farhad amin

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Internship report

On

The Activities

Of

Central Depository Bangladesh Limited (CDBL)

Department of

Sharp Securities Limited


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Acknowledgement

At the beginning of this report, I would like to thanks Almighty Allah for giving me ability

to complete this report. Then I would like to take the opportunity to express my gratitude to

my honorable and most favorite supervisorMr. Mohammed Sakhawat Hossain, ACMA,

Assistant Professor, Faculty of Business & Economics, Daffodil International University

who gave me suggestions and guidelines to complete the report. I would like to express

heartfelt gratitude to Sharp Securities Ltd. CEO,_Major Ahmed, Chairman_KM

Nazmul Alam Siddiqui, Director_ Mozammel Haque Bhuiyan, CDBL in charge

Mohammad Bari for support and encouragement to prepare my report. I also wouldlike to express my gratitude to all seniors those who always guide me to the various things

in order to make the report more fruitful.


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Abstract

This study contains knowledge and information through Internship program. This study has

been organized in four Parts. Firstly the study shows the Background of the study .

Secondly the study shows the Overview of Sharp Securities Ltd. part of the study. Thirdly

the study shows the learning part of the study. This learning part portrays the activities of

Central Depository Bangladesh Limited (CDBL) of Sharp Securities Limited. Finally the

study highlights some finings based on the observation. And consequently makes some

recommendations.


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Table of Content

PART TOPIC PAGE

Part-1 Introductory PartIntroduction of the Study 1

Origin of the report 2

Objectives of the Study 3

Scope of the Study 4

Methodology of the study 5-6

Nature of the study

Limitations of the study

Part-2 OVERVIEW OF SHARP SECURITIES

LIMITED

Historical Background of the Company 7

The mission of the company 7

The vision of the company 7

Profile of the Company 8

Values of the company 9

Strategies 9

Facility for Clients 10

Sharp Securities Ltd. Services 11

Department of the Sharp Securities Ltd.

12-13

Growth of the company 14-16

State of fund Transactions & Turnover state 17

BO account opening state 18

Part-3 Learning Part Activities of Central

Depository Bangladesh Limited (CDBL)

About Central Depository Bangladesh Limited 19-21

Account Opening 22


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How can open BO (Beneficiary Owners)

accounts

23

Necessary Documents for open new BOAccount:

23-25

BO (Beneficiary Owners) Account Opening

Terms & Conditions

25-30

CDBL Activities 31-50

Part-4 Findings 51

Recommendation 52

Conclusion 53

Introduction of the Study

This is an internship report which is prepared to get practical knowledge about the

activities of Central Depository Bangladesh Limited (CDBL) Department of a brokerage

house. In a simple word this study is conducted to know about the activities of the Central


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Depository Bangladesh (CDBL) department of specially Sharp Securities Limited, where I

did my internship program.

This study consists of Four Parts. The first part contains the background of the study. This

chapter contains some basic topics such as; this report contains the formal letter, contents

of the report, abstract, origin of the report and scope of the study, objective of the study and

limitation of the study. This Part provides information to the users about the core concept

of the report such as what is my main objective of this study. Finally this chapter contains

some limitations that I have faced during my work period. The second part shows

information about the organization where I have done my work. This chapter contains

information about Sharp Securities Limited such as historical background of the brokerage

house, Mission of the company, Vision of the company, Companys values, strategies,

facilities for the clients, service of the company and growth of the company. It also

contains information about the company clients and nature of the company. Third chapter

is the learning part. This part shows the Central Depository Bangladesh Limited (CDBL)

working process.

Finally Chapter four contains findings, recommendations and conclusion based on the

study.

1

Origin of the Study

The internship program is a mandatory requirement for the students who are graduating

from the B.Com (Hons) program under the faculty of Business & Economics of Daffodil

International University.


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In the internship program I was engaged in a brokerage house named Sharp Securities

Limited for three months period. During this period I have learned about the activities of

the Central Depository Bangladesh Limited (CDBL) Department of Sharp Securities

Limited.

As a result I have decided to write a repot about CDBL procedures of Sharp Securities

Limited from my practical knowledge that I have observed. During this time I also engaged

in various CDBL activities.

2

Objectives of the study

The main objective of the study is to know about the Activities of Central Depository

Bangladesh Limited (CDBL) Department of Sharp Securities Ltd. based on my internship

experience gathered from Sharp Securities Limited (Brokerage House).


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If a work or study is done without specific objectives I think the work would not draw a

meaningful conclusion because I think work without specific objectives is like a ship

without radar. Thats why the study also contains some specific objectives which are

summarized below:

To know about the Central Depository Bangladesh Limited (CDBL).

To know the BO (Beneficiary Owners) Account opening procedure.

To know various types of application for using CDBL work.

To know the various services run by Master Control Application provided by

Dhaka Stock Exchange (DSE).

To know the buying and selling procedure of securities by investors.

To be familiar with BO ISIN application.

To know about the working techniques of CDBL.

To make some recommendations based on my findings.

3Scope of the Study

Although this report mainly emphasizes on the CDBL procurers of Brokerage House based

on my own experiences gathered form Sharp Securities Limited, it also contains a brief

overview of Sharp Securities Limited and its services, operating activities and so more.


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4

Methodology of the study

Nature of the study:

This is mainly an exploratory research. This types of research required more information in

order to make the report effective or meaningful. In order to prepare the assigned internship

report data have been collected from both primary and secondary sources.


