PROTECTION OF INVESTORS IN THE CAPITAL MARKET OF BANGLADESH (AN EMPIRICAL STUDY ON DHAKA STOCK EXCHANGE LIMITED AND ITS TREC HOLDERS)

Presented to:

Presented bySaied Mahmud ZubayerID-06, PGDCM 1st BatchBangladesh Institute of Capital Market

Capital Market

Investors ----- Disclosures and Investor Protection

“Investor” means a customer of a TREC holder of the DSE placing funds or securities with the TREC holder for carrying out buy or sale transaction in security listed with DSE/CSEDhaka Stock Exchange Limited not only provides an efficient market but also upholds the interests of the Investors and ensures settlement of their grievances, whether against the companies or its trading members

“Investor” means a customer of a TREC holder of the DSE/CSE placing funds or securities with the TREC holder for carrying out buy or sale transaction in security listed with DSE/CSE

Dhaka Stock Exchange Limited not only provides an efficient market but also upholds the interests of the Investors and ensures settlement of their grievances, whether against the companies or its TREC Holders. It strives to educate and enlighten the Investors by making available to them the necessary information

Services to Investors

Safeguards for Investors

While Selecting the Broker While entering into an Agreement While Transacting Ensuring Settlement

Rights of Investors

Rights as a Account Holder Rights as a shareholder

Rights of Investors = Duties and Responsibilities of Investors

Duties and Responsibilities of Investors

Have to Do Do not

Protection of Investors under Laws in Capital Market of Bangladesh

Section 20A of Securities and Exchange Ordinance, 1969

Rules3(1A), 8A(1)(2) and 8B of Securities and Exchange Rules, 1987

Securities and Exchange Commission (Stock Dealer, Stock Broker and Authorized Representative), Rules, 2000

Depository (User) Regulations, 2003 Regulations 15 and 16 of Dhaka Stock

Exchange (Settlement of Transactions) Regulations, 2013

Dhaka Stock Exchange (Investors’ Protection Fund Regulations), 2014

Protection of interest of Investors by DSE

DSE established Inventors Complaints, Arbitration and Litigation Department (ICALD) to look after the interest of investor in compliance with securities related laws. Monitoring and Compliance department is also working to ensure proper compliance of securities related laws by the TREC holder companies of the Dhaka Stock Exchange Limited in line with the protection of interest of investors. Inventors Complaints, Arbitration and Litigation Department (ICALD) and Monitoring and Compliance department checks and examines the securities and monies of investors in the member companies to ensure the rights of the investors.

Process of solving Investors’ grievances

Complaints against TREC Holder Companies (Stock Brokers)

Complaint against Listed companies:

Process of solving Investors’ grievances

Arbitration Arbitration Procedure Appeal

Dhaka Stock Exchange (Investors’ Protection Fund Regulations), 2014

Purpose of the Fund Lodging of claims and payment

against claims Circumstances for considering claims Certain claims to be disallowed Time limit for lodging claims Sources of Contribution of Investor

Protection

Investors Awareness, Education and Protection

CHALLENGES TO INVESTOR PROTECTION

Conclusion

What have we learned ?