Chittagong Stock Exchange

July 15, 2017 | Author: Towsif Noor Jamee | Category: Public Company, Stock Exchange, Stocks, Algorithmic Trading, Securities (Finance)
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Chittagong Stock Exchange

BACKGROUND 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 comprised of twelve Board members, presided by Mr. Amir Khosru Mahmud Chowdhury (MP) and run by an independent secretariat from the very first day of its inception. CSE was formally opened by then Hon'ble Prime Minister of Bangladesh on November 4, 1995. MISSION The Chittagong Stock Exchange believes that a dynamic, automated, transparent stock exchange is needed in Bangladesh. It works towards an effective, efficient and transparent market of international standard to serve and invest in Bangladesh in order to facilitate the competent entrepreneurs to raise capital and accelerate industrial growth for overall benefit of the economy and keep pace with the global advancements. OBJECTIVES 

Develop a strong platform for entrepreneurs raising capital;

Provide a fully automated trading system with most modern amenities to ensure: quick, easy, accurate transactions and easily accessible to all;

Undertake any business relating to the Stock Exchange, such as a clearing house, securities depository center or similar activities;

Develop a professional service culture through mandatory corporate membership;

Provide an investment opportunity for small and large investors;

Attract non-resident Bangladeshis to invest in Bangladesh stock market;

Collect preserve and disseminate data and information on stock exchange;

Develop a research cell for analyzing status of the market and economy.

The responsibilities of Chittagong Stock Exchange include the followings. 

Establishing listing requirements.

Approval, suspension or removal of listing privileges of companies.

monitoring listed companies in compliance with legal regulatory provisions

Permission of dual listing.

Providing the screen based automated trading of listed Securities.

Settlement of trading. (As per Settlement of Transaction Regulations).

Gifting of share / granting approval to the transaction/transfer of share outside the trading system of the exchange.

Market Administration & Control.

Market Surveillance.

Publication of Monthly Review.

Monitoring the activities of listed companies. (As per Listing Regulations).

Investors’ grievance Cell.

Investors Protection Fund.

Suggestions to improve the activities of CSE:

o To introduce automated monitoring system that may control price manipulation, malpractice’s and inside trading. o To introduce full computerized system for settlement of transactions.

o To force the listed companies to publish their annual reports with actual and proper information that can ensure the interests of investors. o To take remedial action against the issues of fake certificates. o The composite Quotation system CQS) should be introduced and implemented that available the exchange specialist bid-ask quotes to the subscribers. o To make arrangement to set-up merchant banks, investment banks and floatation of more mutual funds particularly in the private sectors. o Banks, insurance companies and other financial institution should be encouraged deal in share business directly. o The brokers should not be allowed to deal in the Scripps on their own accounts. o The management CSE should be vested with professionals and should not in any way be linked with the ownership of stock exchange and other firms.

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