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Sources of Data:

1. Primary Sources.

2. Secondary Sources.

1. Primary Data:

Primary Data sources are:

All the staff working in CDBL Department of Sharp Securities Ltd.

Primary Data Collection Method

Conversation with the CDBL in charge and other staff who are working in CDBL

department of Sharp Securities Ltd.

2. Secondary Data

The secondary data, on the other hand, are those which have already been collected by

some one else and which have been collected by others process.

Secondary Data sources are:

Secondary data sources are various corresponding files of the brokerage house and various

related websites.

5

Limitations of the study

The study is performed with an objective to make a through study of CDBL procedure. I

have availed many facilities but faced some obstacle during my study. These obstacles may

be termed as limitation of the study. These limitations are as follows:


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Annual CDBL procedures are a confidential documents or objects to the brokerage

house, so it is very difficult to present the exact format of CDBL procedures of the

brokerage house, (Sharp Securities Ltd.).

As my engagement time was not so long, thats why it was not possible for me to

know all about the Central Depository Bangladesh Limited (CDBL) procedures of

the brokerage house.

The depth analysis has been limited to the extent of information.

As a brokerage house the information that I have collected is not adequate for this

study.

At last, the study has conducted within a very limited time. Therefore, shortage of

time is a major downside for the whole study.

6

PART: 02


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OVERVIEW OF

SHARP SECURITIES LIMITED(Brokerage House)

Sharp Securities Limited

Your dependable partner for Share Trading


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Historical Background of the Brokerage House

Sharp Securities Limited is one of the leading consummate brokerage houses of Dhaka

Stock Exchange Limited. Sharp Securities Limited was established in December 2004

under the Companies Act (Act XVIII) of 1994 as a Private Limited Company.

Mission of the company:

The Sharp Securities Limited is committed to satisfy diverse needs of its clients through an

array of services by using appropriate technology and providing timely service so that a

sustainable growth, reasonable return and contribution to the development of the overall

economy of the country can be ensured with a motivated and professional work force.

Vision of the company:

To become one of the leading Stock Broker of Dhaka Stock Exchange Limited and to playa vital role in the overall development of the stock market.

7

Profile of the Company

Registration of the Brokerage House:

Sharp Securities Limited Brokerage house is registered under the Companies Act (Act

XVIII) of 1994 as a Private Limited Company.


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Head office Contract Address:

Samabaya Bank Bhaban (5th Floor)9/D, Motijheel C/A, Dhaka-1000

02-9513651-4, 02-9513656 (PABX)

02-9561340 (CEO), 02-9567007 (CDBL)Fax: 880-2-9562701, E-mail: [email protected]

Age of the Firm:

7 Years from 2004

Board of Directors:

Mr. Nazmul Alam Siddiqui Chairman

Mr. Syed Golam Wustafa Managing DirectorMr. Mozammel Haque Bhuiyan Director

Mr. M.M. Fazllul Haque DirectorMr. Major Ahamed CEO

Corporate Office Dhaka

Samabaya Bank Bhaban (5th Floor)

9/D, Motijheel C/A, Dhaka-1000

02-9513651-4, 02-9513656 (PABX)

02-9561340 (CEO), 02-9567007 (CDBL)Fax: 880-2-9562701, E-mail: [email protected]

8

Companys Values:

Employees of Sharp Securities Limited (SSL) share certain common values which help to

create a SSL culture. Those are:

The client comes first.

Openness to new ideas and new methods to encourage creativity.


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Quick decision making.

Flexibility and prompt response.

A sense of professional ethics.

Strategies:

To strive for customer satisfaction through quality control and delivery of timely

services.

To review and update policies, procedures and practices to enhance the ability to

extend better services to clients.

To train and develop all employees and provide adequate resources so that

customer needs can be responsibly addressed.

To promote organizational effectiveness by openly communicating company plans,

policies, practices and procedures to all employees in a timely fashion.

To cultivate a working environment that fosters positive motivation for improved

performance.

To increase direct contact with customers in order to cultivate a closer relationship

between Sharp Securities Limited and its clients.

9

Sharp Securities Ltd, Company:

Do business in professional and courteous manner.

Work with our clients to fully understand their needs.

Provide our clients with expert advice (Technical Analysis).


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Give our clients a fair price.

Handle our clients order promptly and accurately.

Provide support, as required, to assure total satisfaction.

Hassle free money deposit and withdrawal.

FACILITIES FOR CLIENTS

BUYING AND SELLING SHARE

OPEN BENEFICIARY OWNERS (BO) ACCOUNT

EDUCATING NEW INVESTORS

SEPARATE TRADING COUNTER FOR OUR VALUED FEMALE CLIENTS

CONDUCT INVESTORS AWARENESS PROGRAM REGULARLY

ONLINE TRADING

10

Sharp Securities Ltd. Services:

BO Account Opening.

Buying and selling share.


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Separate Telephone trading terminal.

Separate trading counter for our valued female customer.

Trade facilities for Non Residence Bangladeshi.

Highly Developed Back office Software. Large Multimedia Trading Screen.

Real Time Online Trading.

Educating new Investors.

Conduct Investors Awareness Program regularly.

Sophisticated Research and Development Cell.

Prompt, Reliable and Friendly Client Services.

Highly Skilled Management.

Well equipped trading house with sophisticated technologies.

