OBJECTIVES OF THE STUDY
- The major objective of this study is to evaluate the performance and contribution of CSE on capital market of Bangladesh. The objectives of my study are stated as follows:
- To know the Existing structure review
- Manning Scenario i. e. present HR inventory
- Levels in the Management of CSE
- Authority Relationship & Reporting Practices
- Decision Making Process
- Selection & Recruitment Process
- Training Policies
- To know about the organizational structure
- To acquaint with the services and facilities provided by CSE..
- To know the complete history organization and management of CSE,
METHODOLOGY OF THE STUDY
In preparing this report I have collected data and information from the following sources:
- Primary Data
- Secondary Data
Primary Data are collected through:
- Observation for the total internee period
- Open ended and closes ended question
- Conducting interview both customers and staffs of the CSE
Secondary Data are collected through: For secondary data I have gone through different types of publications & CSE web address. I had also used published data. They are:
- Literature review about the specific item being discussed
- Various publications of CSE
- Trade journal
- Research reports connected with the stock exchange
- Internet.
SCOPE OF THE STUDY
The data and information have been collected, tabulated, processed and analyzed carefully and report has been prepared in the present form to make the study more informative and useful. I’ve prepared this report on the basis of a comprehensive study on Chittagong Stock Exchange Ltd. o be acquainted with the real life situations especially with stock trading procedure.
As I was involved in Chittagong Stock Exchange as an internee I know various areas of the stock exchange, its managing procedures, working systems and environments which are very helpful to know & to increase our knowledge & to get more information and data regarding my topic. The information section of Chittagong Stock Exchange is very rich that’s why I was able to collect the required books, magazines, periodicals, journals, brochures, portfolio and the Internet facilities.
LIMITATION OF THE STUDY
- Despite my sincerest endeavor in preparing a perfect report, some of the limitations are inescapable. These are as follows:
- Due to short time, I could not collect enough necessary data about the study to prepare the report.
- Some of key peoples of CSE were very much busy with their duties that they could seldom manage time to answer the questions.
- Researcher could not find sufficient data because of CSE great secrecy.
- Some how the respondents were reluctant to deliver information without perceiving the services.
- Respondents had not clear knowledge about Central Depository Bangladesh Ltd. CDBL).
- Due to technical (Computerized) system many functions are not clear to the interviewer.
- Investors are not fluently giving their opinion due to time constraint.
- Investors are not so much cooperative to give their speech in the trading session.
Though there are some limitations I had tried with all of my efforts to know and find out the response pattern of the subjects and consultation of relevant record and document. Data have reached a fairly acceptable degree of accuracy.
INTRODUCTION TO CSE
Stock market is an essential part of capital market. The economy of a country largely depends on a strong capital market. The participation of stock market in the collection & allocation of the funds to finance industry & other enterprises largely influence the economy. Stock exchange is an independent company formed by shareholders & members. The purposes of stock exchange is to provide a market place as well as facilities for bringing together the buyers & sellers of securities, promote trade of the product & work for the interest of the investors.
The primary market is that market in which the companies issue their shares. The primary market helps a firm to form their capital by selling their securities. It’s serves as the conduct for funds from the investors to the firms. The primary market is basically a market of new issue. In this the share issuing companies sell their shares to the public through the underwriters. Once the shares traded the functions of the primary market comes to an end. In this market there is no existence of the brokers.
In this market the brokers play an important role. There is no interference of the underwriters in this market. In this market the shares which are issued in the primary market are traded through the brokers. An example of this sort of market is the organize stock exchange like Dhaka Stock Exchange & Chittagong Stock Exchange. The shares issuing firm doesn’t get any direct benefit from this market. But it helps to determine the probable price of the new issue and its demand to investors. The functions of the market are controlled and regulated by the security exchange commission which guided by security and exchange commission Act 1993.
ACTIVITIES OF VARIOUS DEPARTMENTS
The various department of Chittagong stock exchange are as follows: Market Regulation
- Listing and Membership Department
- Market Operation Department (MOP)
- Surveillance Department
- Inspection and Auditing
- Finance Department
- Investor Information Cell
- Systems department (IT)
- Clearing and settlement department
- Accounts and finance department
- Research and developments and public relation department.
Every company must be listed in the stock market for working thereon and they have to fulfill various formalities. The listing and membership department deals with the various formalities of listing and membership with CSE.
