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Syed Kamal Uddin (Suman) Suman_bd01@yahoo.

com

INTERNSHIP REPORT ON HUMAN RESOURCE PROCESS OF DHAKA STOCK EXCHANGE LTD.

INTERNSHIP REPORT ON HUMAN RESOURCE PROCESS OF DHAKA STOCK EXCHANGE LIMITED


Supervisor:
Professor M. Shahjahan Mina Advisor Faculty of Business and Economics Daffodil I
nternational University
Prepared by:
Syed Kamal Uddin ID # 053-11-978 BBA (12th Batch) Major in Finance Faculty of Bu
siness & Economics Daffodil International University
Daffodil International University
September 09, 2009

Letter of Transmittal
23th February 2009
To Professor M. Shahjahan Mina Advisor Faculty of Business and Economics Daffodi
l International University
Subject: Submission of Internship Report.
Dear Sir With proper honor I would like to state that I have completed the Inter
nship Report assigned by you named Human Resource Process of Dhaka Stock Exchange
Ltd. I have tried my best to fulfill all the requirements to make my Internship
Report according to your expectation. Without the sincere co-operation and prope
r guidance of you, it is not possible for me to prepare the report. For this act
of kindness I am grateful to you. So, I would like to request you to accept my
Internship Report that is enclosed with this application for your kind considera
tion.
Sincerely yours
Syed Kamal Uddin ID # 053-11-978 BBA (12th Batch) Major in Finance Faculty of Bu
siness & Economics Daffodil International University

Daffodil International University


Certificate of Approval
This is to certify that the Internship Report on Human Resource Process of Dhaka
Stock Exchange Ltd. in the bona fide record at the report is done by Syed Kamal U
ddin, ID # 053-11978, of the Department of Business Administration; Daffodil Int
ernational University has been approved for presentation and defence/viva-voce.
Under my supervision Syed Kanal Uddin worked with Dhaka Stock Exchange Ltd. as a
n Intern.
The Report has been prepared under my guidance and is a record of the bona fide
work carried out successfully. It has indeed been a great pleasure working with
him. I wish him all success in life.

Professor M. Shahjahan Mina Advisor Faculty of Business and Economics Daffod


University Date

19th February 2009


Letter of Authorization
This is to certify that Mr. Syed Kamal Uddin has been doing Internship Program i
n Dhaka Stock Exchange Ltd under Human Resources Department. from 3 rd May 2009.
He has been doing BBA from Faculty of Business and Economics, Department of Bus
iness Administration, Daffodil International University. Internship is a part of h
is BBA program. We have tried our best to provide him all the assistance to comp
lete his internship as a part of his BBA. I hope that the report of Mr. Syed Kam
al Uddin will be effective for anybody and any organization to get proper knowle
dge about the Human Resources Management. I wish him all the success in his life
.
Ms. Hosne Ara Pervin Assistant General Manger HRM, Administration & Training Aff
airs Dhaka Stock Exchange Limited.

DECLARATION
I do hereby solemnly declare that the work presented in this Internship Report h
as been carried out by me and has not been previously submitted to any other Uni
versity/College/Organization for an academic qualification/certificate/diploma o
r degree. The work I have presented does not breach any existing copyright and n
o portion of this report is copied from any work done earlier for a degree or ot
herwise. I further undertake to identify the Department against any loss or dama
ge arising from breach of the foregoing obligations.

. Syed Kamal Uddin ID # 053-11-978 Batch: 12th, BBA (Finance) . Dat

Preface
Internship in BBA program is a scope of gathering practical knowledge on corpora
te environment by engaging in an organization for a certain period. This report
on is the result of a survey that is conducted during the internship period in D
SE. Several Multinational stock exchanges are operating their activities since l
ong time. They are playing a very important role in enhancing the quality of the
stock exchange service in the country. Basically these multinational stock exch
anges are providing services to the local and Govt. stock exchange of our countr
y regarding foreign trade transaction. In quality maintenance, stock exchange pl
ays an important role. A good harmony between foreign and local stock exchange c
an ensure a quality service in international trade service. The position of the
multinational stock exchange in this market gives us a view about their performa
nce and overall market condition. In this report, an attempt has been made to po
rtray a picture on market condition and service quality of institutional stock e
xchange organizations in our country.
I

ACKNOWLEDGEMENT
Internship program in Dhaka Stock Exchange Ltd. has given me practical orientati
ons with the real work life. One individual without the help of others can compl
ete no work. In every step of this study many individuals and institutional expe
rts supported me. It gives me an immense pleasure to acknowledge them with my gr
atitude. First of all, I want to express my heartfelt gratitude to Almighty Alla
h without whose help it would not have been possible for me to prepare this pape
r. I would like to express my deep sense of gratitude to all those who are alway
s a source of inspiration for their involvement, unconditional cooperation and s
upport in all my academic endeavors. Without their encouragement, I could not st
and in pride as having done some academic work. I am indebted to all of them. It
would be unthinkable to prepare such a paper and present it in a lucid manner w
ithout the help of my supervisor Professor M. Shahjahan Mina, Advisor, Daffodil
International University. I would like to extent my gratitude to Ms. Hosne Ara P
ervin, AGM, HRM, Administration & Training Affairs, Dhaka Stock Exchange Ltd, fo
r her kind advice and suggestions. Then I would like to thanks Md. Saiful Islam,
Executive, HRM, Administration & Training Affairs and Mr. Mohammad Ebna Reaz, E
xecutive Officer, Merchant Banking Division, South East Bank Ltd. and all superi
or, subordinate and colleague of Dhaka Stock Exchange Ltd. for their advice and su
pp ort and also the classmates of BBA, Daffodil International University who mad
e it easy for me to complete university life. I would like to express my gratitu
de to Research, Development & Information, Public Relations & Publications Depar
tment, Monitoring, Investigation & Compliance, Market Operation, and other perso
nnel of for their cooperation to make this report effective.
I would like to thank all those who contributed through their comments and sugge
stions to prepare this paper in a comprehensive manner. In order to prepare this
paper I tried to devote my best effort and knowledge at a great extent. I beg p
ardon to my supervisor for my unintentional error, if any. Finally I would like
to thank my family for their support and help during the entire tenure of BBA. I
I

EXECUTIVE SUMMARY
It gives me immense pleasure that during internship period, as part of the BBA p
rogram. The internship report is prepared with respect to the two months interns
hip program in Dhaka Stock Exchange Ltd. The internship program helped me a lot
to learn about the practical environment and situation of a financial institutio
n and also make up a bridge between the theoretical and practical aspects and al
so to implement my theoretical knowledge in to the practical and realistic work
environment.
This report is composed of six chapters, which are further divided into differen
t parts. In the first chapter the introductory portion has been presented along
with background of the study, benefit of study and the objective of the study an
d the methodology, limitation and an overview of DSE, has been discussed in chap
ter two. Chapter three deals with the capital markets, primary market, secondary
market, securities and exchange commission, functions of capital market, survei
llance of DSE, instrument available in the capital market, share categorization:
A, B, G, Z & N, total listed company, and Central Depository Bangladesh Limited
(CDBL).
In Chapter four, discussed responsibilities of HR, admin & training affairs depa
rtment, routine tasks, training activities, disciplinary procedure, employee ben
efits and HR policy for DSE employee. In chapter five, I have highlighted the re
cruitment and selection process of DSE. In chapter six, I have highlighted the,
findings recommendation and conclusion, which includes details. I tried to bridg
e up all the findings based on analysis and discussions. While preparing the rep
ort I always tried my best level to make it authentic and at the same time easil
y understandable. For this, I came up with a number of reference books and journ
als to get the theoretical backup. In spite of my heart and soul effort there ma
y be some mistakes and unforeseen errors, which may arise due to my naive or ine
xperience state.
III

The practical activities of different desks what I have done is outlined in this
report. Various rules and regulations, policies and procedures relating to diff
erent activities have also been enumerated here
DSE has lots of scope to improve in this market as they have some competitive ad
vantages as a worlds one of the largest Stock exchange .It has number of branches
around the Bangladesh. Which can play an important role to create a positive im
pression in the market.
IV

CONTENTS
Particulars Preface
Acknowledgement Executive Summary
Page # I
II III
Chapter One: Introductory Part
1.1 Introduction 1.2 Origin of the Study 1.3 Background of the study 1.4 Stateme
nt of the Problem 1.5 Objectives of the Study 1.5.1 Broad Objective 1.5.2 Specif
ic objectives 1. 6 Benefit Of The Study 1.7 Methodology 1.8 Limitations
1-6
2 2 2 3 3 4 4 4 5 6
Chapter Two: Overview of Dhaka Stock Exchange Limited
2.1 DSE at a Glance 2.2 Preamble 2.3 History of DSE 2.3.1 DSE Tower at Nikunja 2
.3.2 Vision 2.3.3 Mission 2.3.4 Objectives
7-20
8 9 9 11 12 12 12 13 13 14
2.4 Legal Control- DSE As An Organization 2.5 The Major Functions Of DSE
2.6 Membership
I

Particulars
2.7 Policy Making Body: The Board Of Directors 2.8 DSE Management 2.8.1 DSE Boar
d of Directors 2.9 Other Activities 2.10 Different Departments Of DSE 2.11 DSE W
ebsite 2.12 Organogram Of DSE
Page #
14 15 16 18 18 19 20
Chapter-3: Capital Market: DSE
3.1 Capital Market 3.2 Primary Market 3.3 Secondary Market 3.4 Securities And Ex
change Commission 3.5 DSE Ranked Fourth Best Performing Exchange In The World 3.
6 Market Development 3.7 Surveillance Of DSE 3.7.1 Price Monitoring 3.7.1.1 Inve
stigations 3.7.1.2 Surveillance Actions 3.7.1.3 Rumor verification 3.7.2 Positio
n Monitoring 3.8 Market Expansion 3.9 Technical Development 3.10 Global Economy
3.11 Bangladesh Economy 3.12 The Global Stock Market 3.13 Bangladesh Stock Marke
t 3.14 Market Capitalization 3.15 Instrument Available In The Capital Market
21-42
22 22 22 23 23 24 25 26 26 26 26 27 27 27 28 30 31 31 33 34
II

Particulars
3.16 Share Categorization: A, B, G, Z & N 3.17 Total Listed Company 3.17.1 Liste
d Sector Of DSE 3.18 Central Depository Bangladesh Limited 3.18.1 What Is A Depo
sitory?
Page #
35 36 41 41 42
Chapter-4: Human Resources Department of DSE
4.1 Present Organogram Of Human Resources Department 4.2 Responsibilities Of HRM
, Admin & Training Affairs Department
43-62
44 45 46 46 46 46 46 47 47 48 48 48 49 49 49 49 50 50 51 52 53
4.3 Key Functions of HRD 4.3.1 Recruitment 4.3.2 Selection 4.3.3 Induction and O
rientation 4.3.4 Training 4.3.4.1 Local Training 4.3.4.2 Overseas Training 4.3.5
Placement 4.3.6 Performance Appraisal 4.3.6.1 Rewarding the Good Employees 4.3.
7 Promotion: 4.3.8 Personnel Development 4.3.9 Recruitment of Intern 4.3.10 Huma
n Rights at Work Place 4.3.11 Attendance 4.3.12 Leave 4.3.12.1 Ordinary Leave 4.
3.12.2 Extra-ordinary leave 4.3.13 Submission of Annual Confidential Report (ACR
)
III

Particulars
4.3.14 Preserve All Employees Personal File 4.3.15 Proper Implementation of DSE
Service Rules 4.3.16Disciplinary Procedure 4.3.17 Employee Benefits 4.3.17.1 Ove
rtime 4.3.17.2 Festival Bonus 4.3.17.3 Employee Remuneration 4.3.17.4 Food Allow
ance 4.3.17.5 Special Bonus/Allowance 4.3.17.6 Increment 4.3.18 Payment of Compe
nsation (Group Insurance) 4.3.18.1 Health Insurance 4.3.18.2 Provident Fund 4.3.
18.3 Gratuity 4.3.19 Transfer
Page #
54 54 55 57 57 57 58 59 59 59 60 60 61 61 61 62
4.3.20 Termination
Chapter- 5: Recruitment & Selection Process Of DSE
5.1 Recruitment 5.2 Sources of Recruitment 5.2.1 Recruitment process is as follo
ws 5.3 Recruitment Procedure 5.3.1 External Recruitment 5.3.2 Media Advertisemen
t 5.3.3 University Recruiting 5.3.4 Internet 5.3.5 Interns 5.3.6 Internal Recrui
tment
63-73
64 64 65 66 66 66 66 67 67 68
IV