11

List of Department of the Sharp Securities Ltd.

CDBL Department.

IT Department.


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Accounts Department and

Trading Department.

IT Department:

Sharp Securities Ltd. has IT department, this department main work is Company CPU,

Software, Hardware related problems solving, and Main server or network problem solves,

which server help and control the overall branches CDBL working process.

Accounts Department:

Account department recoded controls and hold overall company accounts and control,

recorded and holds clients account information. Company all account system recorded by

Tally and manually but clients account recorded by the back office file.

Account department follow the General Accepted Accounting Principle (GAAP) all term

and conditions for creating there Company Balance Sheet.

External Audit: G-kibria Audit firm permanent audit firm. This firm annually auditing the

Sharp Securities Ltd. accounts.

Internal Audit: Internal Audit process done by company Account department in charge

(Mr. Saiful Chowdhury). Internal auditing process done monthly basis.

Company all transaction done by the One Bank Limited.

Company Average turnover is 30 corers.

12Trading Department:

Trading department of the Sharp Securities Ltd. main work is Buy and Sale Clients Share.

Company any clients who open there account in Sharp Securities Limited, He/she any time

Buy or Sale there share by this trading department. Trading department control and help for


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trading. This department gives clients different types information for buy or sale there

shares.

13

GROWTH OF THE COMPANY


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14

Growth of the Company

The company started its journey in August 2005. Since its inception the Company gave

maximum attention to achieve the highest satisfaction of its clients. The company


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management was encouraged seeing the response and enthusiasm of the clients to expand

the company activities within Dhaka. Sharp Securities Limited was the pioneer to start its

operation at Uttara area as Stock Broker in only 200 square feet accommodation. In 02

years time now it has two branches in approximately 2000 square feet accommodation at

North Tower and Uttara Tower respectively. It also opened a Branch at Anannya Shopping

Complex, DOHS Baridhara, Dhaka and another at Surma Commercial Centre, Chaya Toru

01, Lamabazar, Sylher. Three other branches are about to start their operation as soon the

permission would be obtained from DSE and SEC at Dhaka and Sylhet respectively. Sharp

Securities Limited will continue its effort to expand its operation within and outside Dhaka.

The landmark event of the Companys expansion is as follows:

Financial Growth

The company has achieved its financial growth gradually and consistently. It has started its

operation with the authorized capital of 03 (Three) Corer and Paid up Capital of 1.5 (One

and Half) Corer Only. During the year 2008-2009 the company has earned a net profit

which is 50.19% more than that of the previous year and its capital funds stood at Tk 4.71

Corer. Out of this, Tk. 3.75 Corer consisting of paid up capital by shareholders and Tk.

96.71 Lac represents reserves and retained earnings. The Authorized and Paid up Capital of

the Company was increased recently up to 10 Corer and 3.75 Corer respectively.

15

Land mark events: Date of

Getting


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License as Public Limited Company 15 May 05

Registration Number as Stock Broker 11 Jul 05

Getting the CDBL DP Account 07 Aug 05

Date of opening the main office 22 Aug 05

Starting the operation 22 Aug 05

Approval for Uttara Tower Branch 04 Dec 05

Approval for f Baridahara Branch 12 Dec 05

Approval for North Tower Branch 14 Dec 06

Registration Number as Stock Dealer 18 Jun 08

Approval of Sylhet Branch -- 05 May 09

Approval of Hatirpul Branch -- 03 Aug 10

16

STATE OF FUND TRANSACTIONS


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TURNOVER STATE

YEAR BUY SELL TURNOVER2005 205,983,150.00 188,414,022.00 64,845, 857.002006 2,365,963,481.00 2,028,211,973.00 497,543,251.002007 2,365,963,481.00 2,028,211,973.00 4,394,175,454.002008 5,071,218,020.00 4,937,4 71,505.00 10,008,678,775.00

YEAR DEPOSIT WITHDRAWL BALANCE

2005 366,563,582.00 6,661,651.00359,901,931.00

2006 102,209,577.00 67,554,858.00 34,654,719.00

2007 764,436,339.00388,897,318.00

375,539,021.00

2008 992,682,820.00761,700,272.00

230,982,548.00

2009 332,181,537.00

414,586,810.0

0 82,405,273.00

20101,767,648,841.00

4,324,992,849.00

2,557,344,008.00

TOTAL4,325,722,696.00

5,964,393,758.00

1,638,671,062.00


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2009 10, 708,3 95 ,3 44 .00 13 ,370, 042 ,9 05.0024,078,438,249.00

2010 23, 533, 771, 71 8. 00 23, 907,9 52, 515. 00 47,4 41 ,724 ,2 34. 00T OT AL 4 4, 25 1, 29 5, 19 4. 00 4 6, 46 0, 30 4, 89 3. 00

86,485,405,820.00

17

BO ACCOUNT OPENING STATE

Year Number of Clients

2005 - 39112006 - 9332010 - 143402008 - 44182009 - 5 3252010 - 1700

2011 - 319> TOTAL - 30946


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18

PART: 03

Learning Part

The Activities

Of

Central Depository Bangladesh Limited (CDBL)

Department of Sharp Securities Ltd.


