WELCOME TO OUR PRESENTATION

We are…..

I. Md. Azizur Rahman (16131).

II. Md. Delwar Hossain (16149).

III. Fahmida Munmun (16160).

IV. Asma Arifa (16164).

V. Sakib Hasan (16165).

VI. Hosni Jahan (16174).

VII. Tunisha Chakma (16180).

VIII. Md. Tamij Ahammed (16252).

IX. Md. Tanvir Ahmed Kalince (16254).

X. Tahasin Reza Khan (15083).

XI. S. K. Rashed Ahmed (14147).

ITS GROUP “E”.

WE WILL DISCUSS ABOUT “CHITTAGONG

STOCK EXCHANGE” (CSE).

Chitta-gong Stock Exchan-ge.

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Background of CSE.CSE is the second stock exchange of Bangladesh.The founder members approached the Bangladesh

Government in January 1995 for CSE.CSE obtained the permission of the Securities and

Exchange Commission on February 12, 1995 for its operation.

CSE began its journey at 10th October of 1995 .CSE began its operation through the cry-out trading

system .CSE promised to create a state-of-the art bourse in the

country.CSE was formally opened by then Honorable Prime

Minister of Bangladesh on November 4, 1995.

The mission of CSE is to create an effective, efficient and transparent market of international standard to serve and invest in Bangladesh in order to facilitate the competent entrepreneurs to raise capital and accelerate industrial growth for overall benefit of the economy and keep pace with the global advancements.

MISSION OF CSE

Develop a strong platform for entrepreneurs raising capital;Provide a fully automated trading system with most modern amenities to ensure: quick, easy, accurate transactions and easily accessible to all;Undertake any business relating to the Stock Exchange, such as a clearing house, securities depository center or similar activities;

OBJECTIVES OF CSE

Develop a professional service culture through mandatory corporate membership;

Provide an investment opportunity for small and large investors;

Attract non-resident Bangladeshis to invest in Bangladesh stock market;

Collect preserve and disseminate data and information on stock exchange;

Develop a research cell for analyzing status of the market and economy.

MILESTONES OF CSEDate Events

12th February, 1995. Bangladesh Government approved CSE.

1st April, 1995. Incorporated as a limited company.

10th October, 1995. Floor Trading started.

1st January, 1996. Became corresponding member of World Federation of Exchanges (Former FIVB).

Date Events2nd June, 1998. First bourse to automate the

nationwide trading system.

1999. Established CSE Investor Protection Fund.

16th January, 2000. Convened SAFE.

26th January, 2004. Sponsored Central Depository Bangladesh Ltd. (CDBL).

30th May, 2004. Internet Trading Service opened.

4th July, 2004. Over- the-Counter market opened.

CSE is a not-for-profit public limited company. CSE has a separate secretariat independent of policymaking Board which comprises of brokers and non-brokers directors with equal proportion to ensure the transparency.CEO is the head of this board.CSE activities are regulated by it’s own regulations and by laws along with the rules, orders and notification of the SEC.

LEGAL BASIS OF CSE

REGULATORY STRUCTURE OVERVIEW

Members

Chittagong Stock Exchange

Securities and Exchange Commission

Ministry of Finance

Parliament

ORGANISATION STRUCTURE

General Body

CEO

Committees

CEO in Committee

Finance & Administrat

ion

Listing, Marketin

g & Educatio

n

Market Operati

on

Clearing, Settlement &

DP

Systems

Research, Corporate Development & Information

There are 24 members in the policymaking board of CSE. 12 of them 12 are elected and 12 are non-elected. This Board comprises of one President, three Vice Presidents, 19 Directors.

