Part 2

Review of

“Securities Market in Bangladesh: A

Critical Appraisal of its Growth Since

its Inception in 1954”

Securities Market in Bangladesh: A Critical Appraisal

Establishment of the

Securities Market

• Establishment of Dhaka Stock Exchange

• Established in 1954 as East Pakistan

Stock Exchange Association Limited.

• Began operation in 1956.

• Renamed to Dhaka Stock Exchange Ltd

(DSE) in 1964.

• Formed with 8 founding members.

Securities Market in Bangladesh: A Critical Appraisal

• Establishment of Chittagong Stock Exchange

• Established in 1995 in Chittagong.

• Began operation in the same year with 30

listed Securities and market capitalization of

10,574 million taka.

Establishment of the

Securities Market

Securities Market in Bangladesh: A Critical Appraisal

Market Growth During 1976-1989

• Operation remain suspended from

1971 to 1975.

• Resumed operation in 1976 after a

military coup with 9 listed companies.

• Growth was relatively slow from 1976

to 1981.

• Got a sudden boost after the military

takeover in1982.

Securities Market in Bangladesh: A Critical Appraisal

Market Growth During 1976-1989

• The upward trend continued till 1988.

• The listing rate again went down in 1989, due

to:

• Failure to hold AGM’s by the companies.

• Nonpayment of dividends to the shareholders

• Political unrest.

Securities Market in Bangladesh: A Critical Appraisal

Growth Pattern of Listed Companies

in the Securities Market (1976-1989) Year (ended in June) No. of Listed Securities No. of Securities (in mill)

1976 9 13.6

1977 11 14.7

1978 14 18.5

1979 18 21.2

1980 23 22.2

1981 26 26.6

1982 29 32.4

1983 44 44.4

1984 58 62.3

1985 69 80.7

1986 78 88.9

1987 92 105.3

1988 111 123.1

1989 116 149.7