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Central Depository Bangladesh Limited

(CDBL)

Central Depository Bangladesh Limited (CDBL) was incorporated as a public limited

company on August 2000 to operate and maintain the Central Depository System (CDS) of

Electronic Book Entry, recording and maintaining securities accounts and registering

transfer of securities; changing the ownership without any physical movement or

endorsement of certificates and execution of transfer instruments. Securities and Exchange

Commission has issued a Certificate to CDBL on December 23, 2003 for starting

depository business as a depository.

A depository is like a bank for shares instead of money. Instead of holding shares in the

form of certificates, investors have accounts in the depository and are able to move

securities and settle stock exchange transactions by an electronic update of their accounts.

CDBL's core services cover the efficient delivery, settlement and transfer of securities

through computerized book entry system i.e. recording and maintaining securities accounts

and registering transfer of securities; changing the ownership without any physical

movement or endorsement of certificates and execution of transfer instruments. The

Central Depository System (CDS) operated by CDBL has proved to be a convenient andreliable means to settle securities transaction. The investor has been freed from the hassles

of physical handling of certificates, errors in paper work and the risks associated with

damaged, lost and forged certificates.


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19

CDBL's operations are carried out in its Main Data Centre which is linked to a remote

Disaster Recovery Centre operating as a backup with data update taking place

simultaneously. Network connectivity to Depository Participants, Issuers, Banks, Stock

Exchanges and Bangladesh Bank is through Front End interfaces accessed by WAN link

and dial-up telephone lines.

Live operations of the CDS commenced with the inauguration of the ElectronicGovernment Securities Registry (EGSR) by the Governor of Bangladesh Bank on 20 th

October 2003. The EGSR also serves as a platform for secondary market sale/purchase as

well as Repo transactions of government securities to commercial banks linked online to

the CDS. Equity market securities dematerialization process i.e. eliminating physical

certificate as record of security ownership by substituting it as an electronic book entry

record in the CDS commenced on 24 th January 2004 with the entry of Square

Pharmaceuticals Limited into the CDS.

Since 14th February 2003 CDBL has been acting as National Numbering Agency for

International Securities Identification Number (ISIN) as partner in Bangladesh of

Association of National Numbering Agencies (ANNA) based in Germany. CDBL is a

member of Asia Pacific CSD Group (ACG) and an associate member of South Asian

Federation of Exchanges (SAFE).


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20

Owners

The Depository Regulation, 2000 requires that the sponsors of any depository are:

a financial institution;

a bank;

a stock exchange;

a body corporate established or formed under any law;

a company listed with any stock exchange; or

any other national or international institution specified by the commission.

Accordingly the stake holders of CDBL, numbering over 103 institutions, are :

Nationalised Commercial Banks; Private Commercial Banks

Foreign Commercial Banks;

Insurance Companies;

Dhaka Stock Exchange;

Chittagong Stock Exchange;

Investment Corporation of Bangladesh;

Listed Companies; and the Asian Development Bank.

This wide spread of ownership demonstrates the support of the financial market in

Bangladesh for the development of a Central Depository System (CDS).


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21

Account Opening

Investors may open an account with any CDBL participant (for an up to date list of

participants.

The participant will request the investor to sign an agreement which will set out the rights

and duties of both the investor and the participant.

The participant will then open an account for the investor at CDBL.

Normally the account will be in the name of the investor. If the participant is going to mix

one investor securities with another in an omnibus account then this must be specifically

stated on the agreement.

Where the account is in the name of the investor then the Law provides that the account

holder is a member of the company even though his securities are dematerialized.

The participant is required (under the regulations) to provide statements on at least a

monthly basis if there are movements on the account. Even if there are no movements the

participant must provide a quarterly statement.


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22

How one can open BO (Beneficiary Owners) accounts:

BO Account Opening

To open a BO Account, you have to fill the necessary fields in the BO Account Opening

Forms. First you have to fill up the Customer Account Information Form. If account holder

wants to give power of attorney to anyone, s/he has to fill the Power of Attorney form. And

lastly if account holder wants someone to be the nominee of the account s/he has to fill the

BO Account Nomination Form.

Note: BO account original form attach with Appendix.

Necessary Documents for opening new BO Account:

1) Single Account:

Photocopy of National ID (Both Side) / Bank Certificate (with 3 months statement).

(Signed by Account holder)

03 Copies Passport size Photographs of Account Holder. (Signed by Account

holder).

02 Copies Passport size Photographs of Authorized Person/Power of Attorney.(Attested by Account Holder also signed by nominee)

Photocopy of National ID of POA (Attested by Account Holder also signed by

POA).

02 Copies Passport size Photographs of Nominee (Attested by Account Holder also

signed by nominee).


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Photocopy of National ID of Nominee (Attested by Account Holder also signed by

nominee).

(All signatures should be the same as in all the documents).

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** For link account you have to attach photocopy of existing BO Account

Profile/acknowledgement

2) Joint Account:

All above documents of Single Account. 03 Copies Passport size Photographs of Joint Holder.

Photocopy of National ID of Joint Holder.

** In case of joint account the second holder of course has to be NRB. And he must

provide his passport and visa photocopy.

3) NRB Account:

Same as above. In addition,

Photocopy of Passport (1-7 pages).

Photocopy of work permit/residence permit.

Bank certificate of FC account

** It is to be noted here that for the NRB account, appointing Power of Attorney

holder is must


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24

4) Company Account:

Trade License.

TIN Certificate.

Photocopy of MOU.

