The Dhaka Stock Exchange (DSE) ( ''Dhaka stôk ekschenj''), located in Nikunja,

Dhaka Dhaka ( or ; , ), List of renamed places in Bangladesh, formerly known as Dacca, is the capital city, capital and list of cities and towns in Bangladesh, largest city of Bangladesh. It is one of the list of largest cities, largest and list o ...

, is one of the two

stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for ...

s of

Bangladesh Bangladesh, officially the People's Republic of Bangladesh, is a country in South Asia. It is the List of countries and dependencies by population, eighth-most populous country in the world and among the List of countries and dependencies by ...

, the other being the Chittagong Stock Exchange. In January 2023, DSE and

Nasdaq The Nasdaq Stock Market (; National Association of Securities Dealers Automated Quotations) is an American stock exchange based in New York City. It is the most active stock trading venue in the U.S. by volume, and ranked second on the list ...

announced their partnership with trading technology.

History

It was first incorporated as

East Pakistan East Pakistan was the eastern province of Pakistan between 1955 and 1971, restructured and renamed from the province of East Bengal and covering the territory of the modern country of Bangladesh. Its land borders were with India and Burma, wit ...

Stock Exchange Association Ltd on 28 April 1954 and started formal trading in 1956. It was renamed as East Pakistan Stock Exchange Ltd on 23 June 1962. It was again renamed as

Dacca Dhaka ( or ; , ), List of renamed places in Bangladesh, formerly known as Dacca, is the capital city, capital and list of cities and towns in Bangladesh, largest city of Bangladesh. It is one of the list of largest cities, largest and list o ...

Stock Exchange Ltd on 13 May 1964. After the

liberation war Wars of national liberation, also called wars of independence or wars of liberation, are conflicts fought by nations to gain independence. The term is used in conjunction with wars against foreign powers (or at least those perceived as foreign) ...

in 1971 the trading was discontinued for five years. In 1976 trading restarted in Bangladesh, and DSE was started on 16 September 1986. The formula for calculating DSE all share price index was changed according to IFC on 1 November 1993. The automated trading was initiated on 10 August 1998 and started on 1 January 2001. A

central securities depository A central securities depository (CSD) is a specialized financial market infrastructure organization holding securities such as shares or bonds, either in certificated or uncertificated ( dematerialized) form, allowing ownership to be easily tra ...

system was initiated on 24 January 2004. As of 16 November 2009, the benchmark index of the Dhaka Stock Exchange (DSE) crossed 4000 points for the first time, setting another new high at 4148 points. In 2010, the index crossed 8500 points and finally crashed in the first quarter of 2011. Millions of investors lost their money and came out onto the street, blaming the speculators and regulators for the bubble that finally burst in what became known as the 2011 Bangladesh share market scam. Currently, there are 22 industrial sectors in DSE which accommodate 625 listed companies.

Formation

Dhaka Stock Exchange (DSE) is a

public limited company A public limited company (legally abbreviated to PLC or plc) is a type of public company under United Kingdom company law, some Commonwealth of Nations, Commonwealth jurisdictions, and Republic of Ireland, Ireland. It is a limited liability co ...

. It is formed and managed under Company Act 1994, Security and Exchange Commission Act 1993, Security and Exchange Commission Regulation 1994, and Security Exchange (Inside Trading) regulation 1994. The

issued capital In economics and law, issued shares are the shares of a corporation which have been allocated (allotted) and are subsequently held by shareholders. The act of creating new issued shares is called ''issuance''. Allotment is simply the transfer of s ...

of this company is Tk. 500,000, which is divided up to 250

shares In financial markets, a share (sometimes referred to as stock or equity) is a unit of equity ownership in the capital stock of a corporation. It can refer to units of mutual funds, limited partnerships, and real estate investment trusts. Sha ...

each pricing Tk. 2000. No individual or firm can buy more than one share. According to the stock market rule, only members can participate on the floor and buy shares for themselves or their clients. At present, it has 238 members. The market capitalization of the Dhaka Stock Exchange reached nearly $9 billion in September 2007 and $27.4 billion on 9 December 2009.

Management

The management and operation of Dhaka Stock Exchange is entrusted to a 25 members board of directors. Among them, 12 are elected from DSE members, another 12 are selected from different trade bodies and relevant organisations. The CEO is the 25th ''ex officio'' member of the board. The government has appointed Shibli Rubayat Ul Islam, who teaches banking and insurance at Dhaka University, as the chairman of Bangladesh Securities and Exchange Commission, reports bdnews24.com. The following organisations are currently holding positions in DSE Board: *

Bangladesh Bank Bangladesh Bank (BB; ) is the central bank of Bangladesh and is a member of the Asian Clearing Union. It is fully owned by the Bangladesh, Government of Bangladesh. The bank is active in developing green banking. and financial inclusion poli ...

* ICB – Investment Corporation of Bangladesh * President of

Institute of Chartered Accountants of Bangladesh The Institute of Chartered Accountants of Bangladesh (ICAB) is the national professional accountancy body and research institute in Bangladesh. It is the sole organisation in Bangladesh with the right to award the Associate Chartered Accountant de ...

* President of Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) * President of Metropolitan Chamber of Commerce and Industry, Dhaka and Industries * Professor of Finance Department of Dhaka University * President of Dhaka Chamber of Commerce & Industry (DCCI).

Trading hours

The Dhaka Stock Exchange is open for trading Sunday through Thursday between 10:00am – 2:30pm BST, except for holidays declared by the exchange in advance. In the month of

Ramadan Ramadan is the ninth month of the Islamic calendar. It is observed by Muslims worldwide as a month of fasting (''Fasting in Islam, sawm''), communal prayer (salah), reflection, and community. It is also the month in which the Quran is believed ...

, the exchange is open for trading between 10:00am – 2:00pm BST. There are a total of 651 Securities and 397 companies listed on this Stock exchange. The listing provides an exclusive privilege to securities in the stock exchange. Only listed shares are quoted on the stock exchange. A stock exchange facilitates transparency in transactions of listed securities in perfect equality and competitive conditions. Listing is beneficial to the company, to the investor, and to the public at large. The trading indices are DSE Broad Index (DSEX), DSE Shariah Index (DSES), DSE 30 Index (DS30), CDSET.

2010–11 crash

The bullish market turned bearish during November 2010, with the exchange losing 1,800 points between December 2010 and January 2011. Millions of investors have been rendered bankrupt as a result of the market crash. The crash is believed to be caused artificially to benefit a handful of players at the expense of the big players.

List of chairpersons

References

External links

* * {{World Federation of Exchanges Economy of Dhaka Stock exchanges in Bangladesh Former stock exchanges in Pakistan 1954 establishments in East Bengal Financial services companies established in 1954