FEDERATION OF EURO-ASIAN STOCK EXCHANGES > YEARBOOK 2002/2003 > PAGE 34
DHAKA STOCK EXCHANGE
LETTER FROM THE CEO
The year 2002 will be marked in the
history of capital market of
Bangladesh as the beginning of an
economic reorientation.
During the year 2002 we witnessed the
culmination of a number of projects previously
undertaken. The year 2002 will be marked in
the history of capital market of Bangladesh as
the beginning of an economic reorientation.
After a peaceful national election, the new
government has already taken various steps
to revamp the economy of the country. The
Dhaka Stock Exchange (DSE) continued to
keep an ongoing emphasis on investor
awareness, training and information
dissemination.
With regard to capital market reforms, the
Securities and Exchange Commission (SEC)
of Bangladesh has undertaken some major
initiatives. The thrust of these reforms has
been toward safeguarding investors’ interests,
increasing market efficiency and transparency,
and improving risk management practices at
the country’s stock exchanges. These reforms
will have the effect of bringing Bangladeshi
markets in line with the best international
practices.
In order to establish a well-developed
securities market in the economy, we have
made extensive efforts to bring about
modernization and development of the DSE.
Mafiz Uddin Ahmed
Chief Executive Officer
Our own regulatory expertise and capacity is
being strengthened. Our major objectives are
to provide investors with transparent and
efficient trading, safe and secure settlement
and accurate and timely information
dissemination.
HISTORY AND DEVELOPMENT
The Dhaka Stock Exchange (DSE) was
incorporated in March 1954 as the East Pakistan
Stock Exchange Association Ltd. On 23 June
1962, it was renamed the Dhaka Stock Exchange.
Formal trading began in 1954 but was suspended
when Bangladesh gained independence in 1971.
With the change in the economic policy of the
government in 1976, however, trading activities
were ultimately resumed with nine listed
companies. By December 2002, there were 229
securities listed on the DSE, including 10 mutual
funds and 10 debentures, with a total market
capitalization of approximately US$ 1.2 billion.
During 2002, the DSE embarked on a radical
reform program:
Greenfield companies are to be placed in a new
category. There are now A, B, Z and G categories
for listed securities.
The DSE suspended the netting facility of nine
listed companies due to a dividend declaration
of 60% from previous year, as per new SEC
regulations.
Several foreign delegations visited the DSE,
among them the British Deputy High
Commissioner, the Chairman of International
Titanium Resources Ltd., Australia and
representatives of other leading professional and
educational institutions.
A ten-member delegation led by the DSE
Chairman, Mr. Ahmed Iqbal Hasan, called on
Prime Minister Begum Khaleda Zia, the
Honorable Prime Minister of the People’s
Republic of Bangladesh at her office on 25 April
2002.
A 23-member delegation of the DSE, led by its
Chairman Mr. Ahmed Iqbal Hasan, visited the
Calcutta Stock Exchange on 19 August 2002.
The delegation was appraised of the Central
Depository System of the Calcutta Bourse.
FUTURE OUTLOOK
During 2003 the DSE plans to:
implement online worldwide trading over the
Internet;
automate the clearing and settlement system of
the Exchange;
develop and implement the automation of back
office functions and services;
construct a multi-storied modern premises for
the DSE;
install RMS in the online trading system;
install a clearing and settlement module; and
continue efforts to increase Exchange
membership to 500.