Board resolution regarding the opening of BO Account and delegating authority to

operate the BO Account on behalf of the Company

03 copies passport size photographs and National ID of the Authorized Person.

Bank Certificate (Bank Account should be in the name of the Company).

BO (Beneficiary Owners) Account Opening Terms & Conditions -Bye

Laws 7.3.3(c)

In consideration of Sharp Securities Ltd. (the CDBL Participant) opening the account

providing depository account facilities to clients have signed the BO Account Opening

form as token of acceptance of the terms and conditions set out below.

1. Clients agree to be bound by The Depositories Act 1999. Depositories Regulations

2000, the depository (User) Regulations 2003. And abide by the Bye Laws and

Operation Instructions issued from time by CDBL.

2. CDBL shall allocate a unique identification number to clients (Account Holder

BO ID) for the CDBL Participant to maintain a separate Account for me/us,

Unless I/we instructs the CDBL Participant to keep the securities in an Omnibus

Account of the CDBL participant. The CDBL Participant shall however ensure


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those Client securities shall not be mixed with the CDBL participants own

Sureties.

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3. Clients (I/we) agree to pay such fees, charges and deposits to the CDBL Participant,

as may be mutually agreed upon, for the purpose of opening and maintaining

my/our account, for carrying out the instructions and for rendering such other

services as are incidental or consequential to my/our holding securities in an

transaction through the said depository account with the CDBL Participant.

4. Clients shall be responsible for :

(a) The veracity of all statement and particulars set out in the account opening form,

supporting or accompanying documents,

(b) The authenticity and genuineness of all certificates or documents submitted to the

CDBL Participant along with or in support of the account opening form or

subsequently for dematerialization.

(c) Title to the securities submitted to the CDBL Participant from time to time for

dematerialization.

(d) Ensure at all time that the securities to the credit of clients account are sufficient to

meet the instructions issued to the CDBL Participant for effecting any transaction/

transfer.


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(e) Informing the CDBL Participant at the earliest of any changes in clients account

particulars such as address, bank details, status, authorizations, mandates, nomination,

signature etc.

(f) Furnishing accurate identification details whilst subscribing to any issue of

securities.

26

5. Clients shall notify the CDBL Participant of any changes in the particulars set out

in the application form submitted to the CDBL participant at the time of opening

the account or furnished to the CDBL Participant from time to time at the earliest.

The CDBL participant shall not be liable or responsible for any loss that may be

caused to clients by reason of clients failure to intimate such change to the CDBL

participant at the earliest.

6. where clients have executed a BO Account nomination Form

(a) In the event of client death, the nominee shall receive/draw the securities

held in client account.

(b) In the absent, the nominee so authorized remains a minor at the of client

death, the legal guardian is authorized to receive/draw the securities held in

client account.

(c) The nominee so authorized, shall be entitled to all client account to the

exclusion of all other parsons client heirs, executors and administrator and

all other persons claiming through or under client and delivery of securities

to the nominee in pursuance of this authority shall be binding on all others

persons.

7. Clients may at any time call upon the CDBL participant to close client account with

the CDBL participant provided no instructions remain pending or unexecuted and

no fees or charges remain payable by clients to the CDBL participant. In such event


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client close client account by executing the account closing Form if no balances are

standing to client credit in the account. In the case any balances of securities exist

in the account, the account may be closed by us in one of the following ways.

27

By dematerialization of all existing balances in clients account.

(a) By transfer of all existing balances in client accounts to one or more clients

others account held with and other CDBL Participants.

(b) By dematerialization of a part of the existing balances in clients account any

by transferring the rest to one or more of clients others account with any

other CDBL participants.

8. CDBL Participant covenants that it shall

(a) Act only on the instructions or mandate of the account Holder or that of

such persons as may have been duly authorized by the Account Holder in

that behalf.

(b) Not affect any debit or credit to and from the account of the Account Holder

without appropriate instructions from the account older.

(c) Maintain adequate audit trial of the execution of the instructions of the

account holder.

(d) Not honor or act upon any instructions for effecting any debit to the account

of the account holder in respect of any securities unless

Such instructions are issued by the account holder under his/her signature or that of

his/her constituted attorney duly authorized in that behalf.


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The CDBL participant is satisfied that the signature of the account holder under

which instructions are issued matches with the specimen of the account holder or

his constituted attorney available on the records of the CDBL participant.

The balance of clear securities available in the Account Holders account is

sufficient to honor the account holders instructions.

28

(e) Furnish to the account holder a statement of account at the end of every

month if there has been even a single entry or transaction during that month,

and in any event once at the end of each financial year. The CDBL

participant shall furnish such statement at such shorter periods as may berequired by the account holder on payment of such charges by the account

holder as may be specified by the CDBL participant. The account holder

shall scrutinize every statement of account received from the CDBL

participant for the accuracy and veracity there of and shall promptly bring to

the notice of the CDBL participant any mistakes, inaccuracies or

discrepancies in such statement.

9. The CDBL participant shall be entitled to terminate the account relationship in the

event of the account holder:

(a) Failing to pay the fees or charges as may be mutually agreed upon within

period of one month from the date of demand made on the behalf.

(b) Submitting for dematerialization any certificate or other documents of title

which are forged, fabricated, counterfeit or stolen have been obtained by

forgery or the transfer where of is restrained or prohibited by any direction,

order or decree of any court or the Securities and Exchange Commission.

