appraisal of cse

8/10/2019 Appraisal of CSE

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Appraisal of ChittagongStock Exchange


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PRACTICE A SET OF CORE VALUES TO BUILD COMPETENCY

IN COMPLIANCE, DIVERSIFICATION AND TECHNOLOGY SO

THAT AN ACCESSIBLE PLATFORM, MARKET CONFIDENCE

AND WEALTH MAXIMIZATION SCOPE CAN BE ENSURED.


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The Chittagong Stock Exchange (CSE) start itsjourney in 10th October of 1995 .

CSE consists of 70 members representingprofession, trade, commerce and industry of

Chittagong. It is managed by a Board of Directors, comprising

of 12 elected directors and 6 directors to benominated by the Commission.

CSE has a policymaking Body of 24 members, ofwhom 12 are elected and 12 are non-elected.

Introduction


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Overview Of CSE

CSE was formally opened by then Hon'ble Prime

Minister of Bangladesh on November 4, 1995.

Value for people Transparency

Excellence

Harmony Commitment

Integrity


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Vision

Developing a strong capital market in the

country.

It gives its best efforts to develop a balanced

and vibrant capital market through empoweringthe other market participants and the investors.

Aspire a global standard transaction place of

securities and financial product.


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Objectives Develop a strong platform for entrepreneurs raising

capital.

Develop a professional service culture throughmandatory corporate membership.

Increase business turnover

Modernize trading system

Ensure effective relationship management

Achieve high level of confidence & professionalism Engage in product and market diversification

Contribute to capital market policy development

Ensure exchange related quality services


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Responsibilities of Chittagong

Stock Exchange

Establishing listing requirements.

Approval, suspension or removal of listing

privileges of companies.

monitoring listed companies in compliance withlegal regulatory provisions

Permission of dual listing.

Providing the screen based automated tradingof listed Securities.


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Trading Systems in Chittagong

Stock Exchange (CSE) Automated Trading System: Trading has now

become automated, led by the Chittagong

Stock Exchange through the central depository.

Internet Trading Services (ITS): CSE is not

only the pioneer of establishment of nationwide

trading mechanism. CSE introduced internet

Based Trading in May 2004 to enable theremote investors to have trading facilities from

home and abroad directly.


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Trading Systems in Chittagong

Stock Exchange (cont.)

Mobile Trading Services:Mobile trading is a

milestone for the capital market of Bangladesh.

Like many other initiative, CSE has again

played a pioneer role in introducing mobiletrading in Bangladesh.

Over-the Counter Market (OTC):

Favorable issue cost for entrepreneurs

Enhanced visibility through national exposure


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Challenges for CSE

Service at door steps of stock exchange will

enhance the participation of small investors in

the stock market.

CSE has only 4 branches and it has failed toopen new branches in different cities in

Bangladesh.

IPO has always been oversubscribed in

Bangladesh. It indicates that the number of

enlisted securities is not adequate in CSE.


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Challenges for CSE(cont.)

Some stock exchange members also serve asdirectors of listed companies. This can lead tothe chance of insider trading and conflict ofinterest. Insider trading cause wide fluctuationsin the prices of the securities and underminesthe trust of the stock market.

No serious attempt has been taken for makingthe people of semi-urban & rural areas ofBangladesh interested to invest in stockmarket.


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Recommendations

To ensure service at door steps & to increase

the participation of small investors, CSE may

take necessary to open new branches in all the

districts of Bangladesh.

Thorough publicity, Chittagong Stock Exchange(CSE) can encourage & promote the investors

of semi-urban & rural areas of Bangladesh to

invest in the stock market

Government should promulgate macro-

economic policy such as fixation of interest on

treasury securities considering the interest of

stock market of the country.


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Conclusion


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appraisal of cse

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