Particulars
5.4 Selection 5.5 Selection Criteria 5.6 Categories of Criteria 5.6.1 Formal Edu
cation 5.6.2 Personal Characteristics and Personality Type 5.7 Selection Process
5.7.1 Step 1: Initial Screening 5.7.2 Step 2: Completing the Application Form 5
.7.3 Step 3: Employment Written Test 5.7.4 Step 4: Cognitive Ability Test 5.7.5
Step 5: Employment Interview 5.7.6 Step 6: Reference & Medical Check Up 5.7.7 St
ep 7: Selection Decision 5.7.8 Step 8: Job Offer 5.9 Critical Aspects of Labor f
orce of DSE
Page #
68 68 68 68 69 69 69 70 70 71 71 72 72 72 73
Chapter- 6: Findings, Recommendations and Conclusion
6.1 Findings on HRD 6.2 Staff or Personnel Planning 6.3 Lack of Forecasting of I
nternal and External Recruitments 6.4 Reference Checking 6.5 Equal Employment Op
portunity Benefits 6.6 Absence of Diverse Workforce 7.1 Recommendations 7.2 Conc
lusion
74-82
75 76 76 77 77 77 78-81 82
Bibliography:...............................................83
V

CHAPTER-1
Introductory Part
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1.1 Introduction
Bangladesh capital market is one of the smallest in Asia but the third largest i
n the south Asia region. It has two full-fledged automated stock exchanges namel
y Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) and an over-the
counter exchange operated by CSE. It also consists of a dedicated regulator, he
Securities and Exchange Commission (SEC), since, it implements rules and regula
tions, monitors their implications to operate and develop the capital market. It
consists of Central Depository Bangladesh Limited (CDBL), the only Central Depo
sitory in Bangladesh that provides facilities for the settlement of transactions
of dematerialized securities in CSE and DSE.
1.2 Origin Of The Report
This paper has been prepared as partial fulfillment of the internship program of
the BBA Program, under Daffodil International University. This report Human Reso
urces Process of Dhaka Stock Exchange Ltd. is the output of the 3 months long int
ernship program at Dhaka Stock Exchange Ltd., Dhaka, Bangladesh. This report has
been authorized by Ms. Hosne Ara Pervin, Assistant General Manager, HR, Admin &
Training Affairs, Dhaka Stock Exchange Ltd and approved Professor M. Shahjahan
Mina, Advisor, Daffodil International University.
1.3 Background Of The Study
As a mandatory part of BBA program all the students have to undergo an internshi
p program of three months duration in any organization with a view to acquiring
practical knowledge. Theoretical Knowledge is not enough for a business student.
There is a gap between the theoretical knowledge and practical knowledge. Our i
nternship program has been launched mainly to bridge the gap. Dhaka Stock Exchan
ge Ltd is the largest capital market in Bangladesh. The organization offers stud
ents the perfect opportunity to gain on-the-job experience by supporting and gui
ding them during their internship program in many business areas. After all they
know that todays students can be tomorrows most effic ient employees. Through int
ernship
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students become aware of organization al culture and learn how to show professio
nal excellence to a great extent. This learning helps them when they finally ent
er into practical field.
1.4 Statement Of The Problem
In the context of Bangladesh now capital market is very much become large. So it
is a challenge for any employees to survive successfully in this competitive en
vironment. In order to survive, its human resource management must be effective
and efficient. Now a day, Human Resources Department is an integral part of any
organization as the success or failure of an organization depends to a large ext
ent on its human resources. It is people who make things happen finally. Other f
actors of production are completely useless without people. It is the responsibi
lity of HR department to recruit the right people at the right job at the right
time. I have joined as an Intern in Dhaka Stock Exchange Ltd (DSE) and interview
ed several Executives of Human Resource Department during my internship period.
But while working on recruitment procedures of this organization. I have observe
d some limitations
like- absence of equal employment benefits, absence of diverse workforce, absenc
e of staff planning, lack of forecasting of internal and external recruitment, a
bsence of inter organizational communication and interpersonal skill etc. So the
purpose of my report to view and analyze the Human Resources Process of DSE, id
entify problems areas and recommend the ways to overcome.
1.5 Objectives Of Study
In this study I have chosen Human Resources Process of Dhaka Stock Exchange Ltd
as my assignment topic. I have collected the information related to the topic th
rough the Internet and personal interview. As a student of BBA I was encouraged
to find the similarities between my learning and real world situation. So, this
can also be considered as the objective of the paper in a broader sense.
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1.5.1 Broad Objective Objective of this report is to evaluate the activities of


overall Human Resources Process of the Dhaka Stock Exchange Ltd and derive findi
ngs concentrating on problem areas. 1.5.2 Specific objectives Following specific
objectives are identified:
To study and analyze Dhaka Stock Exchange Ltd., with
special emphasis on its background, functional environment, & HRM.
the organization and their HR Policies and Procedures. How does the organization
monitor the implementation. To study and analyze the current recruitment and se
lection process. Detail analysis of sources of potential candidates. Derive less
ons learnt during the whole process. To have an overall idea by linking the theo
retical concept of hiring Process with compensation strategy To focus on the sig
nificance of doing the compensation strategy during the hiring Process in the or
ganization To find problem areas and recommend suggestions to overcome.
1.6 Benefit Of The Study
The report provides the necessary information of the HR department and recruitme
nt and selection process of Dhaka Stock Exchange Ltd. The information will be ve
ry helpful for the HR department to overcome the weak areas and determine necess
ary adjustment to increase the efficiency of HR personnel. The study especially
focuses on the recruitment and selection process and has a brief idea about othe
r HR related aspects. The most likely benefits are:
The study provides an insigh
t to understand HR activities of Dhaka Stock Exchange Ltd. The study reveals the
overall guideline of a standard recruitment and selection procedure
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Overvie

The study provides necessary information regarding the difficulties faced by the
organization.
1.7 Methodology
The report is prepared on the basis of overall performance of DSE. Different rec
ord, statement, Annual report has helped me preparing this report. The subject m
aterial of this report is on primary and secondary sources of data and informati
on.
Sources of information
Primary source
Observation of various departments. Interview of different employ
ees. Secondary source
Annual report of DSE. Extensive literature search on the b
asis of document and publication from DSE library. Journal & publication from di
fferent local and International organization DSE Website: www.dsebd.org
1.8
Limitations
Its a great pleasure for me to work on this report. During preparing my report I
will learn lots of new things, which are much related to my report materials. It
helps us to fulfill my study, which is really needed for me. But still I face s
ome problem for my report.
Due to the time constraints its really hard for us to
collect all the data. Time is so limited and I do not have enough time to collec
t the data. Still I have tried our best to add more authentic information as muc
h as possible for us. I think that my report will be helpful for those people wh
o are interested to know about the compensation process.
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I have also information limitations because the people I have interviewed they d
id not disclose information as I needed. Moreover, they skipped much information
technically likeinternal and external recruitment budgeting process. 1. Imprope
r combination among various departments. 2. Due to the lack of time I could not
acquire in depth knowledge of the activities of different department perfectly a
nd clearly. 3. Adequate book, publication and journals were not available. 4. In
sufficiency of necessary information and data.
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CHAPTER-2
Overview of Dhaka Stock Exchange Limited
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DSE New Building at Nikunja, Uttara


2.1 DSE At A Glance
Incorporated as East Pakistan Stock Exchange Association Ltd.: Start of Formal T
rading: Renamed as East Pakistan Stock Exchange Ltd.: Renamed as Dacca Stock Exc
hange Ltd.: Trading Suspended under new State Policy: Trading Resumed in Banglad
esh: Starting Of All Share price Index calculation: Share price Indices calculat
ion on basis of IFC Designed formula: Starting of Automated trading: Starting Of
DSE-20 Index calculation: Starting Of DSE General Index calculation: Start of C
DS through CDBL: DSE All share price Index (DSI) Re introduced: 28th April 1954
1956 23rd June 1962 13th May 1964 16th December 1971 16 August 1976 16th Septemb
er 1986 1st November 1993 10th August 1998 January 2001 27th November 2001 24th
January 2004 28th March 2005
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2.2 Preamble
The Dhaka Stock Exchange is the prime bourse of the country. Through its nonstop
highly fault-tolerate screen based automated trading system the exchange has be
en offering facilities for transparent and highly efficient provisions for secon
dary market activities of securities. The management of the Exchange is vested w
ith the Board of Directors comprising 12 members elected from the shareholders o
f DSE, 12 non-elected independent Directors representing different Institutions,
Chambers and Professional bodies and the CEO of the Exchange A team of qualifie
d executives runs the overall operations of the exchange. The bourse at present
offers trading facilities for 401 securities worth Tk. 10110.30 billion-market c
apitalization, which contributes 18.20% of the total GDP of the country. With a
nationwide coverage through branches of brokers and dealer, DSE espouse shared v
ision of Bangladesh business all over the country. The exchange maintains the le
ad in providing a launching pad for mobilizing saving of Bangladesh living home
and abroad. Besides Bangladesh, nonresident & foreign institutional investors ha
ve been showing growing interest in this market over the years.
2.3 History Of DSE
The Necessity Of Establishing A Stock Exchange In The Then East Pakistan Was Fir
st Decided By The Government When, Early In 1952.It Was Learnt That The Calcutta
Stock Exchange Had Prohibited The Transactions In Pakistani Shares And Securiti
es. The Provincial Industrial Advisory Council Soon Thereafter Set Up An Organiz
ing Committee For The Formation Of A Stock Exchange In East Pakistan. A Decisive
Step Was Taken The Second Meeting Of The Organizing Committee Held On The 13th
March 1953. In The Cabinet Room, Eden Building, Under The Chairmanship Of Mr. A.
Khaleeli, Secretary Government Of East Bengal, Commerce, Labor And Industries D
epartment At Which Various Aspects Of The Issue Were Discussed In Detail. The Th
en Central Governments Proposal Regarding The Karachi Stock Exchange Opening A B
ranch At Dhaka. , Did Not Find Favour With The Meeting Who Felt That East Pakist
an
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Should Have An Independent Stock Exchange. It Was Suggested That Dhaka Narayanga
nj Chamber of Commerce & Industry Should Approach Its Members For Parchase Of Me
mbership Cards At RS.2000 Each For The Proposed Stock Exchange. The Location Of
The Exchange It Was Thought Should Be Either Dhaka Narayanganj Or Chittagong. An
Organizing Committee Was Appointed Consisting Of Leading Commercial And Industr
ial Personalities Of The Province With Mr. Mehdi Ispahani As The Convener In Ord
er To Organize The Exchange. The Chamber Informed Its Members And Members Of Its
Affiliated Associations Of The Proceedings Of The Above Meeting, Requesting The
m To Intimate Whether They Were Interested In Joining The Proposed Stock Exchang
e. This Was Followed By A Meeting, At The Chamber Of About 100 Persons Intereste
d In The Formation Of The Exchange On 07.07.1953. The Meeting Invited 8 Gentlema
n To Become Promoters Of The Exchange With Mr. M Mehdi Ispahani As The Convener
And Authorized Them To Draw Up The Memorandum And Article Of Association Of The
Exchange And Proceed To Obtain Register Under The Companies Act.1913. The Other
7 Promoters Of The Exchange Were Mr. J M Addision-Scott, Mr. Mhodammed Hanif, Mr
. A C Jain, Mr. A K Khan, Mr M Shabbir Ahmed And Mr. Sakhawat Hossin. It Was Als
o Decided That Membership Fee Was To Be Rs.2000 And Subscription Rate At 15 Per
Month. The Exchange Was To Consist Of Not More Than 150 Members. A Meeting Of Th
e Promoters Was Held At The Chamber On 03.09.1953 When It Was Decided To Appoint
Orr Dignam & Co., Solicitors To Draw Up The Memorandum And Articles Of Associat
ion Of The Stock Exchange Based On The Rules Of Stock Exchange Existing In Other
Countries And Taking Into Account Local Conditions. The 8 Promoters Incorporate
d The Formation As The East Pakistan Stock Exchange Association Ltd. On 28.04.19
54. As Public Company. On 23.06.1962 The Name Was Revised To East Pakistan Stock
Exchange Ltd. Again On 14.05.1964 The Name Of East Pakistan Stock Exchange Limi
ted Was Changed To "Dhaka Stock Exchange Ltd."
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At The Time Of Incorporation The Authorized Capital Of The Exchange Was Rs. 3000
00 Divided Into 150 Shares. Of Rs. 2000 each and by an extra ordinary general me
eting adopted at the extra ordinary general meeting held on 22.02.1964 the autho
rized capital of the exchange was increased to Tk. 500000 divided into 250 share
s of Tk. 2000 each. The paid up capital of the exchange now stoods at Tk.460000
dividend into 230 shares of Tk. 2000 each. However 35 shares out of 230 shares w
ere issued at TK. 80,00,000 only per share of TK. 2000 with a premium of TK. 79,
98,000. Although incorporated in 1954, the formal trading was started in 1956 at
Narayanganj after obtaining the certificates of commencement of business. But i
n 1958 it was shifted to Dhaka and started functioning at the Narayangonj chambe
r building in Motijheel C/A. On 1.10.1957 the stock exchange purchase a land mea
suring 8.75 Kattah at 9F Motijheel C/A from the Government and shifted the stock
Exchange to its own location in 1959.
2.3.1 DSE Tower At Nikunja
DSE has undertaken the construction work for its Second 14-storied 3 level basem
ent building at Nikunja with all the state of the art commercial facilities; it
is expected to be a landmark building. It will be a modern building with all mod
ern amenities. It is to be mentioned here that the Honble Prime Minister Sheikh H
asina specially allotted this piece of land reigned in 1998. Dhaka Stock Exchang
e took over possession of the four-bigah land on 25th November 1997 from RAJUK.
Construction of DSE Tower is expected to be completed in three years. The need f
or construction of DSE Tower at Nikunja was felt necessary to meet the growing d
emand of facilities from all the parties involved with this market, which by the
existing one may not be fulfilled. As the activities of the prime bourse is exp
anding rapidly in the last decade, this existing premise cannot accommodate all
the facilities in its present establishment at Motijheel for which DSE appealed
to the then Government for a big plot showing the justification. The Government
was pleased and allocated the 4 bigah land in the name of Dhaka Stock Exchange L
td. Dhaka Stock Exchange on 30th April, 2006 signed an agreement with Developmen
t Design Consultants Ltd. for architectural and engineering consulting services
for construction of multi-storied DSE Tower. To mention, DSE Tower will be set u
p on 1.33 acres (57,600 sfts) of land. The projected building area will be 741,1
09
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square feet. DSE signed a contract with GBB Limited on February 28, 2007 for the
first phase construction work of 14 storied with 3-basement DSE Tower building
for Taka 89.97 crore. The contractor, GBB Limited, has started the construction
work in the month of April 2007 and the construction work is in progress and is
expected to be completed by 2010.The basement work of the DSE Tower has already
been completed. By end of December 2008, 15% of the work is reported to have bee
n completed as against target progress of 39.79% as per original program.
2.3.2 Vision
Regulating the market structure through proper rules and strict compliance by me
mbers. Expansion of DSE trading network to cover 504 thanas. Introduce Book Buil
ding system in Bangladesh capital market. Introducing derivative market Continuo
us promotion of stock investment throughout the country. Create opportunity to c
ross border trading with SAFE countries.
Introduce Global Depository Receipts (GDR) 2.3.3 Mission
To create an efficient and transparent Market facilitating entrepreneurs to rais
e capital, so that it accelerates industrial growth for overall benefit of the e
conomy of the country.
2.3.4 Objectives
Develop a strong platform for entrepreneurs for raising capital; Provide an inve
stment opportunity for small and large investors; Develop a transparent market e
nsuring investor s interest; Provide a fully automated trading system with most
modern amenities to ensure: quick, easy, accurate transactions and easily access
ible to all; Attract non-resident Bangladeshis to invest in Bangladesh stock mar
ket;
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Attract foreign institutional investors to invest in Bangladesh; Collect, preser