10. Declaration and Signature


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Clients here by acknowledge that I/we have read and understood the aforesaid

terms and conditions for operating Depository Account (BO Account) with CDBL

participant and agree to comply with them.

29

Applicants Full Name Signature with Date

First Applicant

Second Applicant

Third Signature Ltd. Co.

Only


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30

CDBL Activities:

Central Depository Bangladesh Limited (CDBL) department provided deference types of

activities, these activities run by Master Control Application. These Master ControlApplication provided by Dhaka Stock Exchange (DSE). These Master Control

Applications are shown given below.


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31

1) Beneficiary Owner Account Maintenance System.

2) BO-ISIN inquiry.

3) Corporate Action

4) Database Administration.

5) Demate Depository Participate (DP).

6) End of the day Scheduler.

7) Freeze and Suspension.

8) Host Report Manager.


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9) Initial Public Offer (IPO).

10) Lending and Borrowing.

11) Master Files.

12) Master Reports.

13) Off Market System.

14) Operator Console.

15) Pledging and Unpledging.

16) Dematerialization.

17) Rematrialization.

18) Request Reports.

19) Settlement Transfer.

20) Tariffs and Billing.

21) Transfer Files/Update Database.

22) Transfer and Transmission and

23) Buying and selling Master Control Applications.

Above 23 Master Control Application are uses for running CDBL department. These 23

Master Control Applications provided by Dhaka Stock Exchange.

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Sharp Securities Ltd. use only 7 Master Control Applications (which are shown above)

for run there CDBL department and these Master control application I also learn in my

internship period. These are

1) Beneficiary Owner Account Maintenance System.

2) BO-ISIN Inquiry.

3) Demate Depository Participate (DP).


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4) Host Report Manager.

5) Operator Console.

6) Settlement Transfer.

7) Transfer and Transmission.

Note: Below 7 master control applications I also learn in my internship period.

1) Beneficiary Owner Account Maintenance System:

Beneficiary Owner Account Maintenance System holds other applications. These are

a) BO (Beneficiary Owner).b) POA (Power of Attorney).

c) BO link.

d) Closure.e) Cancel Closure Request.

f) Inquire Closure request.

g) Signature.h) Acknowledgments.

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BO (Beneficiary Owner):This application holds clients difference information. Howcan run this application are shown given below:


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Setup Option:


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This application first activity is setup (Server offline mode) clients all information

(Example: Clients Name, Fathers Name, Mothers Name, Bank name, Bank Branches

Name, Bank Account Number, Clients code number which provided by CDBL, ClientsLocal code number Which Provided by Brokerage House, Nominees Name, Photos,

Phone Number, Passport Number, Power of attorney Information, Mail Address, Home

Address and others Information). Because if setup on server offline mode so modify

will be easy. If setup application run server online mode so modify will not be directly.

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Modify Option:


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After uploading modify will be online mode, because modify online mode transfer

clients all information to the main server directly. If modify in offline mode clients will

not found there all information in CDBL department. So there modify in online mode.

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Delete Option:


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Delete option use for delete clients information because when setup clients

information unfortunately did some mistake. Under one hour this mistake will be

solved by using delete option. Delete option use on offline mode because setup was

offline.

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Inquire Option:


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Inquire option use for justify above setup option, all information transfer to the main

server by this inquire option. Inquire option use on online because clients all data which

he/she include to BO form transfer to the main sever.

Upload Option:

By online uploading clients all information transfers to the CDBL main server, which

server control by Dhaka Stock Exchange. This application runs after finishing the setup

activities.

Help Option:

Help option help how can use above Options.

a) Power of attorney:

This application use for adding all the information power of attorney. Power of

attorney use applicant account. This person any time use the BO applicant account, this

types person withdraw the client money from there account or deposit client money.

How can run this application is shown given below:

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Setup Option:


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This application first activity is setup (Server offline mode) Power of attorney all

information (Example: Power of Attorney Name, Photos. Because if setup on server

offline mode so modify will be easy. If setup application run server online mode so

modify will not be directly.

Upload Option:

By online uploading Power of Attorney all information transfers to the CDBL main

server, which server control by Dhaka Stock Exchange. This application runs after

finishing the setup activities.

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Modify Option:


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After uploading modify will be online mode, because modify online mode transfer

Power of Attorney all information to the main server directly. If modify in offline mode

CDBL department will not found Power Of attorney all information in CDBL

department. So there modify in online mode.

Delete Option:

Delete option use for delete Power of attorney information because when setup Power

of attorney information unfortunately did some mistake. Under one hour this mistake

will be solved by using delete option. Delete option use on offline mode because setup

was offline.

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Inquire Option:


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server by this inquire option. Inquire option use on online because power of attorney all

data which Clients include to BO form transfer to the main sever.

Help Option:


b) BO (Beneficiary Owner) Link:

This application use for include linked account which clients transfer there account

others brokerage house from the Sharp Securities Ltd. account or transfer there accounts

Sharp Securities Ltd. to others Brokerage houses.

How can run this application is shown given below:

Setup Option:

This application first activity is setup (Server offline mode) BO link account Holder all

information (Example: Clients Name, Fathers Name, Mothers Name, Bank name,

Bank Branches Name, Bank Account Number, Clients code number which provided by

CDBL, Clients Local code number Which Provided by Brokerage House, Nominees

Name, Photos, Phone Number, Passport Number, Power of attorney Information, Mail

Address, Home Address and others Information). Clients BO eight digit code include

which given from others brokerage house. If setup on server offline mode so modify

will be easy. If setup application run server online mode so modify will not be directly.

