ision, Mission and Objectives

Vision:
Advanced financial market distinguished legislatively and technically, regionally and globally; rising to the latest
international standards in the financial markets to provide an attractive investment environment.

Mission:
Provide an organized, fair, and efficient market for trading securities in the Kingdom, and secure a transparent,
strong, and safe environment for trading securities to deepen trust in the stock market.

Objectives:

Creating an attractive and safe environment for investment.

Developing processes and methods of trading securities in the stock market.

Meeting the latest international standards

Disseminating trading information to the largest possible number of dealers and interested parties.

Enhance the public awareness of all segments of society, while devoting especial attention to dealers of
securities.

Transparency and credibility in the dealings of the stock market.

Core Values:

Fairness.

Transparency.

Outstanding.

Creativity.

You are here : About Us > Objectives

Create a single integrated national-level solution with access to multiple markets by providing high
cost-effective service to investors across the country.

Create a liquid and vibrant national-level market for all listed companies in general and small capital
companies in particular.

Optimally utilising the existing infrastructure

Exchanges,which are under-utilised now.

Provide a level playing field to small Trading Members by offering opportunity to participate in a
national market for investment-oriented business.

Provide clearing and settlement facilities to the Trading Members across the country at their
doorstep in a decentralised mode.

Spread demat trading across the country.

and

other

resources

of

Participating

Stock

DEFINITION of 'Stock Market'

The market in which shares of publicly held companies are issued and traded either through
exchanges or over-the-counter markets. Also known as the equity market, the stock market
is one of the most vital components of a free-market economy, as it provides companies
with access to capital in exchange for giving investors a slice of ownership in the company.
The stock market makes it possible to grow small initial sums of money into large ones, and
to become wealthy without taking the risk of starting a business or making the sacrifices that
often accompany a high-paying career

9 Most Important Functions of Stock Exchange/Secondary

Market

1. Economic Barometer:
A stock exchange is a reliable barometer to measure the economic
condition of a country.
Every major change in country and economy is reflected in the prices
of shares. The rise or fall in the share prices indicates the boom or
recession cycle of the economy. Stock exchange is also known as a
pulse of economy or economic mirror which reflects the economic
conditions of a country.
2. Pricing of Securities:
The stock market helps to value the securities on the basis of demand
and supply factors. The securities of profitable and growth oriented
companies are valued higher as there is more demand for such
securities. The valuation of securities is useful for investors,
government and creditors. The investors can know the value of their
investment, the creditors can value the creditworthiness and
government can impose taxes on value of securities.
3. Safety of Transactions:
In stock market only the listed securities are traded and stock
exchange authorities include the companies names in the trade list
only after verifying the soundness of company. The companies which
are listed they also have to operate within the strict rules and
regulations. This ensures safety of dealing through stock exchange.

4. Contributes to Economic Growth:

In stock exchange securities of various companies are bought and sold.
This process of disinvestment and reinvestment helps to invest in
most productive investment proposal and this leads to capital
formation and economic growth.
5. Spreading of Equity Cult:
Stock exchange encourages people to invest in ownership securities by
regulating new issues, better trading practices and by educating public
about investment.
6. Providing Scope for Speculation:
To ensure liquidity and demand of supply of securities the stock
exchange permits healthy speculation of securities.
7. Liquidity:
The main function of stock market is to provide ready market for sale
and purchase of securities. The presence of stock exchange market
gives assurance to investors that their investment can be converted
into cash whenever they want. The investors can invest in long term
investment projects without any hesitation, as because of stock
exchange they can convert long term investment into short term and
medium term.
8. Better Allocation of Capital:
The shares of profit making companies are quoted at higher prices and
are actively traded so such companies can easily raise fresh capital

from stock market. The general public hesitates to invest in securities

of loss making companies. So stock exchange facilitates allocation of
investors fund to profitable channels.
9. Promotes the Habits of Savings and Investment:
The stock market offers attractive opportunities of investment in
various securities. These attractive opportunities encourage people to
save more and invest in securities of corporate sector rather than
investing in unproductive assets such as gold, silver, etc.

Board of Investment (BOI)

The Board of Investment (BOI) was established by the Investment Board Act of 1989 to promote and
facilitate investment in the private sector both from domestic and overseas sources with a view to contribute
to the socio-economic development of Bangladesh. It is headed by the Prime Minister and is a part of the
Prime Minister's Office. Its membership includes representatives (at the highest level) of the relevant
ministries - industry, finance, planning, textiles, well as others, such as the Governor of Bangladesh Bank,
heads of some business associations. The executive council of BOI consisted of an Executive Chairman
along with three members and a secretary.

Bangladesh Securities & Exchange Commission

The Bangladesh Securities and Exchange Commission (BSEC) was established on 8th June, 1993 under the
Securities and Exchange Commission Act, 1993.The Commission is consisted of the Chairman and four
Commissioners. The Chairman and Members of the Commission are appointed by the government and have
overall responsibility to administer securities legislation. The Commission is a statutory body and attached
to the Ministry of Finance. The mission of the commission is to protect the interests of securities investors,
develop and maintain fair, transparent and efficient securities markets and ensuring proper issuance of
securities and compliance with securities laws.

Dhaka Stock Exchange (DSE)

The Dhaka Stock Exchange (DSE) was incorporated in 1954 and the formal trading was started in 1956.
DSE is registered as a Public Limited Company and its activities are regulated by its Articles of Association
rules & regulations and bye-laws along with the Securities and Exchange Ordinance, 1969, Companies Act
1994 and Bangladesh Securities & Exchange Commission Act, 1993. At present, there are 297 companies
and 221 Treasury Bonds are listed with DSE.

Chittagong Stock Exchange (CSE)

The Chittagong Stock Exchange (CSE) began its journey in 10th October of 1995 from Chittagong City
through the cry-out trading system with the promise to create a state-of-the art bourse in the country.
Founder members of the proposed Chittagong Stock Exchange approached the Bangladesh Government in
January 1995 and obtained the permission of the Securities and Exchange Commission on February 12,
1995 for establishing the country's second stock exchange. The Exchange has a policymaking Body of 24
members, of whom 12 are elected and 12 are non-elected. This Board comprises of one President, three
Vice Presidents and 19 Directors. There is an independent secretariat headed by a Chief Executive Officer
(CEO). CSE currently has 257 securities listed with it.