ve, disseminate data and information on stock exchange;
2.4 Legal Control- DSE As An Organization
The Dhaka Stock Exchange Ltd is registered as a Public Limited Company. It is a
self-regulatory organization and its activities are regulated by: - Articles of
Association - Own rules, regulations and byelaws - Companies Act 1994 - Securiti
es and Exchange Ordinance 1969 - Securities and Exchange Rules 1987

2.5 The Major Functions Of DSE


Listing of Companies. (As per Listing Regulations). Providing the scr
utomated trading of listed Securities. Settlement of trading. (As per Settlement
of Transaction Regulations) Gifting of share / granting approval to the transac
tion/transfer of share outside the trading system of the exchange (As per Listin
g Regulations 42) Market Administration & Control. Market Surveillance. Publicat
ion of Monthly Review. Monitoring the activities of listed companies. (As per Li
sting Regulations). Investors grievance Cell (Disposal of complaint bye laws 1997
). Investors Protection Fund (As per investor protection fund Regulations 1999)
Announcement of Price sensitive or other information about listed companies
2.6 Membership
The DSE Currently has 238 members who are the shareholders of the public Limited
Company. Membership is open to foreigners. The Securities and Exchange Commissi
on
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(SEC) licenses members for conducting trading as Stock Brokers, Dealer or both a
ll Brokerage house have been corporatized in 2006.
2.7 Policy Making Body: The Board Of Directors
Through continuous reforms, Dhaka Stock Exchange has emerged into a modern Excha
nge. The day-to-day affair of the DSE is run by a highly qualified and trained e
xecutive team who works independently under polices set by the Board of Director
s.
The DSE Board comprises of 25 members of whom 12 are elected through direct from
the 235 shareholders of DSE. The remaining 13 Board Members are Ex-Officio. The
y include 12 members representing distinguished personalities from different key
economic and social arena of the country. The CEO of the Exchange is also a Dir
ector of the Board.
One councilor to be nominated by the ministry of Finance not
below the rank and status of Joint Secretary. One councilor to be nominated by
the Bangladesh Bank from amongst its officers of or above the rank of General Ma
nager. President of Institute of Chartered Accountants of Bangladesh, Ex-officio
Member. President of Federation of Bangladesh Chamber of Commerce and Industry,
Exofficio Member.
President of Metropolitan Chamber of Commerce and Industry, E
x-officio Member.
President of Dhaka Chamber of Commerce and Industry, Ex-offici
o Member. One councilor to be nominate by the Ministry of Commerce not below the
rank and status of joint Secretary as member. One councilor to be nominate by t
he Ministry of Law not below the rank and status of joint Secretary as member.
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One councilor to be nominate by the Ministry of Industry not below the rank and
status of joint Secretary as member.
President of Supreme Court Bar Association,
Ex-officio Member.
Head of the Department Finance /Economics, Dhaka
2.8 DSE Management
A highly qualified and trained team of Executive report to the CEO about the day
-to-day affairs of DSE. The management team runs independently under polices set
by the Board of Directors. A Chief Operating Officer, Chief Financial Officer,
and Chief Technology officer assists the CEO to manage day-to-day affairs of the
bourse.
Chief Financial Officer & Acting CEO
Satipati Moitra, M.Com, FCMA
PABX : 9564601,7175705-9, Ext-107 Mobile: 01713425800 Email : mailto:satipati@ds
ebd.org dse@bol-online.com
Chief Technology Officer
A. S. M. Khairuzzaman
Phone: 9564601,7175703-11, Ext-123 Email : mailto:skzaman@dsebd.org mailto:dse@b
ol-online.com kzaman_bd@yahoo.com
General Manager & Secretary
Shaikh Mohammadullah, MBA (IBA), FCS Phone: 9564601,7175705-9, Ext-102 Mobile: 0
1713333224 Email : smullah@dsebd.org, dse@bol-online.com
2.8.1 DSE Board of Directors
- 15 www.dsebd.org

Name Mr. Md. Rakibur Rahman President, DSE


Office Address
Room No - 508 , Stock Exchange Building , 9/F , Motijheel C.A., Dhaka-1000 Ph: 9
551960, 9559925, PABX : 9564601, 7175705-9 Ext. 508
Residence Address
Navana Villa Flat No. 201, Plot No. 10 Road No. 118 Gulshan, Dhaka Phone: 882350
0, 9895837 Mobile: 01819-219396
Photography
Mr. Saiful Islam Senior VicePresident, DSE
Suite No. 1002-3 9/E, Motijheel C/A, Dhaka-1000 Phone: 9561070, 9561232, 9564959
, 9569302 Fax: 9562254, 9564991
Apartment 2B, House No.16, Road No. 01, Baridhara Diplomatic Zone, Dhaka-1212 Re
s: 8859055 Mobile : 01711-546802
Mr. Md. Shakil Rizvi Vice-President, DSE
Room No: 905, DSE Annex Building (8th Floor) 9/E, Motijheel C/A, Dhaka-1000 Phon
e: 7175716, 9570985, 7166096, 7170993-4 PABX :9564601, 7175705-9 Ext- 429
Phone: Mobile: 01715864740
Mr. Abdul Haque Director, DSE
Room No - 618, 619, 709, 715 Stock Exchange Building 9/F, Motijheel C.A. Dhaka-1
000 Phone: 9551815, 9564573,9568417 PABX : 9564601,7175705-09 Ext-715/709
9/2, Bagabati Banerjee Road Hatkhola Dhaka - 1203 Mobile: 01711-537753
Mr. M.A. Quayum Director, DSE
Room no. 704 (6th Floor), Modhumita Building, 158-160,Motijheel C.A., Dhaka-1000
. Ph: 9557677 PABX : 9557677, 7168345
Road No. 104, House No. 5/F Flat No. A-4/S Gulshan -2, Dhaka - 1212 Phone: 88143
85 Mobile: 0175212755
Mr. Md. Hanif Bhuiya Director, DSE
Room no. 620 , 621 & 635 Stock Exchange Building 9/E, Motijheel C/A, Dhaka-1000
Mobile: 01713033829 Phone:9553321, 9563287,9554712 PABX :9564601, 7175705-09, Ex
t:620, 621, 635
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Ms. Lailun Nahar Ekram Director, DSE


House No. - 8A, Road No. - 50, Gulshan-2, Dhaka - 1212 Phone: 9887423, 9892714 F
ax: 9894877
House No. 14 (5th Floor), Road No.- 140, Gulshan - 01, Dhaka - 1212 Res: 8855098
Mobile: 01711-567122
Mr. Masudul Haque Director, DSE
Suite No. - 603 (5th Floor), Modhumita Building, 158-160 Motijheel C/A, Dhaka-10
00 Phone: 7174368, 7174451, 9561993
116, Bashir Uddin Road, Kalabagan, Dhanmondi, Dhaka-1205 Res: 9115571, 8144836 M
obile: 01711-542131
Mr. Mohammad Nasir Uddin Chowdhury Director, DSE
Room No. 322 9/E, Motijheel C/A, Dhaka-l000 Phone: 9561868, 9570496, 7174256, 71
74315, 9556792 Fax: 9555384, 9562207
4/404, Eastern Point 8-9, Shantinagar, Dhaka Res: 8354163 Mobile: 01819-213180 E
mail: lbsldhk@accesstel.net nasir@lbsbd.com
Mr. Md. Rafiqul Islam Director, DSE
Room No - 901 (8ht floor) 9/E, Motijheel C/A, Dhaka-l000 Phone: 9666927,9667011
PABX: 9564601 Ext-524
Phone: 9341147 Mobile: 01711-526213
Mr. Md. Feroz Khan Director, DSE
Room No - 313 (2nd Floor) Stock Exchange Building 9/F, Motijheel C/A, Dhaka-l000
Phone: 9552390,9561667 PABX: 9564601 Ext-313
Phone: 8810256 Mobile: 01711-548744
Mr. Md. Shahjahan Director, DSE
Room No - 213 Stock Exchange Building 9/F, Motijheel C/A, Dhaka-l000 Phone: 9551
403 PABX:9564601,7175705-09 Ext213
Phone: 9882204 Mobile: 01711 536876
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2.9 Other Activities


DSE Publishes Monthly Review to keep investors community informed on the overall
development in securities market. DSE also publishes a Bengali fortnightly and
Information Booklet regularly. Besides publication of a Stock Market Terminology
in both Bengali an English is in the offing.
DSE has an arbitration system to r
esolve disputes or claims against members through a panel judges compromising 5
retried districts judges. Investors Protection Fund, which is contributed by the
Brokers of the Exchange for the benefits of investors and managed by s board of
trusty who are independent body from outside the Exchange.

2.10 Different Departments Of DSE


Information & Communication Technology (ICT) Division
System & Market Admin Web
Dev & Int. trading Network Local Com Network Distance Com Application Support MI
S & Development
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Hardware Support Back Office Dev.