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Upload Option:


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By offline uploading clients all information not transfers to the CDBL main server,

which server control by Dhaka Stock Exchange. When all activity of BO link account

cleared then all information transfer to the main server. This application runs after

finishing the setup activities.

Modify Option:

After uploading modify will be offline mode, because modify offline mode not transfer

clients all information to the main server directly.

Delete Option:

Delete option use for delete clients information because when setup clients

information unfortunately did some mistake. Under one hour this mistake will be

solved by using delete option. Delete option use on offline mode because setup was

offline.

Inquire Option:


server by this inquire option. Inquire option use on offline mode.

Help Option:


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c) Closure:


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Closure request application use for close clients account. When clients account has not

sufficient balance or others cause use this application for close the clients account.

d) Cancel Closure Request:

This application use for withdraw a closure request within short duration of time. When

CDBL department was found Clients has sufficient balance.

e) Inquire Closure Request: Inquire closure request inquire closure information

either the specific code is either exist or not.

f) Signature: this application uses for toke the all clients signature which signature

writes on BO from. When he/she withdraw there balance or deposit there balance

by check this time need this specimen signature.

Setup Option:

This application first activity is setup (Server offline mode) Clients, Nominee and

Power of attorney Signatures. Because if setup on server offline mode so modify will

be easy. If setup application run server online mode so modify will not be directly.

Delete Option:

Delete option use for delete clients, Nominee or power of attorneys signature because

when clients, Nominee or power of attorney write wrong signature or unfortunately did

some mistake when he/she write his/her signature on BO form. Under one hour this

mistake will be solved by using delete option. Delete option use on offline modebecause setup was offline.

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g) Acknowledgment:

This application main advantage is that all information find here from first to last. If

BO code closed all information available in here.


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2) BO (Beneficiary Owner) ISIN: BO ISIN application contain two

fields

A. BO ID-ISIN

B. ISIN

A. BO ID-ISIN:

This BO ID-ISIN shows each number of clients contains different company number of

share. Example: Clients A contain- United Airways = 1000 shares

AB Bank Ltd = 200 shares

This application search clients number of companies share by

1) BO ID (Each account holder contain BO ISIN)

2) Search by Name.

3) Or Local Code.

This application shows clients difference information, which helps for clients share trading.

These are shown given below:

a) ISIN- ISIN is on type of clients code which provided by Dhaka Stock Exchange.

b) ISIN description- Contain companies short Name.

Example: 1) United Airways- Short Name- UnAir

2) Arab Bangladesh Bank Ltd. - Short Name- AB bank Ltd.

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c) Current Balance- Contain clients each number of Company current balance.

Example: AB Bank Ltd. contain 200000 current balance of Client-A.

United Airways contain 60000 current balance of Client-A.


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d) Free Balance- By this free balance client any time can buy or sale there shares in

market.

e) Frozen balance- There clients some fixed amount are frozen by Dhaka Stock

Exchange, which amount clients cant use for buy or sale.

f) Lock in balance: until a fixed time number of Share Company lock in clients some

balance. Which balance clients cant use for buy or sale. After fixed time clients

buy or sale share in lock in balance.

B. ISIN: This application shows each number of companies contains which number of

clients. Example: a) United Airways contains 5000 share holders in Sharp Securities

Ltd.

b) AB Bank Ltd. contains 2000 share holders in Sharp

Securities Ltd.

This application run difference type selection criteria for searching companies numbers

of share holders. Selection Criteria are shows given below:

a) Exchange ID:10 (DSE code)

b) ISIN Alpha code.

c) Short Name of Company.

d) Status: Active

e) Issuer ID:

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3) Demate Depository Participant (DP):


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Here Demate share means papers share. By using this Demate Depository Participant

application clients transfer their DP shares to the online trading. Here clients all DP

share information transfers to the online.

4) Host Report Manager:

All information of the market is gathered in Host Report Manager Application. By this

application CDBL department of Sharp Securities Ltd. know which number of shares today

sale or buy under Sharp Securities Ltd. brokerage house. All though by this application to

know yesterday and 2006 to up which number of shares sale or buy, which number of

DEMAT share in available, which company IPO (Initial Public Offer) are recently coming

in share market.

5) Operate Control: Operate control application use for update report.

Upload report are uploaded by list application suppose buy report and sale report.

By this application known which number of shares buys today, which numbers of

share sales today? All buy and sale information uploaded by this Operate control

application.

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6) Settlement Transfer: Settlement Transfer application contains two

fields.


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a) Pay in Transfer.

b) Pay out Transfer.

a) Pay in Transfer: By this application Sharp Securities Ltd. know today which

numbers of share sell by this brokerage house. Then all selling share transfer to

the Dhaka Stock Exchange (DSE) by using Pay in Transfer application.

b) Pay out Transfer: When Pay in shares is mature Dhaka Stock Exchange (DSE)

transfers all mature shares to the Central Depository Bangladesh Ltd. department

of Sharp Securities Ltd by using Pay out Transfer application. And Sharp

Securities Ltd. CDBL department collect all mature shares by using Pay out

Transfer application.

Example: A category share mature will be 3 or 4 days after Pay in Transfer

process.

