Review of

Securities Market in Bangladesh: A

Critical Appraisal of its Growth Since
its Inception in 1954

Part 2

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 the
Securities Market
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.

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 AGMs 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

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

Securities Market in Bangladesh: A Critical Appraisal