Finance Division
ng DSE FSDP

General Accounts Clearing Accounts & Exchange DP Special Cleari

Administration Division
Board Affairs Membership Affairs HRM, Administrat
raining Protocol, Logistics & Maintenance Publication & Public Relations Resourc
es & Development &Library Security Section Reception Legal
Operation Division & CEOs Secretariat Surveillance
Surveillance Internal Control
& Audit Monitoring, Investigation & Legal Affairs PS of CEO Listing Affairs & M
arket operation
2.11 DSE Website
DSE has been introduced a data integrated website www.dsebd.org with real time m
arket data where an investor can get basic information of all listed companies a
s well as associated trading information on securities arena.
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2.12 Organogram Of DSE ORGANOGRAM OF DSE


Board of Directors Internal Audit, Control & Compliance Committee
CEO - Chief Executive Officer
CTO-Chief Technical Officer
CFO-Chief Financial Officer
COO-Chief Operating Officer
ICT Division Administration Division Finance Division Operation Division
System & Market
Admin
Web Dev & Int. trading Network Local Com Network Distance Com Application Suppor
t MIS & Development Hardware Support Back Office Dev.
General Accounts Clearing Accounts &
Exchange DP
Board Affairs Membership Affairs HRM, Administration
& Training
DSE Clearing House
& Special Clearing
Protocol, Logistics &
Maintenance
Surveillance Internal Control &
Audit
DSE FSDP
Publication & Public
Relation
Monitoring,
Investigation & Legal Affairs
Research developments
&Information
Security Section Reception Legal
PS of CEO Listing Affairs
& Market operation
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CHAPTER-3
Capital Market: DSE
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3.1 Capital Market Sources from which long-term capital is raised for the settin
g up and sustained growth of companies. The Stock Exchange is a part of the capi
tal market, not only because it readily provides money for new or existing ventu
res, but also because it helps investors to trade in their shares and maintains
the liquidity of investment. Investment in further public and rights issues, con
vertible and non-convertible debentures, there the resources they need. A market
in which long-term capital is raised by industry and commerce, the government a
nd local authorities. The money comes from private investors, insurance companie
s, pension funds and bank and is usually arranged by issuing houses and merchant
banks. Stock exchanges are also part of the capital marketing that they provide
a market for the shares and loan stocks that represent the capital once it has
been raised. It is the presence and sophistication of their capital markets that
distinguishes the industrial countries from the developing countries, in that t
his facility for raising industrial and commercial capital is either absent or r
udimentary in the letter.
3.2 Primary Market
Primary market comprises of a market for new issue of shares, and debentures, wh
ere investors apply directly to the issuer/company for allotment & pay applicati
on money to the issuers/company account. Primary market is where a issuer /compan
y makes its contact directly with the public at large in search of capital disti
nguished from the secondary market. Where investors buy /sell listed shares on t
he stock exchange.
3.3 Secondary Market
Secondary market comprises of the buyer and seller of shares and debentures subs
cribed to the share or debenture of the company. If one wishes to sell the same,
it will be done in the secondary market similarly one can also buy the shares o
r debentures of a company from the secondary market (if the company is listed on
the stock exchange) without having to wait for the company to come out with a n
ew public issue.
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3.4 Securities And Exchange Commission


The Securities and Exchange Commission (SEC) was established on 8 th June 1993 u
nder the Securities and Exchange Commission Act, 1993. The Chairman and Members
of the Commission are appointed by the government and have overall responsibilit
y to administer securities legislation. The Commission, at present has three ful
l time members, excluding the Chairman. The Commission is a statutory body and a
ttached to the Ministry of Finance.
3.5 DSE Ranked Fourth Best Performing Exchange In The World
While the global stock markets have taken a beating, the DSE has performed reaso
nably well. According to Bloomberg, the New York-based prestigious information s
ervices company, the DSE was the fourth best performing exchange in the world on
a currencyadjusted basis in 2008. According to the 23 world indices, the Dhaka
Stock Exchange has performed the best in comparison with the other important sto
ck exchanges. I, therefore, congratulate all of you for the resounding success.
I also congratulate the new government elected by the peoples of Bangladesh and
I hope our securities market will see further growth during the tenure of the ne
w government which assumed office on January 6,2009. The new government will hop
efully stress the need for raising funds from the securities market, which will
ultimately help industrialization of the country as well as mobilization of inte
rnal resources. We firmly believe in teamwork and excellent loyal, efficient and
motivated team of employees is our harmonious strength. With a firm commitment
to achieve an excellence in service, DSE has always tried for creating wide arra
y of products and offer superior value proposition. To strengthen our technologi
cal platform, we have already installed state of the art technology. The resound
ing success that we have achieved last year was possible because of your relentl
ess support to the DSE. Our commitment to you for making your investment to have
an ever-increasing value has made possible to reach a commendable level of succ
ess.
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Securities market as a vital sector of the national economy continues to be very


important particularly in the backdrop of keen competition and continuous globa
lisation process. We play a crucially important role in creating employment thro
ugh investment.
3.6 Market Development
DSE continued its efforts to develop the market through taking various reforms a
nd programmes throughout the year. Since the inception of the DSE Training Acade
my on September 10, 2007, many training programmes for investors, authorised rep
resentatives, seminar on Derivatives, Financial Options and Futures for DSE offi
cials and professionals took place during the period. Apart from DSE head office
, many brokers and institutional investors are arranging awareness programmes in
the newly opened Training Academy. Honorable Adviser to the Caretaker Governmen
t Dr. A.B Mirza Md. Azizul Islam inaugurated the DSE Academy aiming to help crea
te a pro-active atmosphere in the securities market and thus build up a strong h
uman resource for the growing market. Removing the prevailing weakness in fixed
IPO Shares Pricing Method, DSE has been closely working with SEC to introduce Bo
ok-Building, alternative method of share price valuation. Under this method entr
epreneurs will be encouraged to get their business ventures into the bourses as
it will ensure them expected level of price of their shares. DSE as part of spre
ading awareness about the Book-Building method to extract time-bound opinion fro
m the experts in Financial Markets including regulators and Academics arranged a
workshop on Book Building Method on February 17, 2008 at its Boardroom. SEC Chair
man Mr. Faruq Ahmad Siddiqi was the chief guest of the function. It is assumed t
hat after the introduction of proposed Book Building Method profitable and funda
mentally sound companies will come forward to the capital market. Direct listing
of Jamuna Oil Company, Meghna Petroleum Ltd, Titas Gas Transmission and Distrib
ution Co. Ltd, ACI Formulations and Shinepukur Ceramics fulfilled the investors d
emand in the securities market. Of them, ACI Formulations and Shinepukur Ceramic
s were the first private companies to get direct listing. In another development
DSE arranged investors awareness programme of home and abroad during the year. T
o attract the Non-Resident Bangladeshis investment in Australia to the countrys ca
pital market, a DSE delegation
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- 24 -

visited two major cities in Australia in April 2008. Meanwhile, DSE arranged a r
oundtable titled global financial crisis and its impact on financial markets in B
angladesh at Sonargaon Hotel in Dhaka on November 15,2008. Securities and Exchang
e Commission Chairman, Mr Faruq Ahmad Siddiqi was the chief guest in the program
me while Deputy Governor of Bangladesh Bank Mr Ziaul Hasan Siddiqui was the spec
ial guest. DSE Senior Vice-president Mr Saiful Islam chaired. Mr MA Baqui Khalil
y, Professor of Department of Finance and Chairman of Centre for Corporate Gover
nance and Finance Studies of Dhaka University presented a keynote paper. DSE als
o arranged the Second Conference of South Asian Federation of Exchanges (SAFE) d
uring January 31 and February 01 in 2008 in Dhaka. The then Finance and Planning
Adviser, Dr. A.B Mirza Md. Azizul Islam inaugurated the 2-day conference. While
inaugurating the programme the Finance Adviser emphasised on joint and coordina
ted effort for strong and vibrant securities market. Top management officials in
cluding the CEOs of member exchanges from the SAARC regions participated the con
ference.
3.7 Surveillance Of DSE
The main objective of the Surveillance function of the Exchange is to promote ma
rket integrity in two ways
By monitoring price and volume movements (volatility) as well as by detecting po
tential market abuses at a nascent stage, with a view to minimizing the ability
of the market participants to influence the price of the scrip/scrips in the abs
ence of any meaningful information.

By managing default risk by taking necessary actions timely.


Market Abuse is a broad term, which includes abnormal price/volume movement, art
ificial transactions, false or misleading impressions, insider trading, etc. In
order to detect aberrant behavior/ movement, it is necessary to know the normal
market behavior - The department carries out investigation, if necessary, based
on the preliminary examination/analysis and suitable actions are taken against m
embers involved based on the investigation.
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All the instruments traded in the market come under the Surveillance umbrella of
DSE. Surveillance activities at the Exchange are divided broadly into two major
segments
Price Monitoring: Price monitoring is manly related to the price movement/ abnor
mal fluctuation in prices or volumes etc.

Position Monitoring: The position monitoring relates mainly to abnormal position


s of members, etc. in order to manage default risk.
3.7.1 Price Monitoring The functioning of the Price Monitoring is broadly divide
d into following activities 3.7.1.1 Investigations Conducting in-depth investiga
tions based on preliminary enquiries/analysis made into trading of the scrip. In
case of irregularities observed, necessary actions are initiated or investigati
on case forwarded to SEC, if necessary through the CEO.
3.7.1.2 Surveillance Actions
Warning to Members The department may issue verbal/ written warning to member/s
when a market irregularity in the scrip is suspected.

Imposition of penalty/ suspension The department, through the CEO, imposes penal
ty or suspend the member/s who are involved in market irregularities, based on t
he input/ evidence available from investigation report.
3.7.1.3 Rumor verification
Liaising with Compliance Officers of companies to obtain comments of the company
on various price sensitive corporate news items appearing in selected News Pape
rs.
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Comments received from the companies are disseminated to the market by way of on
line news bulletin.

Investigations based on rumor verifications are carried out, if required, to det


ect cases of suspected insider trading.
3.7.2 Position Monitoring The Surveillance Department closely monitors outstandi
ng exposure of members on a daily basis. For this purpose, it observes various o
ff-line and on-line market monitoring reports. The reports are scrutinized to as
certain whether there is excessive purchase or sale position build up compared t
o the normal business of the member, whether there are concentrated purchases or
sales, whether the purchases have been made by inactive or financially weak mem
bers and even the quality of scrips is considered to assess the quality of expos
ure.
3.8 Market Expansion
DSE opened its office in Sylhet on March 30, 2008. SEC Chairman Mr. Faruq Ahmad
Siddiqi inaugurated the office. DSE is also working to open its branch offices i
n Khulna and Rajshahi to fulfill the demand of the investors across the country.
We are in progress to establish four branch network offices in Dhaka.
3.9 Technical Development
Considering recent market growth, the Automated Trading Server was upgraded twic
e during 2008. Firstly it was upgraded from HP NonStop S7802 to HP NonStop S7804
by adding 2 CPU during March 2008 and the capacity was upgraded from 50,000 tra
des per day to 1,00,000 trades per day. The total Trader Ids supported by the up
graded System was 3000. This highly scalable Trading Server was further upgraded
to HP NonStop S7806 by adding another two CPU on December 21, 2008. The new HP
NonStop S7806 is capable to handle approximately 1,50,000 trades per day. WAN (W
ide Area Network) setup was further expanded by incorporating another three vend
ors (Network Service Provider) along with existing three vendors. Presently more
than 165 Member firms are operating trading
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activities approximately from 480 remote locations of 14 districts. Two DSE Bran
ch offices were running very smoothly at Chittagong and Sylhet. We are in progre
ss to establish two new DSE branch offices at Khulna and Rajshahi as well as DSE
network branches in Dhaka. Besides providing online trade data from MDS (Market
data server) to DSE official website, Mobile phones, ETV, etc, DSE is in proces
s to provide DSE online trade data to many renowned national/international compa
nies like Bloomberg, Mubasher Trades and to some of the online edition of the na
tional print media.
3.10 Global Economy
The global financial crisis of 2008 was the worst of its kind since the Great De
pression of 1930s. It became prominently visible in September, 2008 with the fai
lure of several large United States-based financial firms. The underlying cause
of the financial instability was the sub prime mortgage crisis. The financial cr
isis began in July 2007 (then referred to in the media as a "credit crunch" or "
credit crisis"), when a loss of confidence by investors in the value of securiti
zed ortgages in the United States resulted in a liquidity crisis. This prompted
a substantial injection of capital into financial markets by the United States F
ederal Reserve, Bank of England and the European Central Bank. The TED (an acron
ym of T-Bill and Euro Dollar futures contract) spread, an indicator of perceived
credit risk in the general economy, spiked up in July 2007, remained volatile f
or a year, then spiked even higher in September 2008, reaching a record 4.65% on
October 10, 2008. In September 2008, the crisis deepened, as stock markets worl
dwide crashed and entered a period of high volatility, and a number of banking,
mortgage and insurance company failures in the following weeks. Although America
s housing collapse is often cited as having caused the crisis, the financial sy
stem was vulnerable because of intricate and highly-leveraged financial contract
s and operations. In fact, U.S. monetary policy made the cost of credit negligib
le, therefore, encouraging high levels of leverage, and generally a "hypertrophy
of the financial sector". After affecting banking and credit in the United Stat
es, the situation evolved into a global general financial crisis verging on a sy
stemic crisis. Domino effect, as many institutions had
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financial links, and also psychological contagions made it spread at the same ti
me worldwide and to many financial and economic areas, including financial marke
ts (stock exchanges and derivative markets notably) where it resulted into a mar
ket crash, various equity funds and hedge funds that went short of cash and had
to get rid of assets, insurance activities and pension funds, facing a receding
asset portfolio value to cover their commitments, incidences on public finance d
ue to the bailout actions, increased volatility for Forex (e.g., currencies of I
celand, various Eastern Europe and Latin American countries). The Economic crisi
s of 2008 ensued also in various countries and inflicted various industries, as
the financial crisis was a factor for making borrowing and equity rising harder
for them. By September 2008, the financial crisis entered into an acute phase ma
rked by bankruptcy of Lehman Brothers and failures of prominent American banks a
nd efforts by the American governments to rescue distressed financial institutio
ns, by passing the Emergency Economic Stabilization Act of 2008. Iceland almost
claimed to go bankrupt. Many financial institutions in Europe also faced the liq
uidity problem that they needed to raise their capital adequacy ratio. European
government infused capital into major banks to keep them afloat. As the crisis d
eepened, stock markets fell worldwide, and global financial regulators attempted
to coordinate efforts to contain the crisis. The US government composed a $700
billion plan to purchase nonperforming collaterals and assets. However, the plan
was initially vetoed by the US congress because some members rejected the idea
that the tax payers money be used to bail out the Wall Street investment bankers.
The stock market plunged as a result; the US Congress amended the $700 billion
bail out plan and passed the legislation. The market sentiment continued to dete
riorate and the global financial system almost collapsed. While the market turne
d extremely pessimistic, the British government launched a 500 billion pound bai
l out plan aimed at injecting capital into the financial system. The British gov
ernment nationalized most of the financial institutions in trouble. Many Europea
n governments followed suit, as well as the US government. Stock markets appeare
d to have stabilized by the end of October 2008. The year 2008 was perhaps one o
f the worst years after the great depression of 1930s for a global equity invest
or. In the first part of the year, the global credit crisis took its toll and
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equity prices had started to fall. In the later months, when it was evident that
the world was heading for a recession, stock prices started to plummet like a s
ack of potatoes. According to the Economist, the UK-based prestigious magazine, A
merican mutual-fund assets have declined by USD 2.4tn - a fifth of their value since the start of 2008; in Britain, the drop is more than a quarter, or almost
BP 130bn (USD 195bn). The value of global stock markets has shrunk by USD 30tn,
or roughly half. These figures put the losses on credit-related securities, whe
re the financial crisis bega n, into the shade. Indeed, it was a bad year for equ
ity investors.
3.11 Bangladesh Economy
Bangladesh economy grew 6.2 per cent during the year 2007-08 as compared to 6.4
per cent in 2006-07. The economy performed well overcoming the damage and disloc
ation caused by the two floods and the cyclone SIDR. Nearly all sectors contribu
ted to the GDP growth, particularly export-oriented sectors, remittance and also
some service sectors like transport and communications. Inflation which rose to
9.8 per cent from 7.2 per cent in 2006-07, was caused mostly by the increase in
international prices of energy, food grains and fertilizers. In FY2008, economi
c performance was better than expected considering the effects of natural disast
ers in the first half of the fiscal year and higher international commodity pric
es. The recovery in agriculture and services and the rebound in exports in the s
econd half contributed to the reasonable 6.2% growth of GDP. Growth was supporte
d by a steady flow of bank credit and a surge in workers remittances. The economy
during the year witnessed a rare achievement when the National Board of Revenue
(NBR) for the first time achieved the target to earn Tk 374.79 billion as reven
ue. Agriculture grew at 3.6% in FY2008, after recovering from losses caused by t
he two floods and the cyclone in the first half of the fiscal year. The recovery
was led by a bumper boro (harvested in Spring) crop helped by good weather cond
itions and timely Government support. Potato and wheat production also fared wel
l. Industry sector growth in FY2008 declined to 6.9% from 8.4% in FY2007.
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3.12 The Global Stock Market