They board members are….. Mr. Fakhor Uddin Ali Ahmed

President Mr. Al Maruf Khan,FCA

Vice-President Mr. A.Q.I. Chowdhury,OBE

Vice-President

BOARDS OF DIRECTORS

Mr. Tareq Kamal Vice-President

Mr. Abu Sayed Md. Shahidullah Director

Mr. ASM Nayeem,FCA, FCCADirector

Mr. Bijan ChakrobortyDirector

Mr. Mirza Salman IspahaniDirector

Mr. M.K.M. MohiuddinDirector

Mr. Md. MofizuddinDirector

Mr. Mohammed Mohiuddin, FCMADirector

Mr. Nasiruddin Ahamed ChowdhuryDirector

Prof. Abu AhmedDirector

Dr. Abul K. A. MubinDirector

Mr. Aftabul Islam, LLB, FCADirector

Mr. Amir Humayun Mahmud ChowdhuryDirector

Mr. Anis A. KhanDirector

Mr. Farooq SobhanDirector

Mr. Kutubuddin AhamedDirector

Mr. Mamun RashidDirector

Mr. Md. Sarwar-E-AlamDirector

Dr. Moinul Islam MahmudDirector

Mr.Yussuf Abdullah Harun, FCADirector

Dr. Zaidi SatterDirector

Professor Dr. Mohammed Abdullah MamunCEO & Director

CEO Function of CEO & various departments: The System department: Deals with information technology. Clearing & Settlement department: Deals with various kinds of delivery. Market operation department: Deals with various kinds of monitoring & dissemination.

MANAGEMENT

Listing, Marketing & Educational department:

Arrange training & monitor information.

Finance & Administration department:

Deals with financial & administration side.

Research & Information department: Deals with research & public

relations.

Trading system CHITTRA. Order matching mechanism: Method-1: Orders are sorted and matched with opposite orders of the best price. Method-2: Orders are queued for matching at a specified time at a single price.

TRADING

Limit order: The most frequent order that has time limit. Good till cancelled(GTC): Remains in the system for a period of time. Good for day(GFD): Remains in the system for one day. Good till date(GTD): Remains in the system for a specific number of days.

TRADING ORDERS

The following table shows the standard upward and downward price limit over the previous day’s market price :

REGULATIONS REGARDING PRICE

FLUCTUATIONS

Previous day’s per share market

price

Limit

Up to BDT 100 15% but not exceeding BDT 12

Above BDT 100 up to BDT 300

10% but not exceeding BDT 20

Above BDT 300 up to BDT 500

7.5% but not exceeding BDT 30

Above BDT 500 up to BDT 1000

5% but not exceeding BDT 40

Above BDT 1000 3% but not exceeding BDT 50

The opening price of a security shall be the price at which maximum number of securities is matched. The closing price of scripts are computed on the basis of weighted average price of all trades in the last 30 minutes. During the last 30 minutes, the weighted average price of maximum 50 number of trades. The opening price of a security shall be treated as closing price.

COMPUTATION OF OPENING & CLOSING

PRICE

It means a price control mechanism. Price limit on the securities trades of ‘A’ ‘B’ ‘G’ & ‘N’ category companies. Here is the guideline for price limit:

PRICE LIMIT

NO

Previous day’s per share market

price

Limit

1. Up to Tk. 200 20% but not exceeding Tk.35

2. Tk. 201 to Tk.300 17.5% but not exceeding Tk.75

3. Tk. 500 to Tk.1000 15% but not exceeding Tk.125

4. Tk. 1001 to Tk.2000 12.5% but not exceeding Tk.200

5. Tk. 2001 to Tk.5000 10% but not exceeding Tk.375

6. Tk. 5001 and above 7.5% but not exceeding Tk.600

Price limit will not be applicable for: There is no Price limit for Z category companies. A newly listed securities is allowed for free trade for first 5 consecutive market days. Free trade is allowed on the subsequent trading day of receiving price sensitive information. Free trade is allowed on the first trading day subsequent to the second date.

INAPPLICABILITY OF PRICE LIMIT

Focuses on volatile trading activities and settlement failure additional trade exposureAs per CSE regulations 2000 the rate of depositing the members margin with the clearing house on the additional trade expposure are as follows-

MARGIN REQUIREMENTS WITH CSE

ADDITIONAL TRADE EXPOSURE MEMBERS MARGIN RATE

Above tk one crore but not exceeding tk two crore

@20%

Above tk 2 crore but not exceeding tk 3 crore

@30%

Above tk 3 crore but not exceeding 5 crore @50%

Above tk 5 crore @100%

Transparency; Internet trading system; Visibility; Short settlement period; Facility to the listed companies to broadcast their corporate announcements; Very competitive low listing fees.

