With the adoption of the policy of encouraging the establishment of industries in the private sector, the Bangladesh Government took a number of measures to develop a sound capital market n the country.
To that end, the Dhaka Stock Exchange which remained defunct since liberation, was re-opened and re-activated in the middle of 1976. Similarly, Chittagong stock Exchange was re-opened and re-activated. So, lets know some major responsibility of Bangladesh stock exchange.
Responsibility of Bangladesh stock Exchanges
- Listing of companies
- Providing the market place for trading of listed securities. Settlement of trading
- Publication of daily Index, Monthly Review etc.
- Monitoring the Activates of listed companies.
Trading in the stock Exchange is done through automated on-line system every day except holidays.
There are four markets in the system-
- Public market– Only trading of market-lot share is done here thorough automatic matching.
- Spot market– Spot transactions are done here through automatic matching which must be settled within 24 hours.
- Block market– A place where bulk quantities of shares are traded through pock-and fill basis.
- Odd lot market– Odd not scripts are traded here based on pick-and-fill basis.
To make the exchanges more transparent and modern the various reforms have already been made in Stock Exchange to face the challenge of 21st century. Efforts have been made to enlarge other activates of the stock Exchange.
A Large never of companies have already been development in the country during the past few years with the aid and assistance of financial institutions, In course of time, securities of these companies will also be enlisted in the Stock Exchange for being shaded.
It is just a start to generate the private savings to form the industrial capital. The fiscal policies are to b formulated in such a way so that it can offer incentive to development.
Concerted efforts from all sectors need to be channelized to develop the Stock exchange market for formation of industrial capital in the country.
Besides various type of banks and financial institutions, run under the sponsorship and guidance by the government, there are twenty two other non-banking financial institutions and leasing companies either owned Privately or run under joint venture in collaboration with foreign companies.
They are also engaged in the same form of borrowing and lending from/to different sectors.
Related Content of Stock Exchange:
- What is the Definition of Stock Exchange?
- Features of Stock Exchange
- Merits / Benefits / Advantages of Stock Exchange
- Difference between Stock Exchange and General Market
- Services and Functions of Stock Exchange
- Causes of Price Fluctuation in Stock Exchange
- Trading Procedure in Stock Exchange