MSCI International Equity Indices are the most widely used global benchmarks in
the industry. They are used to benchmark more than an estimated USD 3tn in asset
s, by over 2,200 institutions globally and for over 90% of all international equ
ity assets under management in the US. Calculated since 1969, the indices have b
ecome integral tools in the investment process of international investors and ar
e used for research, in asset allocation models, to benchmark and conduct perfor
mance measurement analysis. Worldwide stock markets performed poorly. In many re
gions, the drop in some equity values were in excess of 50%, and all the indices
lost more than one-third of their value. Notwithstanding intermittent volatilit
y, decline was observed in almost all major stock markets during 2007-2008. The
Dow Jones composite Index and the New York Stock Exchange (NYSE) composite index
of USA witnessed decrease at the end of June 2008 as compared to those at the e
nd of June 2007. Similar trends were observed with regard to Nikkei 225 (Tokyo,
Japan) Composite Index (Kuala Lumpur) & Straits Times Index (Singapore). Only Ha
ng Seng Index (Hong Kong) closed on high notes. South Asian stock markets also w
itnessed volatility, but closed on low notes. During the said period, however, g
eneral index of DSE in Bangladesh showed an increase by 39.60 percent. The follo
wing table shows the price trends in the major stock exchanges of the South Asia
n Region:
3.13 Bangladesh Stock Market
3.13 Bangladesh Stock Market
In absolute terms, Dhaka Stock Exchange had a mixed year. In the first half of t
he year, the stock exchange went up significantly. This rise was due to a number
of factors. The year end for banks and other financial institutions is December
. They started to declare their results in the first few months of the year. As
their results came in, and the results were very healthy,
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these stock prices started to go up, which was reflected in the rise of the inde
x. The role of regulation cannot be ignored here. It was expected that reforms w
ould take place in the nonbank financial institutions, and the insurance sector,
which spurred the sharp rise in prices in these sectors. The banks were already
expected to give heavy stock dividends as a requirement to be compliant with Ba
sel II. All these factors meant that the index was on the up. The second half of
the year was a time of decline. True that the stock and cash dividends were adj
usted, however, the correction in the stock prices was much larger. There is lit
tle dispute that the market had been overheated in the first six months, and a c
orrection was long overdue. At the same time, some other factors also started to
concern the retail investors. Retail investors started to worry about the forei
gn portfolio investors pulling out their money as they did in Russia, India, Chi
na, and many other countries. The news coming from the developed and the develop
ing world about the ramifications of the credit crunch and the overall downturn
in the global economy exacerbated their fears. At the same time, the uncertainty
about the political situation started to put off investors in investing money i
n the bourses. Also, the second half of the year celebrated two major religious
festivals, which is generally a slag time for investors. All these factors culmi
nated into the down turn in the second of the year. However, in the last month o
f the year, we find retail investors again finding interest to invest. A large p
art of this renewed interest can be attributed to the prudent actions of our reg
ulators and the media. They rightly stressed that the current credit crunch in t
he global economy will not impact us greatly as we are not that leverage, and co
mplex instruments do not exist here. They also rightly stressed that; the global
recession will not affect us in a large way, as our economy is largely insulate
d from the negative aspects of the downturn. While the global stock markets have
taken a beating, the Dhaka and Chittagong stock exchanges have performed reason
ably well. According to Bloomberg, New York- based information Services Company;
the DSE was the fourth best performing exchange in the world on a currency-adju
sted basis in 2008. According to the 23 indices, the Dhaka Stock Exchange has pe
rformed the best in comparison with the other important stock exchanges.
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3.14 Market Capitalization


The total market capitalisation of the
countrys prime bourse DSE whopped to Tk 931.03 billion on June 30, 2008 as agains
t Tk. 475.86 billion of 30th June 2007,showing a 95.66 per cent increase. Market
Capitalisation/GDP ratio as on June 30, 2008, which determines the size of a sec
urities market compared with the total gross
domestic product in an economy in a given period of time, was still low when com
pared with the same with other countries. On June 30, 2008, the market capitalis
ation to GDP ratio rose to 19.92
____________________________________
per cent against 10.18 per cent on June 2007. The Month-End movement of market c
apitalisation is shown in the above graph.
The
graph
indicates
that
market
capitalisation of listed securities of DSE increased significantly to Tk 931.03
billion till June 30, 2008 from Tk 475.86 billion of the corresponding period of
the previous fiscal year showing a Tk 455.17 billion rise. The market capitaliz
ation continued to rise upto December, 2008 reflecting the investors growing enth
usiasm on the securities capitalization stood at Tk 1043.80 billion on December
30,2008. market. The market
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DSE Turnover marks 230% rise


During 2007-2008, the total annual turnover of securities at DSE stood at Tk 543
.29 billion against Tk. 164.67 billion of 2006-07 registering a
whopping 229.93 per cent rise. A total of 3,761.11 million shares were
transacted in the period of 2007-08 from a total volume of 1982.96 million share
s in the year 2006-2007 recording a 89.68 per cent rise. In 2005-06, the volume
was 592.76 million.
3.15 Instrument Available In The Capital Market
Govt.Bonds-Govt.notes and bonds.
Govt. Agency debts.
Municipal bonds.
Corporate
bonds Asset backed securities. Preference shares/preferred stock.
Ordinary share
s /common stocks Unit trust /close end mutual fund.
Derivatives, Loan etc.
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3.16 Share Categorization: A, B, G, Z & N