BENEFITS OF LISTED COMPANY IN CSE

CSE considers both the criteria of the companies and the sufficiency of public interest. However , the rules and regulations regarding listing are given below:

1. The company shall be public limited under the company act 1994.

2. Minimum capital should be $10 million.

3. Share subscription must be by at least 250 applicants.

However , the total listing fee shall be minimum of tk. 10,000 and maximum 2,000,000.

THE CRITERIA FOR LISTING

Cancellation of listing criteria are given below: If the company fails to comply with the requirements of any of CSE listing regulations. If the CSE focuses on the interest of the investors. When the company fails to pay any penalty or any dues to CSE for 2 years. If company fails to declare dividend or bonus.

DE- LISTING OF THE COMPANY

When fails to hold AGM for continuous periods of 3 years.

Company gone into liquidation either voluntarily or court order.

If company fails to pay annual list fee for 2 years.

If securities are quoted below 50% of face value for 3 calendar years.

In April 2002, CSE had developed a cell named investor information cell(IIC) dedicated exclusively to resolve any kind of query or produce any kind of information that an investor may require rerated to the capital market. It receives queries and complaints over telephone, fax messages, e-mails, correspondences and physical visits. Since its inception the IIC has developed a good relation with the investors by responding to a number of queries and complaints from home and abroad . The cell also resolved investors complaints against member firm and listed companies .It has earned the trust of investors as a help centre.

CSE INVESTOR INFORMATION CELL(IIC)

If the broker fails to meet an obligation to you arising out of stock exchange transaction or if it is unable to fulfill its engagement the client has the right to lodge a complaint with the exchange against such default . But the time limit for lodging complaint is within a period of 60(sixty) days from the date when such default arose. The defaulters committee of CSE shall hear both the parties and recommend the board for necessary action . The board may declare a broker as defaulter . For its failure to meet the obligation towards the client within the time limit decided by the board.

LODGING COMPLAINT AGAINST BROKER

What protects the client if the broker company becomes insolvent or it goes winding up? That is why the CSE investor protection fund exist. The CSE ,in collaboration with at member companies established CHE investor protection findin1999 to compensate within define limit ,the claims of the client against defaulting broker. You the investor, pay no fees for getting protection of the fund. Coverage is automatic when you open an account with a CSE member . However you must lodge the claims to the trustees within 6 months from the date of declaring defaulter of the member.

CSE INVESTORS PROTECTION FUND

The process of opening an account with representative (Depository participant) is similar to the opening of a bank account. You require to sign an agreement with agent which will set out the rights and duties of the both you and the exchange. The agent will maintain your securities account balances to you the status of your holding from time to time.

OPENING OF ACCOUNT

The introductory offer prices are as follows:

FEES FOR ACCOUNT OPENING

Account opening charges Tk 250 inclusive of Tk 100 as adjustable amount

Demat charges Tk .0004, minimum Tk 7 and transportation charge Tk 30

Remat charges Tk .15 minimum Tk 110

Transaction charges Tk .15 minimum Tk 7

Annual account maintenance fee

Tk 300

Statement of account 0

Billing cycle End of month

Closure fee Tk 50

CSE maintain an effective surveillance to detect and prevent unethical, unusual and illegal practice in the market. when any unusual market action occurs it is reported to the manager, compliance and surveillance.

MARKET SURVEILLANCE AND COMPLIANCE

MONITORING

CSE put in place a thorough risk management system which is regularly monitored to premt market failures. The department conducts investigation of any act of member firm or listed companies, as the case which may be deemed to violate the rules and regulations of CSE or SEC and gather all evidence concerning the said acts to pass it to the relevant committee.

ENFORCEMENT

A number which measures the relative price level of securities against a base date. Base price index is 1000 at CSE

STOCK PRICE INDEX

CALCULATION OF INDEX

Day Value of portfolio Index

Day 1(base day) 20000 TK 1000

Day 2 21000 TK 1050

Sample index: Some active share. All share price index: All share of market. Weighted index: Value weighted: Based on proportion of market share in terms of capitalization. Equal weighted: Weighted value of all share. Price weighted : Weighted value of share based on price. CSE30 index: some active share which pass some criteria.

CLASSIFICATION OF INDEX METHODS

Must be listed with the CSE ltd. Must hold AGM regularly. Market capitalization must be TK 200 million. Must have positive revenue reserve/ retained earnings. Paid dividend in any of the last 2 years. Company failing to pay the listing fees and/or penalty imposed under the listing regulations of CSE for a period of two years will not be considered.

