2.0 Capital Market in Bangladesh
2.1 Capital Market
A capital market is a market debt or equity based, where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year. The Capital market plays a significant role in the economy of the country.
A. Regulatory Bodies The Securities and Exchange Commission (SEC) exercise powers under the Securities and Exchange Ordinance 1969, Securities and Exchange Commission (SEC) Act 1993, Depository Act, 1999. It regulates institutions engaged in capital market activities.
B. Participants in the Capital Market
The SEC has issued licenses to institutions to act in the capital market of these, 52 institutions are Merchant Banker & Portfolio Manager while 16 are the Asset Management Companies and 9 (one) acts as Security Custodians beyond these institutions SEC issuing 9 (nine) registration certificate for Credit Rating Companies.
Stock Exchanges There are two stock exchanges: a) The Dhaka Stock Exchange (DSE) and b) The Chittagong Stock Exchange (CSE) which deals in the secondary capital market. DSE was established as a Public Limited Company in April, 1954 thereafter CSE in April, 1995. As on June 15, 2012 the total number of enlisted securities with DSE and CSE were 237 and 204 respectively. Out of 281 listed securities including mutual fund with the DSE, 237 were listed companies, 41 mutual funds, 8 debentures and