Upload: By uploading process all mature share distributed to the share holders

account.

Upload Failure Report: If any share holder of Sharp Securities Ltd. has not A

category share but unfortunately Dhaka Stock Exchange (DSE) send few amount

of A category mature share to this client account so CDBL department of Sharp

Securities Ltd. show Failure Report because this client has not A category share.

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7) Transfer and Transmission:

Transfer and Transmission application contains three fields.


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a) Transfer.

b) Ownership Change.

c) Transmission.

a) Transfer: Clients by using this application transfer their share to others brokerage

house. If share transfer so, this clients can not use his/her account which he/she

opened under Sharp Securities Ltd. brokerage house. He/she tread their all

transaction under newly opened account to others brokerage house.

b) Ownership Change: Clients by using this application can gift their few numbers of

shares to others people (Like friends, brothers, sisters, father or others). This

number of share which he/she gifted transfer to the new account holder. So here

ownership will be changed.

c) Transmission: Clients by using this application can transfer their all company share

to others brokerage house, where he/she open his/her new BO account.

Above 7 Master Control Application use Sharp Securities Ltd. for their CDBL department.

Although they use others application if they needs. Some application use under one month,

some use under 3 months etc.

Above all master control application CDBL department uses if they needs.

Note: Above 7 master control application I also learn in my internship period.

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Trade by electronic securities TESA Broker Server application


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DSE (Dhaka Stock Exchange) TESA Broker Server application provided by the DSE. This

server connected with DSE main server with Sharp securities server. TESA server

application under has other four functions. These are

1) Broker Office or Corporate Office.

2) Hierarchy.

3) Authorization.

4) Client Registration

1) Broker Office (Corporate Office): Corporate office controls the

others branches trading. This connected with the corporate server.

2) Hierarchy: This application shows which number of branches personal

computer which use for trading are connected with corporate server. If any

branches personal computer hank, corporate server using this application by logoff

application for running the hank PC.

Example: SRPBroker- PC: NO SRPTRDR01

SRPBroker- PC: NO SRPTRDR02

SRPBroker- PC: NO SRPTRDR03

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3) Authorization: This application performs after trading. By using this

application company corporate branch know which branches and which number of

personal computer (PC) how much trade today.

Example: PC No-1 trade- 20, 00,000

PC No-2 trade- 15, 00,000

4) Clients Registration: This application contains Client Code number, Client

Name, Trade Volume

This application mainly uses for clients Buy/Sell amount control. This application

control by corporate branch. If any clients want to give 500,000 tk limit so he/she must

be inform to the corporate branch. He/She can not buy/sell his/her shares above their

limit amount. Suppose his/her account have not sufficient balance Example: He/She

account have 200,000tk but he/she give limit 500,000 in this situation he/she can buy or

sell under his/her given limit amount. In this propose he/she must be pay interest for

there extra amount, which amount is not hold his/her account.

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Part-4


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1 Findings:

The following findings have been identified throughout the studies which are summarized

below:

1. Sharp Securities Ltd. Beneficiary Owner Account opening charge is Tk 1200 which

charge is higher then other brokerage house.

2. Annual charge of the clients accounts is Tk 500. This charge is fixed by Dhaka Stock

Exchange (DSE).

3. Sharp Securities Limited provides loan facilities to its investors which is one fourth of

individual investors invested amount which is below the loan amount limit

recommended by Dhaka Stock Limited ( 1:2)

4. Share buy charge is 0.5% but online trading charge is 0.55% which is higher than the

charge applied by other brokerage houses.

5. Share sale charge is 0.5% which is also higher than the charge applied by other

brokerage houses.

6. Its account opening form is more complex and lengthy.

7. Maximum employees are not very much trained up to provide prompt online services.

8. Sharp Securities provides information to its clients about their investment portfolio.

9. Its online server maintaining system is not good as a result its computers become hang

frequently while working with these.

10.National ID card is a must to open a BO account that creates problem for some

prospective clients as a result number of clients decreased.

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2 Recommendations:

The following recommendations have been made based on the findings which are

summarized below:

1. Company should decrease its account opening fee to attract more clients.

2. It can sanction more loan amount to its clients so that they can invest more in different

shares and securities.

3. It should make its account opening form easy to understand but worthy for its purpose.

4. It can reduce share buying and selling charge at some extent to attract more clients.

5. Corporate Office IT Department should check its server system on a regular basis (at

least once in a week) to ensure smooth service to its clients.

6. Employees should be properly trained up to provide better services to its clients.

7. It can require photocopy of passport or driving license as an alternative of National Id

card to open a BO account.

8. It has introduced on line trading system with the collaboration of Stock

Bangladesh.Com (a well known online DSE share market related company), so, by

giving advertisement Sharp Securities Ltd can invite the people who live outside of

Bangladesh but are interested to invest here through online trading system.

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3Conclusion:


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In past three months I have gathered many experiences in my internship period. It was

challenging and encouraging. It will help me in my job life.

I want to say Sharp Securities Limited company is well known company from others

brokerage house. It will help to increase economic growth of our country and it will help to

reduce our unemployed problems by share business. Every person has lack, so he has to

overcome it. As I said Sharp Securities Limited has few problems, but I hope they will

overcome it.

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Reference:


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Retrieved fromwww.google.com

Office manual and prospectus of Sharp Securities Ltd.
http://www.google.com/http://www.google.com/http://www.google.com/