Review of

Securities Market in Bangladesh: A

Critical Appraisal of its Growth Since
its Inception in 1954

Part 5

Growth Pattern of Listed Companies

in the Securities Market (1996-2002)
Year (ended in
June)

No. of
listed
securities

No. of securities
(in millions)

Paid-up capital
(Taka in
millions)

Market
capitalization
(Taka in millions)

1996

201

375.3

21754.1

67727.6

1997

214

471.1

26907.4

107826.6

1998

224

523.2

30211.5

62264.4

1999

230

533.5

28684.0

50748.4

2000

239

685.7

30717.0

54004.0

2001

244

739.5

32227.0

72168.0

2002

257

1003.4

34968.0

65518.0

Securities Market in Bangladesh: A Critical Appraisal

Growth of the Securities Market During 1976-2002

Measured by the Number of Listed Securities and the
Number of Tradable Securities

Securities Market in Bangladesh: A Critical Appraisal

Growth of Public Issue

Market in Bangladesh
Year (ended 30 June)

Number of IPOs

Amount issued (taka in

millions)

1995

27

2560

1996

21

2265.7

1997

18

1377.3

1998

506.6

1999

150

2000

10

277.5

2001

11

217.0

2002

173.0

Securities Market in Bangladesh: A Critical Appraisal

Current State of Securities

Market (As of 2002)
Year

Amount of investment
(percentage)

Year

Ratio between Market

Capitalization and GDP

1976

2.47

1980

.2

1980

2.57

1985

.56

1991

2.98

1992

1.15

1997

7.28

1995

3.57

1997

6.22

1998

3.2

1999

2.39

2000

2.36

2001

2.84

2002

2.41

Securities Market in Bangladesh: A Critical Appraisal

Comparison Between Bangladesh

and Major Asian Stock Markets
Country

No. of listed
companies

Market Capitalization
(MC) in US$ millions

MC as percentage
of GDP

Bangladesh

221

1186

2.52

India

5937

148064

32.4

Pakistan

762

6581

10.68

Malaysia

795

116935

130.42

Thailand

381

29489

24.14

Philippines

230

51554

68.98

China

1086

171587

53.80

Indonesia

290

26834

17.51

Korea

1308

308534

37.53

Securities Market in Bangladesh: A Critical Appraisal

Comparison Between Bangladesh

and Major Asian Stock Markets

Fig: Position of Bangladesh Amongst the Selected Asian Markets in Terms of

MC of the % of GDP

Securities Market in Bangladesh: A Critical Appraisal

Conclusion
Failed to mobilize capital from public
sufficiently
Investor confidence drastically fell since 1996
stock market crash
Not enough security provided, especially
during IPOs
Reforms put into effect by the SEC and
Government has not brought the desired
results
Implementation of IAS could be a big solution
More regulation needed from the
Government
Securities Market in Bangladesh: A Critical Appraisal

Conclusion
Limitations of the article:
Research Methodology not defined clearly
Literature Review absent.

No mention on how data collection was

made.
Political incidents were avoided.
Crash of 1996 should have been
explained more clearly.
Securities Market in Bangladesh: A Critical Appraisal

Conclusion
Listed securities- 546 (June 30, 2014)
Market Capitalization- Taka 2.64 lakh crore (June 30,
2014)
Market Capitalization to GDP Ratio- 24.13% (June 30,
2014)
Market P/E ratio- 17.77 (June 30, 2014)
Introduction of DSEX (DSE Broad Index), DS30 (DSE 30
Index) and DSES (DSEX Shariah Index) in 2012-13
financial year
14 securities had IPOs with a paid-up capital of Taka
13,520 million were offered to investors in 2012-13
financial year
Securities Market in Bangladesh: A Critical Appraisal

References
Solaiman. S. M. (2005). Securities
market in Bangladesh: A critical
appraisal of its growth since its
inception in 1954. Savings and
Development, 29 (2), 169-198.
www.cse.com.bd/

http://www.dsebd.org/
https://en.wikipedia.org/
http://www.sec.gov.bd/
Securities Market in Bangladesh: A Critical Appraisal