History of Stock Exchanges of Bangladesh
Dhaka Stock Exchange:
The necessity of establishing a stock exchange in the then East Pakistan was first decided by the government when, early in 1952, it was learnt that the Calcutta Stock Exchange had prohibited the transactions in pakistani shares and securities. The provincial industrial advisory council soon thereafter set up an organizing committee for the formation of a stock exchange in East Pakistan. A decisive step was taken the second meeting of the organizing committee held on the 13th march, 1953. In the cabinet room, eden building, under the chairmanship of Mr. A. Khaleeli, secretary government of East Bengal, commerce, labor and ...view middle of the document...
1913. The other 7 promoters of the exchange were Mr. J M Addision-Scott, Mr. Mhodammed Hanif, Mr. A C Jain, Mr. A K Khan, Mr. M Shabbir Ahmed and Mr. Sakhawat Hossin.
It was also decided that membership fee was to be RS.2000 and subscription rate at 15 per month. The exchange was to consist of not more than 150 members. A meeting of the promoters was held at the chamber on 03.09.1953 when it was decided to appoint Orr Dignam & Co., solicitors to draw up the memorandum and articles of association of the stock exchange based on the rules of stock exchange existing in other countries and taking into account local conditions.
The 8 promoters incorporated the formation as the East Pakistan Stock Exchange Association Ltd. on 28.04.1954. As public company, on 23.06.1962 the name was revised to East Pakistan Stock Exchange Ltd. Again on 14.05.1964 the name of East Pakistan Stock Exchange Limited was changed to "Dhaka Stock Exchange Ltd."
At the time of incorporation the authorized capital of the exchange was RS. 300000 divided into 150 shares. Of RS. 2000 each and by an extra ordinary general meeting adopted at the extra ordinary general meeting held on 22.02.1964 the authorised capital of the exchange was increased to TK. 500000 divided into 250 shares of TK. 2000 each. The paid up capital of the exchange now stoods at TK.460000 dividend into 230 shares of TK. 2000 each. However 35 shares out of 230 shares were issued at TK. 80,00,000 only per share of TK. 2000 with a premium of TK. 79,98,000.
Although incorporated in 1954, the formal trading was started in 1956 at Narayanganj after obtaining the certificates of commencement of business. But in 1958 it was shifted to Dhaka and started functioning at the Narayangonj Chamber Building in Motijheel C/A.
On 1.10.1957 the stock exchange purchase a land measuring 8.75 kattah at 9F Motijheel C/A from the government and shifted the stock exchange to its own location in 1959.
DSE at Glance
Incorporated as East Pakistan Stock Exchange Association Ltd.: 28th April 1954
Start of Formal Trading: 1956
Renamed as East Pakistan Stock Exchange Ltd.: 23rd June 1962
Renamed as Dacca Stock Exchange Ltd.: 13th May 1964
Trading Suspended under new State Policy: 16th December 1971
Trading Resumed in Bangladesh: 16 August 1976
Starting Of All Share price Index calculation: 16th September 1986
Share price Indices calculation on basis of IFC Designed formula: 1st November 1993
Starting of Automated trading: 10th August 1998
Starting Of DSE-20 Index calculation: January 2001
Starting Of DSE General Index calculation: 27th November 2001
Start of CDS through CDBL: 24th January 2004
DSE All share price Index (DSI) Re introduced: 28th March 2005
Functions of DSE:
The major functions are:
* Listing of Companies (As per Listing Regulations).
* Providing the screen based automated trading of listed Securities.
* Settlement of trading (As per Settlement of Transaction...