The prime bourse of the country introduced Group A and Group B from July 2,2000 base
d on its financial strength and performance to give clear information to investo
rs for taking informed decision. DSE has further categorized the securities by i
ntroducing Group Z which came into effect from September 26,2000. The Stock Exchan
ge introduced another company category Group G on June 30, 2002. The categorizatio
n helps a lot the investors in choosing companies before making investment decis
ion. N category the newest one was launched through an order of SEC on July 3,20
06.
Criteria of the share category is as follows:
A Category Companies Companies which are regular in holding the Annual General Mee
tings and have declared dividend at the rate of 10 percent or more in a Calendar
year. (Mutual Funds, Debentures & Bond are being traded in this Category) B Categ
ory Companies: Companies which are regular in holding the Annual General Meeting
s but have failed to declare dividend at least at the rate of 10 percent in a Ca
lendar year. Z Category Companies: Companies which have failed to hold the Annual
General Meetings or failed to declare any dividend or which are not in operation
continuously for more than six months or whose accumulated loss after adjustmen
t of revenue reserve, if any, is negative and exceeded its paid up capital. G Cate
gory Companies: Green field Companies: Newly listed green field companies shall
be grouped under this category.
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N Category Companies: All newly listed companies except Greenfield Companies will
be placed in this category and their settlement system would be like B-Category
Companies.
3.17 Total Listed Company
SLS FOOD & ALLIED L 154 ALPHATOBA (ALPHA TOBACCO) 155 AMAMSEAFD( AMAM SEA FOOD )
156 AMCL(PRAN)( AMCL (PRAN) ) 157 APEXFOODS( APEX FOODS ) 158 BANGAS( BANGAS )
159 160 161 162 163 164 BATBC( BATBC ) BDPLANT( BANGLADESH PLANTATION ) BEACHHAT
CH( BEACH HATCHERY LTD. ) BENGALBISC( BENGAL BISCUITS ) BIONICFOOD( BIONIC SEA F
OOD ) BLTC( BLTC )
BANK SL 1 ABBANK (AB BANK LIMITED) 2 ALARABANK (AL-ARAFAH ISLAMI BANK) 3 BANKASI
A (BANK ASIA LTD. ) BAYLEASING( BAY LEASING & 4 INVESTMENT LIMITED ) BDFINANCE (
BANGLADES FINANCE AND 5 INVESTMENT CO.LTD. ) BIFC( BANGLADESH INDUSTRIAL FIN. 6
CO. LTD. ) 7 BRACBANK( BRAC BANK LTD. ) 8 CITYBANK( CITY BANK ) 9 DHAKABANK( DHA
KA BANK ) 10 DUTCHBANGL( DUTCH-BANGLA BANK ) 11 EBL( EASTERN BANK ) EXIMBANK( EX
PORT IMPORT (EXIM) 12 BANK OF BANGLADESH ) FIDELASSET( FIDELITY ASSETS & 13 SECU
RITIES COMPANY LTD ) FIRSTSBANK( FIRST SECURITY ISLAMI 14 BANK LIMITED ) FLEASEI
NT( 1ST LEASE 15 INTERNATIONAL ) 16 ICBIBANK( ICB ISLAMIC BANK LIMITED ) 17 IDLC
( IDLC FINANCE LTD. ) 18 IFIC( IFIC BANK ) ILFSL( INTERNATIONAL LEASING & 19 FIN
ANCIAL SERV.L ) IPDC( INDUSTRIAL PROM. & DEV. CO. OF 20 BD LTD. ) 21 ISLAMIBANK(
ISLAMI BANK ) ISLAMICFIN( ISLAMIC FINANCE & 22 INVESTMENT LTD. ) 23 JAMUNABANK(
JAMUNA BANK LTD. ) LANKABAFIN( LANKABANGLA FINANCE 24 LTD. ) MERCANBANK( MERCAN
TILE BANK 25 LTD. )
165 CTGVEG( CHITTAGONG VEGETABLE ) 166 DHAKAFISH( DHAKA FISHERIES ) 167 FINEFOOD
S( FINE FOODS LIMITED ) 168 169 170 171 FUWANGFOOD( FU WANG FOOD ) GACHIHATA( GA
CHIHATA AQUACULTURE ) GBJVFOOD( GERMAN BANGLA FOODS ) GEMINISEA( GEMINI SEA FOOD
)
172 GULFOODS( GULF FOODS ) 173 HILLPLANT( HILL PLANTATION ) 174 MEGCONMILK( MEGH
NA CONDENSED MILK ) 175 MEGHNAPET( MEGHNA PET INDUSTRIES ) 176 MEGHNASHRM( MEGHN
A SHRIMP ) 177 MODERNIND( MODERN INDUSTRIES ) 178 MONAFOOD( MONA FOOD )
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26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48
49 50 NATIONAL HOUSING FINANCE
MIDASFIN( MIDAS FINANCING LTD. ) MTBL( MUTUAL TRUST BANK LTD. ) NBL( NBL ) NCCBA
NK( NCCBL ) ONEBANKLTD( ONE BANK LIMITED ) PHOENIXFIN( PHOENIX FINANCE AND INVES
TMENTS LTD. ) PLFSL( PEOPLES LEASING AND FIN. SERVICES LTD. ) PREMIERBAN( THE PR
EMIER BANK LTD. ) PREMIERLEA( PREMIER LEASING & FINANCE LIMITED ) PRIMEBANK( PRI
ME BANK ) PRIMEFIN( PRIME FINANCE & INVESTMENT LTD. ) PUBALIBANK( PUBALI BANK )
RUPALIBANK( RUPALI BANK ) SHAHJABANK( SHAHJALAL ISLAMI BANK LTD. ) SOCIALINV( SO
CIAL INVESTMENT BANK ) SOUTHEASTB( SOUTHEAST BANK ) STANDBANKL( STANDARD BANK LI
MITED ) TRUSTBANK( TRUST BANK LIMITED ) UCBL( UCBL ) ULC( UNITED LEASING ) UNION
CAP( UNION CAPITAL LIMITED ) UTTARABANK( UTTARA BANK ) UTTARAFIN( UTTARA FINANCE
) FINIX FINANCE
179 180 181 182 183
NTC( NATIONAL TEA ) RAHIMAFOOD( RAHIMA FOOD ) RANGAFOOD( RANGAMATI FOOD ) RASPIT
( RASPIT INC.(BD.) ) SHYAMPSUG( SHAYMPUR SUGAR )
184 TULIPDAIRY( TULIP DAIRY & FOOD ) 185 YOUSUFLOUR( YOUSUF FLOUR ) 186 ZEALBANG
LA( ZEAL BANGLA SUGAR )
TANNERY INDUSTRIES APEXADELFT( APEX ADELCHI FOOTWEAR 187 LTD. ) 188 APEXTANRY( A
PEX TANNERY ) 189 BATASHOE( BATA SHOE ) SL 190 EXCELSHOE( EXCELSIORSHOES ) 191 L
EGACYFOOT( LEGACY FOOTWEAR ) 192 LEXCO( LEXCO ) 193 PHENIXLETH( PHOENIX LEATHER
) 194 SAMATALETH( SAMATA LEATHER ) PHARMACEUTICALS & CHEMICALS SL 195 ACI( ACI L
IMITED. ) 196 ACIFORMULA( ACI FORMULATIONS LIMITED ) 197 ALAMINCHEM( AL-AMIN CHE
MICALS ) 198 AMBEEPHA( AMBEE PHARMA ) 199 BANGLAPRO( BANGLA PROCESS ) 200 201 20
2 203 BCIL( BCIL ) BXPHARMA( BEXIMCO PHARMA ) BXSYNTH( BEXIMCO SYNTHETICS ) GLAX
OSMITH( GLAXO SMITHKLINE )
CEMENT SL 51 ARAMITCEM( ARAMIT CEMENT ) 52 CONFIDCEM( CONFIDENCE CEMENT ) HEIDEL
BCEM( HEIDELBERG CEMENT 53 BD. ) LAFSURCEML( LAFARGE SURMA 54 CEMENT LTD. ) 55 M
EGHNACEM( MEGHNA CEMENT ) 56 MODERNCEM( MODERN CEMENT ) 57 NILOYCEM( NILOY CEMEN
T ) 58 PADMACEM( PADMA CEMENT ) SL ENGINEERING
204 IBNSINA( THE IBN SINA ) 205 206 207 208 IMAMBUTTON( IMAM BUTTON ) KEYACOSMET
( KEYA COSMETICS ) KEYADETERG( KEYA DETERGENT ) KOHINOOR( KOHINOOR CHEMICALS )
209 LIBRAINFU( LIBRA INFUSIONS LIMITED ) 210 ORIONINFU( ORION INFUSION ) 211 PER
FUMCHM( PERFUME CHEMICALS )
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59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81
AFTABAUTO( AFTAB AUTOMOBILES ) ANWARGALV( ANWAR GALVANIZING ) ATLASBANG( ATLAS B
ANGLADESH ) AZIZPIPES( AZIZ PIPES ) BDAUTOCA( BD.AUTOCARS ) BDLAMPS( BANGLADESH
LAMPS ) BDTHAI( BD.THAI ALUMINIUM ) BEMCO( BEMCO ) BSRMSTEEL( BSRM STEELS LIMITE
D ) ECABLES( EASTERN CABLES ) GOLDENSON( GOLDEN SON LTD. )
212 213 214 215 216 217
PETROSYNTH( PETRO SYNTHETIC ) PHARMACO( PHARMACO INTERNATIONAL ) PHARMAID( PHARM
A AIDS ) RAHMANCHEM( RAHMAN CHEMICALS ) RECKITTBEN( RECKITT BENCKISER(BD.)LTD. )
RENATA( RENATA LTD. ) SQURPHARMA( SQUARE PHARMACEUTICALS 218 LTD. ) 219 TBL( TH
ERAPEUTICS ) 220 WATACHEM( WATA CHEMICALS ) SL
INVESTMENT 1STBSRS( 1ST BANGLADESH SHILPA RIN KAY&QUE( KAY AND QUE ) 221 SANGSTH
A M.F. ) METALEXCR( METALEX CORPORATION ) 222 1STICB( 1ST ICB M.F. ) 1STPRIMFMF(
PRIME FINANCE FIRST MUTUAL MONNOJTX( MONNO JUTEX ) 223 FUND ) MONNOSTAF( MONNO
JUTE STAFFLERS ) 224 2NDICB( 2ND ICB M.F. ) NPOLYMAR( NATIONAL POLYMER ) 225 3RD
ICB( 3RD ICB M.F. ) NTLTUBES( NATIONAL TUBES ) 226 4THICB( 4TH ICB M.F. ) OLYMPI
C( OLYMPIC INDUSTRIES ) 227 5THICB( 5TH ICB M.F. ) QSMDRYCELL( QUASEM DRYCELLS )
228 6THICB( 6TH ICB M.F. ) RANFOUNDRY( RANGPUR FOUNDRY ) 229 7THICB( 7TH ICB M.
F. ) RENWICKJA( RENWICK JAJNESWAR ) 230 8THICB( 8TH ICB M.F. ) SALAMCRST( S. ALA
M COLD ROLLED STEELS LTD. ) 231 AIMS1STMF( AIMS 1ST M.F. ) SINGERBD( SINGER BANG
LADESH ) 232 GRAMEEN1( GRAMEEN MUTUAL FUND ONE ) 233 GRAMEENS2( GRAMEEN ONE : SC
HEME TWO ) 234 ICB( ICB ) ICB1STNRB( ICB AMCL 1ST NRB MUTUAL 235 FUND ) ICB2NDNR
B( ICB AMCL 2ND NRB MUTUAL 236 FUND ) 237 ICBAMCL1ST( ICB AMCL 1ST M.F. ) ICBISL
AMIC( ICB AMCL ISLAMIC MUTUAL 238 FUND ) JUTE
82 WONDERTOYS( WONDERLAND TOYS ) FUEL & POWER
SL
BDWELDING( BD. WELDING 83 ELECTRODES ) 84 BOC( BOC BANGLADESH ) DESCO( DHAKA ELE
CTRIC SUPPLY 85 COMPANY LTD. ) 86 EASTRNLUB( EASTERN LUBRICANTS ) JAMUNAOIL( JAM
UNA OIL COMPANY 87 LIMITED ) MPETROLEUM( MEGHNA PETROLEUM 88 LIMITED ) 89 PADMAO
IL( PADMA OIL CO. ) POWERGRID( POWER GRID COMPANY 90 OF BANGLADESH LTD. ) SUMITP
OWER( SUMMIT POWER 91 LIMITED ) 92 TITASGAS( TITAS GAS TRANSMISSION &
SL
239 JUTESPINN( JUTE SPINNERS ) 240 NORTHERN( NORTHERN JUTE ) 241 SALEHCARPT( SAL
EH CARPET ) 242 SONALIANSH( SONALI AANSH )
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DIST. CO. LTD. ) SL 93 94 95 96 97 98 99 100 SL SL 243 PAPER & PRINTING AZADIPRI


N( AZADI PRINTERS ) 244 HAKKANIPUL( HAKKANI PULP & PAPER ) 245 MAQENTER( MAQ ENT
ERPRISES ) 246 MAQPAPER( MAQ PAPER ) 247 MONOSPOOL( B.MONOSPOOL PAPER ) 248 PADM
APRINT( PADMA PRINTERS ) 249 PAPERPROC( PAPER PROCESSING ) SL SONALIPAPR( SONALI
PAPER ) 250 251 TEXTILE 252 253 254 255 256 IT SECTOR AGNISYSL( AGNI SYSTEMS LT
D. ) BDCOM( BDCOM ONLINE LTD. ) BDONLINE( BANGLADESH ONLINE ) DAFODILCOM( DAFFOD
IL COMPUTERS LTD. ) INTECH( IN TECH ONLINE LTD. ) ISNLTD( INFORMATION SERVICES N
ETWORK ) RASPITDATA( RASPIT DATA MANAGEMENT ) SERVICES & REAL ESTATE BDHOTELS( B
ANGLADESH HOTELS ) BDSERVICE( BANGLADESH SERVICES ) DBH( DELTA BRAC HOUSING FINA
NCE CORP. LTD. ) EHL( EASTERN HOUSING ) NHFIL( NATIONAL HOUSING FIN. AND INV. LT
D. ) SAMORITA( SAMORITA HOSPITAL ) SAPORTL( SUMMIT ALLIANCE PORT LIMITED )
101 AL-HAJTEX( AL-HAJ TEXTILE ) 102 ALLTEX( ALLTEX IND. LTD. ) 103 104 105 106 1
07 108 109 110 111 112 113 114 115 116 ANLIMAYARN( ANLIMA YARN ) APEXSPINN( APEX
SPINNING. ) APEXWEAV( APEX WEAVING ) ARBEETEX( ARBEE TEXTILE ) ASHRAFTEX( ASHRA
F TEXTILE ) BDDYE( BD.DYEING ) BDZIPPER( BD. ZIPPER IND. ) BEXTEX( BEXTEX LTD. )
CHICTEX( CHIC TEX LTD. ) CMCKAMAL( CMC KAMAL ) DANDYDYE( DANDY DYEING ) DELTASP
INN( DELTA SPINNERS LTD. ) DSHGARME( DESH GARMANTS ) DULAMIACOT( DULAMIA COTTON
)
CERAMICS SECTOR SL 257 BENGALFINE( BENGAL FINE CERAMIC ) 258 FUWANGCER( FU-WANG
CERAMIC ) 259 MONNOCERA( MONNO CERAMIC ) SPCERAMICS( SHINEPUKUR CERAMICS 260 LIM
ITED ) 261 STANCERAM( STANDARD CERAMIC ) INSURANCE SL 262 AGRANINS( AGRANI INSUR
ANCE CO. LTD. ) 263 ASIAINS( ASIA INSURANCE LIMITED ) ASIAPACINS( ASIA PACIFIC G
ENERAL 264 INSURANCE CO. LTD. ) 265 BGIC( BGIC ) 266 CENTRALINS( CENTRAL INSURAN
CE ) CITYGENINS( CITY GENERAL INSURANCE CO. 267 LTD. ) 268 269 270 271 CONTININS
( CONTINENTAL INSURANCE LTD. ) DELTALIFE( DELTA LIFE INSURANCE ) EASTERNINS( EAS
TERN INSURANCE ) EASTLAND( EASTLAND INSURANCE ) FAREASTLIF( FAREAST ISLAMI LIFE
272 INSURANCE CO. LTD. ) 273 FEDERALINS( FEDERAL INSURANCE ) 274 GLOBALINS( GLOB
AL INSURANCE LTD. )
117 DYNAMICTEX( DYNAMIC TEXTILE ) 118 EAGLESTAR( EAGLE STAR TEXTILE ) 119 GMGIND
( GMG IND. CORP. ) 120 HRTEX( H.R.TEXTILE ) MAKSONSPIN( MAKSONS SPINNING 121 MIL
LS LIMITED ) 122 METROSPIN( METRO SPINNING ) 123 MHOSSAIN( M. HOSSAIN GARMENTS )
124 MITATEX( MITA TEXTILE ) 125 MITHUNKNIT( MITHUN KNITTING ) 126 MODERNDYE( MO
DERN DYEING ) 127 MONNOFABR( MONNO FABRICS )
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128 PRIMETEX( PRIME TEXTILE ) 129 QSMSILK( QUASEM SILK ) 130 QSMTEX( QUASEM TEXT
ILE ) 131 132 133 134 135 136 137 138 139 140 SL 141 142 143 144 145 146 147 148
149 150 151 152 153
275 GREENDELT( GREEN DELTA INSURANCE ) 276 JANATAINS( JANATA INSURANCE ) 277 KAR
NAPHULI( KARNAPHULI INSURANCE ) MEGHNALIFE( MEGHNA LIFE INSURANCE CO. RAHIMTEXT(
RAHIM TEXTILE ) 278 LTD. ) MERCINS( MERCANTILE INSURANCE CO. SAFKOSPINN( SAFKO
SPINNINGS ) 279 LTD. ) SAIHAMTEX( SAIHAM TEXTILE ) 280 NATLIFEINS( NATIONAL LIFE
INSURANCE ) SAJIBKNIT( SAJIB KNITWEAR ) 281 NITOLINS( NITOL INSURANCE CO. LTD.
) NORTHRNINS( NORTHERN GENERAL SONARGAON( SONARGAON TEXTILES ) 282 INSURANCE COM
PANY LTD. ) PARAMOUNT( PARAMOUNT INSURANCE SQUARETEXT( SQUARE TEXTILE ) 283 COMP
ANY LTD. ) SREEPURTEX( SREEPUR TEXTILE ) 284 PEOPLESINS( PEOPLES INSURANCE ) STY
LECRAFT( STYLECRAFT LIMITED ) 285 PHENIXINS( PHOENIX INSURANCE ) TALLUSPIN( TALL
U SPINNING ) 286 PIONEERINS( PIONEER INSURANCE ) POPULARLIF( POPULAR LIFE INSURA
NCE CO. TAMIJTEX( TAMIJUDDIN TEXTILE ) 287 LTD. ) 288 PRAGATIINS( PRAGATI INSURA
NCE ) MISCELLANEOUS ARAMIT( ARAMIT ) 289 PRAGATILIF( PRAGATI LIFE INSURANCE LTD.
) BDLUGGAGE( BANGLADESH LUGGAGE ) 290 PRIMEINSUR( PRIME INSURANCE ) BERGERPBL(
BERGER PAINTS PRIMELIFE( PRIME ISLAMI LIFE INSURANCE BANGLADESH LTD. ) 291 LTD.
) PROGRESLIF( PROGRESSIVE LIFE BEXIMCO( BEXIMCO ) 292 INSURANCE CO. LTD. ) BSC(
BSC ) 293 PURABIGEN( PURABI GEN. INSURANCE ) ENGINEER( THE ENGINEERS ) 294 RELIA
NCINS( RELIANCE INSURANCE ) REPUBLIC( REPUBLIC INSURANCE COMPANY GQBALLPEN( GQ B
ALL PEN ) 295 LIMITED ) HIMADRI( HIMADRI ) 296 RUPALIINS( RUPALI INSURANCE ) MIR
ACLEIND( MIRACLE IND. ) 297 SANDHANINS( SANDHANI LIFE INSURANCE ) SONARBAINS( SO
NAR BANGLA INSURANCE ROSEHEAVEN( ROSE HEAVEN BALL ) 298 LTD. ) STANDARINS( STAND
ARD INSURANCE SAVAREFR( SAVAR REFRACTORIES ) 299 LIMITED ) SINOBANGLA( SINOBANGL
A TAKAFULINS( TAKAFUL ISLAMI INSURANCE INDUSTRIES ) 300 LIMITED ) USMANIAGL( USM
ANIA GLASS ) 301 UNITEDINS( UNITED INSURANCE )
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3.17.1 Listed Sector Of DSE