BASIC CRITERIA IN CASE OF CSE30 INDEX

Higher net assets value per share. Higher rate of earning per share. Higher rate of dividend. Higher dividend yield. Larger number of shareholder. Higher liquidity in terms of trading day. Regular payment of listing fees.

SELECTION CRITERIA

In the Chittagong Stock Exchange a Corporate body must have a minimum issued and paid-up capital of BDT 2.5 million to become a member.Individuals may apply and receive membership on condition that they form a corporate body within a given time , usually 3 months.

MEMBERS

The eligibility criteria for the membership are given below:A corporate body with a minimum paid up capital of BDT 2.5 million.Any partner or director thereof as the case may be is\has notLess than 21 years of age;Bankrupt;Person of unsound mind;

ELIGIBILITY

Person convicted by a competent court of an offence involving moral turpitude;

Involved in any misconduct in respect stock exchange market.

Individual may apply and receive membership on condition that they form a corporate body within a specified time , usually 6 months from the date of the allotment letters issued to them.

Broker and Dealers shall be eligible to trade in CSE when it:Becomes a member of the CSE;Becomes a member of the CSE Clearing House;Open a Clearing Account with a Depository Participant of CDBL;Obtains a Brokerage\ Dealership license from SEC.A broker, dealer or their authorized representatives complies with Code of conduct prescribed by SEC.

BROKERS\DEALERS

The CSE brokers\dealers are required to comply with various requirements for continuing membership. These include: Submission of: Audited Annual Accounts within four months of

the end of the financial year; Monthly Net Capital balance report; Any changes of stock dealers/stock brokers

should be informed to the commission within 15 days through stock exchange;

COMPLIANCE WITH RESPECT TO

BROKERS/DEALERS

Compliance Authority report relating to the compliance of rules and regulations of the Exchange and SEC by his/her member company. The report will have to submit the report to the Exchange within 15 days after the end of every six-months period ending on 30th June and 31st December of the year.

Maintenance of the net worth at least half of its paid up capital at all times.

Renewal of their license annually with SEC.

The Authorized Representative shall:Not be less than 21 years of age;Have education qualification of HSC or equivalent;Not be adjudicated as an insolvent;Not be a person of unsound mind;Not be convicted by a competent court of an offence involving moral turpitude;

AUTHORIZED REPRESENTATIVE

Every broker/dealer shall appoint one of its director of Chief Executive Officer as compliance authority for a period not exceeding three years at a time subject to the following:He/she has not found convicted any criminal offence;He/she has not found by stock exchange or court involved in misconduct in respect of transaction in any security;He/she has obtained at least graduation degree;

COMPLIANCE AUTHORITY

In the Regulation 79 of the General Rules and Regulations of CSE,CSE may exercise any of its following disciplinary powers against a member:

i. Warning;

ii. Penalization;

iii. Temporary prohibition from performance;

iv. Prohibition from any performance of work in a member company within the period of time prescribed by the board;

v. Expulsion.

DISCIPLINARY ACTION AGAINST MEMBER

Published 7th day of every month in Bangla and contains: Monthly performance data; Financial information of the listed securities and Other useful news and events occurred in previous month.

CSE BAZAAR PORIKROMA

Published quarterly in English and contains: Thoughtful articles from experts; A review of capital market and national economy and; Basic statistics of listed securities;

PORTFOLIO

Published in English at a regular interval and contains: The last 5 years financial, non-financial and graphical data of the securities included in the Selective Index of Chittagong Stock Exchange.

CSE-30

Published in Bangla and contains: Techniques of share investment; Provides active members and their address; Contact address of listed securities and Lots of other information.

Its first publication date is December,2003 and it mainly published for- New investors, New generations-specially school , college , university students and teachers.

BINIYOG NIRDESHIKA

Published in Bangla and contains: The different indices and their calculation methods; A brief history of indices in Bangladesh stock market and Detailed discussion of CSE share indices. Its first publication date is September,2005. This guide will assist to develop better and clearer concept over stock market and thus enabling faster decision making for the investors.

SHARE BAZAAR SHUCHAK

We have collected all our information from www.cse.com.bd

THANK YOU ALL.