Formalities related with the enlistment of a company and membership is discussed in below: Listing Section: If the companies willing to expand their market may apply for listing with the CSE, according to the manner prescribed in the Listing Regulations. Listing Company means a Company or a body corporate or corporation, which has been listed and includes provisionally listed companies. Unless the company or the securities have been granted, no dealings in securities of a company shall be allowed. Eligibility for Listing:
The Company has to be a Registered Public Ltd. that must be incorporated in Bangladesh under the Companies Act. 1994 with the office of the Registered of Joint Stock Companies and Firms. It must have a minimum paid up capital of Tk. 10 million. Shares of a listed company can be issued through primary market or secondary market. Application for Listing: Application for listing in the stock exchange should be made as per Form-1, under Section (9) of the Securities and Exchange Ordinance 1969 Section-140 of the Companies Act. 994, within 10 days from the date of publishment of the Company’s prospectus. The stock exchange shall grant permission within a maximum period of 3 months from the date of receipt of listing application.
In case, the permission is refused, the reason thereof will be communicated to the applicant and also to the Securities & Exchange Commission within 2 weeks of the decision. If refused, the applicant may move a fresh application after six months from the date of such refusal unless the Board otherwise decides.
CONTINUOUS LISTING REQUIREMENTS
The following are the Continuous Listing Requirements:
- A listed company shall pay an annual listing fee before the 31st March in calendar year-Clause 33(3) of the listing regulations.
- Whenever a listed company increases the paid-up capital, any of its shares shall pay a fee equivalent to one fourth of one percent of such increase- Clause 33(2) of the listing regulations.
- A listed company shall hold its AGM within 9 months following the close of its financial year- Clause 19(1) of the listing regulations.
- A listed company shall intimate before 14 days to the Exchange in respect of the date and time of holding of its AGM or EGM. Clause 29 of the listing regulations.
- A listed company shall give a minimum of 14 days notice to the Exchange prior to closure of share transfer books for any purpose. Clause 13(1) of the listing regulations.
- A listed company shall provide a minimum period of 7 days but not exceeding 15 days at a time for closure of Share Transfer Register, for any purpose, not exceeding 45 days in a year in the whole. Clause 13(5) of the listing regulations.
- A listed company shall advise by appropriate writings to the Exchange of all dividends and entitlement in respect of its listed securities immediately upon recommendation by its directors. Clause 15(1) of the listing regulations.
- Intimation of dividend and of all other entitlement shall be sent to the exchange not later than 14 days prior to commencement of the book closure. Clause 15(2) of the listing regulations.
- Recommendation or decision of non-declaration of dividend. Clause 36(5) of the listing regulations
- Recommendation or decision of Interim dividend or bonus. Clause 36(6)(a)(1) of the listing regulations.
- Recommendation of a final dividend (including bonus if any). Clause 36(a)(2) of the listing regulations.
- Changing of Capital structure of a listed Company by issuance of Right or bonus share (information to Exchange instantly by telephone and letter afterwards). Clause 36(6)(b) of the listing regulations
- A listed company shall send to the Exchange 50 copies each of statutory reports, annual reports and audited accounts not later than 14 days before a meeting of the shareholders. Clause 17(1) of the listing regulations
- A listed company shall send to the Exchange 50 copies of half yearly accounts before the expiry of a meeting of the shareholders. Clause 17(3) of the listing regulations
- A listed company shall send to the Exchange copies of all notice and certified copies of all resolutions as soon as these have been adopted. Clause 17(2) of the listing regulations.
- A listed company shall furnish copies of its AGM and EGM to the Exchange within 60 days of such meeting. Clause 20(1) of the listing regulations.
- A listed company shall furnish to the Exchange a complete list of all its shareholders as at the 31st December in each calendar year. Clause 20(2) of the listing regulations.
- A listed company shall notify the Exchange immediately regarding changes in its Board of Directors, Companies Secretary, and Registers of Auditors. Clause 36(2) of the listing regulations. Proposal for changes in the general character or nature of business of the listed company. Clause 36(3) of the listing regulations.
- Changes of substantial share holding . Clause 36(13) of the listing regulations.
- Any change of address of the registered office . Clause 36(11) of the listing regulations.
- A listed company shall inform the Exchange regarding loss certificates and forged certificate as and when a report is lodged with the company. Clause 40 of the listing regulations.
- A listed company shall immediately notify the Exchange of any material change in the nature of its business. Clause 27 of the listing regulations.
- A listed company shall inform exchange of all decision taken by its Board of Directors and/or shareholders regarding any change in authorized, issued, or paid-up capital, issue of bonus shares, right shares or refund of capital and/or reduction of capital. Clause 21 of the listing regulations.
- Any information necessary to avoid the establishment of a false market. Clause 36(1) of the listing regulations.