Sector Number of Companies Banks Investments Engineering Food & Allied Products
Fuel & Power Jute Textile Pharmaceutical & Chem. Paper & Printing Service & Real
Estate Cement IT Sector Tannery Industries Ceramic Industry Insurance Miscellan
eous Total 50 18 24 33 10 4 40 26 8 7 8 7 8 5 40 13 301
3.18 Central Depository Bangladesh Limited
Central Depository Bangladesh Limited (CDBL) was incorporated as a limited compa
ny on 20th August 2000 to operate and maintain the central depository system (CD
S) of electronic book entry, recording and maintaining securities accounts and r
egistering transfer of securities, changing the ownership without an physical mo
vement or endorsement of certificates and execution of transfer instruments, as
well as various other investor services including facilitation of the secondary
market trading of treasury bills and Government bonds issued by the Bangladesh B
ank.
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3.18.1 What Is A Depository?


A depository is like a bank for shares instead of money. Instead of holding shar
es in the form of certificates, investors have accounts in the depository and ar
e able to move securities and settle stock exchange transactions by an electroni
c update of their accounts. Virtually all established markets have depositories
including India, Japan, Malaysia, Pakistan, Srilanka and Thailand, UK and USA. T
he core service of a depository is the efficient delivery, Settlement and transf
er of securities through a computerized.
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CHAPTER- 4 to 5
Human Resources Process Of Dhaka Stock Exchange Ltd.
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CHAPTER-4
Human Resources Department of Dhaka Stock Exchange Ltd.
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4.1 Present Organogram Of Human Resources Department


AGM (1) Head of HR
Manager (1)
Senior Executive (1) Compensation & Benefits
Senior Executive (1) Compliance & Daily affairs
Executive (1)
Executive (1)
Executive (1)
Executive (1)
Jr. Executive (1)
Office Asstt-1
Sr. Office Asstt. Record Mgmt.
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4.2 Responsibilities Of HRM, Admin & Training Affairs Department


The Human Resources Department was started their activities in early 2006 and th
ere was only two employees in this Department. At this moment there are eleven e
mployees working in this department. Day bay day these department activities are
enhancing rapidly. The Human Resources Department is concerned with the selecti
on, recruitment, training of employees, maintenance of employee database, employ
ee leave maintenance, etc. Job Responsibilities of HRD is directly guided by the
AGM.
Assist to the administrative activities to GM to smooth operates for Dhaka
Stock Exchange. To take necessary actions to make it possible for employees to
contribute to his best to the performance of the group or department To plans, o
rganizes, coordinates, and supervises the activities of one or more functional a
reas within the Human Resource Department, Provides consultation and technical d
irection within the assigned functional areas of Human Resources including: recr
uitment/selection, classification /compensation, employee relations, training an
d organizational development, benefits, equal employment opportunity & refreshme
nt.
Monitoring attendance and tardiness policies, Leave record Notice of Absence
or Late ness, Contact with the CEO and arrange to set up the schedule of commit
tees meeting like as Selection & Disciplinary Committee, Organogram Implementati
on Committee, and HR Committee.
Performs other related duties as required. Maint
ain Supporting Papers of the following committee. A. Selection & Disciplinary Co
mmittee for Officers. B. Selection Committee for Staff of the Exchange. C. HR Ma
nagement Committee. D. Organogram Committee.
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4.3 Key Functions of HRD


Key functions involve following phases:
4.3.1 Recruitment
Being the first integrated Capital Market plant in the country DSE faced a great
challenge in recruiting experienced and qualified people for the project, Based
on the skill requirement, the senior care technical staffs are being recruited
from abroad. They are having on overage 15 years experience of this operation an
d some of them having experience in commissioning green field project. Keeping i
n mind the commitment on the local employment and future stuff costs the company
management is recruiting potential Bangladeshi people.
4.3.2 Selection
After successful recruitment an employee goes for medical test and salary negoti
ation. After that he/she is finally selected for DSE having completed necessary
formalities.
4.3.3 Induction and Orientation
Induction and orientation is concerned with new employee who is being made aware
of the companys philosophy, policies, objectives as related to him, companys plac
e in the industry or economy, The product, service performed, his/her job and pe
r development etc. This is also involved with introducing him to the people with
whom he is to come in contact in his/her job performance, rear, subordinates an
d supervisor. Also familiarizing him/her with social and community studies. DSE
follows a high degree of cultural value and philosophy. Also conduct a thorough
induction program/orientation to a newly selected employee.
4.3.4 Training
Dhaka Stock Exchange Ltd conducts a rigorous training to its employees. It include
s basic trade trainings, advance training etc. Training is conducted both home a
nd abroad. As the training is conducted both home and abroad it helps both the e
mployee and organization. A
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well-trained employee is an asset to the organization and also employee can deve
lop him/herself. DSE has taken a good number of steps to develop its employees.
4.3.4.1
Local Training

Local training can be both-Inside DSE and Outside DSE Induction/Orientation trai
ning Program falls under inside DSE training category. After joining, it is the
responsibility of the HR to conduct induction /orientation training to the newly
recruited personnel to provide a general introduction of the company. To prepar
e training plan, participant s list, and training schedule for induction trainin
g - HR department does all. Inside DSE training will cover Management training.
Out side DSE training means to take part in training programs offered by differe
nt training institutions/universities on different subjects. DSE follow this typ
e of training such are;
Authorized Representative Training Compliance Train
ember Training Training as per requirements of department Company Secretary Trai
ning Investors Awareness Training Management Development DSE Employee Training.
4.3.4.2 Overseas Training
After need assessment employees who need overseas training are sent abroad. For
overseas training. Expenses of overseas training are generally borne by DSE. The
particular employee who has been selected for training has to sign a surety bon
d for specific period of time for overseas training. In the process more than 43
local employees, have been sent overseas, in China, Singapore, and Malaysia on
India or training assignments. Apart from the senior staffs on training assignme
nts, training of the other staffs has been planned and under implantations at DS
E guidelines.
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4.3.5 Placement
Once candidate is finally selected he/she is placed to the concerned department
for his/her actual job. It is normally decided earlier, for which post or vacanc
y the candidate is selected. Employee transfer is one of the important activitie
s of Human Resources Division.

4.3.6 Performance Appraisal


It is furnished annually. The concerned department and HR department are respons
ible for necessary performance appraisal .f the performance of any employee is n
ot up to the standard than necessary corrective/disciplinary procedure is follow
ed against that employee. 4.3.6.1 Rewarding the Good Employees Having rewards le
ads to increased job satisfaction. People do what they do to satisfy some need.
Before they do anything they look for a payoff or rewards. The obvious reward em
ployees get from work is in the form of salary. They expect good job performanc
e to lead to organizational rewards, and they further seek rewards that will sat
isfy their individual goals or needs. Organization use rewards to motivate their
employees. They rely on rewards to motivate job candidate s to join the organiz
ation. They certainly rely on rewards to get employees to come to work and perfo
rm effectively once they arc hired. Popular criteria that influence the distribu
tion of rewards arc: Performance Effort Seniority Skills held Job difficulty Di
cretionary timetheir salary is
The employees of DSE ate even rewarded at the end of the year, cither increased,
or appreciation arc given to employee
for any outstanding performance.
Effort and various facilities ate given to high post officials.
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4.3.7 Promotion:
An employee may be eligible for consideration of promotion to next higher grade
when he completes a minimum 3 years service in his existing post and if he is fo
und suitable for promotion subject to the availability of the post. Promotion fr
om a lower post to higher post shall be based on seniority, fitness and performa
nce subject to fulfillment of the specified qualification for the post. No employe
e shall have a claim to be promotes as a right by virtue of seniority only.
4.3.8 Personnel Development
Personnel development is mainly concerned with the enlarging on improving the em
ployees capacity. This will enable him/her to successfully and more effectively h
andling greater responsibilities DSE looks ahead for all possible steps to devel
op its personnel by.
Looking ahead for the growth and expansion of the individua
l employee. Provide training to upgrade skills and knowledge to make him/herself
fit occupy higher position. Pursuance of the project Leader for Tomorrow (LFT)
and motivate each employee to follow the DSE way.
4.3.9 Recruitment of Intern
Intern is also another important part of their recruiting process. A learner who
is paid an allowance or stipend during the period of work experience. All inter
n contracts will be prepared by HRD. The contract will specify all terms and con
ditions including period of internship, including remuneration, working hours, d
uration, supervision etc. Working hours, leave and holidays for the intern shall
be the same as it applies in case of other employees.
4.3.10 Human Rights at Work Place
DSE is very much conscious about human rights of its employees.
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Policies. DSE is very much committed to respecting and promoting human rights in
its sphere of influence. This commitment has been included in our code of busin
ess conduct, which applies to the entire workforce. The group human resource pol
icy states that the group excludes forced labor. There is no provision of child
labor also.

Policies and program at local level. At the local level almost all the units hav
e developed their own policy on human rights.

Relationship with Union. All business units have a specific policy or procedure
on freedom of association and negotiation for DSE employees. Unions or some kind
of collective agreement represents the majority of DSE work forces.

Use of Security Agents. To ensure security of employees the organization-employe


d security guards wherever is necessary. 21% of business units use armed security
forces also.
4.3.11 Attendance
Employers need their employees to report to work regularly and on time. An emplo
yee who is constantly tardy or absent disrupts the workflow, burdens co-worker w
ith extra tasks, lowers morale, and may affect the quality of products and servi
ces. One of the HR executive is maintain the attendance either employees are com
e timely or not. If not then he put on L for Late; if someone is absent then A for a
bsent; if someone have leave then CL for casual leave. If someone has late regular
ly then the executive is issue a letter or note for much late by the sign of AGM
of HR, which may causes employee evaluation.
4.3.12 Leave
Leave is earned by duty only and cannot be claimed as a matter of right. All app
lications of leave shall be addressed to the competent authority and shall be su
bmitted through proper channel in a specified form. Competent authority may refu
se or grant a leave for a stated period when applied for, revoke leave of any de
scription and recall an employee before the expiry of his leave. An employee sha
ll not proceed on leave on the basis of submission of
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application until it is sanctioned. Overstay of leave may attract punishment inc


luding dismissal from service. Various types of leave shall be admissible for an
employee: a) Ordinary Leave Casual Leave, Medical leave, Earned Leave b) Extraordinary Leave- Maternity Leave, Study Leave, Transit Leave 4.3.12.1 Ordinary Le
ave: 1. Casual leave: - means period of absence for a short period granted to an
employee who is unable to attend duty due to urgent private affairs, Casual lea
ve may be granted to an employee up to a maximum of 15 days during a calendar ye
ar but not for a period exceeding 5 days at any one time. Casual leave shall not
be accumulative and the unspent balance shall be lapsed on 31st December each y
ear. Casual leave cannot be combined with other leave and cannot be taken in com
bination of joining time. 2. Earned Leave: - All regular and permanent employees
are entitled to enjoy full pay at the rate of 1 day for every 12 days of the pe
riod spent on duty and the leave so earned shall be credited to his leave accoun
t and the maximum accumulation shall be 120 days. The period earned in excess of
120 days shall stand lapsed. The amount of earned leave at full pay that may be
taken in one spell shall not exceed 30 days normally. The competent authority m
ay, however, under special circumstances rise to any period subject to maximum o
f 120 days. The calendar year shall be the basis of earned leave. Normally earne
d leave is credited to an employee on completion of 1 (one) year service. Howeve
r, leave may be granted to an employee after confirmation if he has not complete
d 1 (one) year service at the following rate.
Employee with service leaves 3 to 6 months 6 to 9 months 9 to 12 months
Percentage of total sanction 33% 66% 100%
2.1 Earns leave at the end of the calendar year shall be credited over the next
year in the event the incumbent is refused to enjoy leave. The Head of Departmen
t shall submit earned
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leave plan at the beginning of each year. No leave shall be carried over to the
next year if the incumbent fails to produce leave application refused by compete
nt authority during the subject year. 2.2 The employee is entitled to en-cash 50
% out of the accumulated earned leave by Surrendering 50% to the credit of the e
mployer subject to: 1. He has been consecutively refused 3 times due to exigency
of works. 2. He applies for encashment of 50% closing such refusal on prescribe
d leave application forms only. 3. Successive refusal should not be within the p
eriod of leave applied for and refused earlier. 3. Medical/Sick Leave a) Every e
mployees shall be entitled to medical/sick leave with full wages for a total per
iod of fourteen days in a year; such leave not availed of by any employee during
a calendar year may be carried forward, but the total accumulation of such leav
e shall not exceed 28 (twenty-eight) days at any one time. b) Sick leave may be
granted on medical grounds on the recommendation of register medical practitione
r approved by the company. 4.3.12.2 Extra-ordinary leave: Leave without pay may
be granted to an employee in special circumstances when no other leave is admiss
ible. The duration of leave without pay shall be so regulated that the amount of
total leave including other leave taken in consideration does not exceed maximu
m of 1 (one) year at one time. 1. Study leave- when the competent authority sele
cts an employee for training in the country or abroad the entire period includin
g travel time shall be treated on duly for all-purpose. 2. Maternity Leave- A fe
male employee may be granted maternity leave (which is not debited against leave
account) with basic pay only for a period of 12 (twelve) weeks before
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and 4 (four) weeks after date of confinement subject to the incumbent has at lea
st 9 (nine) months continuous service immediately preceding the date of delivery
. An employee is, however, entitled to enjoy maternity leave for a maximum of 4
(four) months during the whole service life. Leave on medical ground irrespectiv
e of the nature ordinary or extra-ordinary shall be granted only at the advice o
f designated medical officer of the Dhaka Stock Exchange. 3.Transit Leave- If an
employee is transferred from one office to another (not within same city) he/sh
e shall be allowed 2 days leave with full pay to cover journey with his househol
d effects.
4.3.13 Submission of Annual Confidential Report (ACR)
The management has a policy to promote any employee on the basis of good perform
ance recorded in Annual Confidential Report (ACR). ACR will prepare by the manag
ement depending on performance report given by his/ her departmental in charge.
CEO will act on the report submitted by Committee. As regard Divisional/ Departm
ental Head will prepare reports of performance and place before the committee fo
r increments or promotion. Overall Evaluation of ACR Excellent Very Good Good Av
erage Below Average Average Score of ACR : 9.0 and above : 7.5 and above : 6.0 a
nd above : 5.0 and below 6.0 : Less than 5.0
An employee obtaining overall ACR grade of Excellent may be allowed one special in
crements. An employee obtaining overall ACR grade of Very Good for consecutive two
years may be allowed one special increment.
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An employee obtaining overall ACR grade of Average or below for consecutive two ye
ars shall be subject to withholding increment. If some one obtains below average
grade for consecutive two years, warning will be issued and similar performance
may cause termination from the job.
4.3.14 Preserve All Employees Personal File
One of the major activities of HR is to maintain or preserve all employees perso
nal file. This is really important for every employee because of this file conta
ins his or her all original academic certificates, experience certificates, mont
hly evaluation report, performance appraisal and annual confidence report. Some
times this files are need to update for their promotion. In addition, documentat
ion about an employees job performance can help support personnel decisions, such
as promotion, transfer, discipline, or discharge. Therefore, every employer sho
uld establish a formal system for gathering and maintaining required information
on applicants, employees, and former employees.
4.3.15 Proper Implementation of DSE Service Rules
This regulation shall be called Service Regulations for Employees of Dhaka Stock
Exchange Ltd. These Regulation shall apply to the whole time employees appointed
in the Service of the Dhaka Stock Exchange permanent, Temporary or on contract
basis and shall come into force with immediate effect. Acts done before these Re
gulations come into being, any order passed, appointment made, action taken, pro
ceeding commenced under the provisions of regulations or orders in force on the
date of issue of these regulations shall continue in effect and deemed to have b
een passed, made, taken or commenced as the case may be under the corresponding
provisions of these regulations as if these Service Regulations had been in forc
e when such order was passed or such appointment made of such actions taken or s
uch proceedings commenced. Relaxation- The HRD of Dhaka Stock Exchange Ltd. may
modify, amend, replace, relax and/or add to any of the provision of these rules
in such manner and such extent as it may deem necessary from time to time.
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The power of interpreting these Regulations, lies with the Council to the extent
it does not violate the relevant laws of the land.
4.3.16 Disciplinary Procedure Misconduct
The following acts and omissions shall be treated as misconduct: Willful in subo
rdination or disobedience, whether alone or in combination with other to any law
full order of a superior; theft, fraud or dishonesty in connection with the emp
loyers business or property; taking or giving bribes or any illegal gratification
in connection with his or any other Officer/Employees employment under the Dhaka
Stock Exchange. Habitual absence without leave or unauthorized extension of san
ctioned leave; habitual late attendance; breaks of any law or rule or regulation
of the Dhaka Stock Exchange. Riotous or disorderly behavior in the office of th
e Dhaka Stock Exchange or any act subversive of discipline; habitual negligence
or neglect of work; frequent repetition of any act or omission; resorting to ill
egal strike or go slow or inciting others to resort to illegal strike or go slow fal
sifying, tampering with damaging or causing loss of Dhaka Stock Exchange officia
l records.
Penalties, Punishment, Disciplinary Actions etc:
The following shall be the penalties, punishment and disciplinary actions, which
may be imposed/taken under these rules: a) Censure/warning; b) Withholding prom
otion or increment for a specified period; c) Reduction to a lower post or timescale or to a lower stage in a time-scale of pay; d) Suspension without pay for
not more than 7 days; e) Dismissal from service;
f) Discharge from service;
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Suspension as a Measure of Punishment An employee found guilty of misconduct but


not dismissed or discharge in consideration of extenuating circumstance may be,
as an alternative punishment, suspended for a period not exceeding seven days w
ithout pay as well as subsistence allowance. Procedure for Punishment: An Employ
ee shall not be dismissed or discharged or otherwise punished unless: a) The all
egations against him are recorded in writing (framing of charges); b) He is give
n a copy of the Charge Sheet and given at least 4 days time to explain in writing
the charges; c) He is given a personal hearing by way of domestic enquiry, eith
er at his request or at the instance of the management; d) The Chairman of the D
SE or Vice-Chairman in his absence concurs with the decision for punishment by t
he Secretary in respect of all officials of the Dhaka Stock Exchange below him a
nd in respect of disciplinary action against the Secretary, Chairman and the boa
rd of Directors shall take the final decision. In case of punishment a copy of t
he order inflicting such punishment shall be supplied to the punished official.
An employee refused to accept any notice, letter charge sheet, order or any or a
ny other document addressed to him by the management it shall be deemed that the
same had been delivered to him if a copy of the same has been exhibited on the
notice Board and another copy has been sent to the address of official as availa
ble from the records of the office, by registered post. In awarding the punishme
nt the management will take in to account the gravity of the misconduct, the pre
vious record, if any of the person concerned and any other extenuating or aggrav
ating circumstances that may exist.
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4.3.17 Employee Benefits


4.3.17.1 Overtime: All employees up to the rank of Senior Assistant are entitled
to
overtime allowance for working beyond office hours. Members of the staff entitle
d to overtime allowance shall get it at thereat of double of their basic pay. Bu
t if they are supplied with refreshment by the office, they will get the same at
single rate. Overtime allowance for working on a holiday may also be given in t
he same manner as in a serial (i) above. But the incumbent working on a holiday
is also entitled to get traveling allowance for journey to end from his residenc
e at the rate decided by the management. No one will be entitled to overtime for
working less than an hour beyond office hours. Over time allowance will only be
given to an incumbent who will be detained for a specific assignment with prior
approval of the competent authority. 4.3.17.2 Festival Bonus: National Employee
s are entitled to a single festival bonus paid annually equivalent to one moths b
asic salary during their main festival period. Festival bonuses will be received
at least ten days before the following festivals: Muslim Hindu Buddhist Christi
an Eid-ul-Fitre, Eid-ul-Azah Durga Puja Buddha Purnima Christmas
If an employees main festival is not mentioned here the AGM, HRD should be inform
ed in writing about his/her main festival, and accordingly his/her festival bonu
s will be paid. Employees who have completed less than on e year of continuous s
ervice on the first day of the festival month will receive pro-data festival bon
us, calculated according to staffs monthly basic salary as of the festival month
divided by 12 multiplied by working length. If an employee has worked less than
one month, a minimum of one months period will be the calculation basis.
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If an employee is separated before the festival month, s/he will be paid the acc
rued amount with the final payment. The accrued value will be considered from on
e festival month to the next. HRD will inform the payroll unit of accounts secti
on to pay festival bonus to each regular and contract employees at least two wee
ks ahead of the festival date based on the religious affiliation indicated on th
e employees preliminary job application form. 4.3.17.3 Employee Remuneration: Whe
n people work for a company, they expect to receive from the company something i
n return for their efforts. Employee remuneration refers the Compensation and re
ward given by companies to their employees. The remuneration to employees can be
broadly divided in two types. The first is the pay, which they can spend as the
y please. The second is the job facilities provided to them to improve their eff
ectiveness and comfort on the job. These can be provides in physical form such a
s company car, or as payment of expenses like travel, lodging, dining and entert
aining incurred while performing company work. The amount of the remuneration as
well as the form and way in which it is paid has major implication on employee
performance and cost. The pay can have two components. A fixed pay independent o
f the performance levels of individual or groups of employee, and a variable pay
linked to the performance levels. Fixed amount is to satisfy need for income st
ability, and the variable component is to stimulate and reward greater effort. T
he fixed pay may be paid in several different forms and under different names li
ke basic salary, dearness allowance, city compensatory allowance, and house rent
allowance. Here it will be useful to clarify that although dearness allowance v
aries with the price index, it forms part of fixed component of employees earnin
g as it is not linked to on the job performance. Companies under different names
like incentive, commission and bonus also pay the variable pay. To simplify our
discussion here we will use the term incentive to include all types of
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variable components monetary compensation. The incentives can be of different ty


pes, and can be linked to the performance in different ways. 4.3.17.4 Food Allow
ance: This solution is designed to be used by organizations offering food or bev
erages allowance for their staff using reassurances, coffee shops, or any other
shops. The aim of this solution is to organize and control the three parties of
the allowance triangle, which are the employee, the organization, and the restau
rant. The software manages billing for allowance between the service providers a
nd the organization and provides the organization with allowance usage trends an
d statistical reports that helps to re-shape company policies. This allowance is
made for below executive level in DSE. 4.3.17.5 Special Bonus/Allowance: Accord
ing to the rules of special bonus, obtaining 60% marks in annual confidential re
port is one of criteria. The calculation of ACRs for the calendar year 2007 reve
als that all our valued employees (who have successfully completed one year) ear
ned 60% marks in their ACRs. According to the tenure of service in DSE, the tota
l employees of DSE are categorized in the following ways: 1) Members in the toplevel management on contract service. 2) Employees served DSE for a period of on
e year and above. 3) Employees completed six months but not one year. Special al
lowance for working on a holiday may also be given for executive level and above
to get entertainment and travel allowance at the rate decided by the management
. 4.3.17.6 Increment: Employee in all grades as specified will ordinarily-receiv
e annual increment subject to the performance, attendance record and conduct dur
ing the preceding year which shall be the basis of the annual increment. Increme
nt may be withheld as a measure of punishment. The competent authority ordering
such withholding of increment shall state the period for which such increment is
withheld. In case of promotion from lower
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to the higher post/grade, the incumbent who was already drawing more than the mi
nimum basic of the higher scale shall have the pay fixed after adjustment to fit
into the new scale.
4.3.18 Payment of Compensation (Group Insurance)
The employees of the Dhaka Stock Exchange From the date of his confirmation shal
l be covered by the Group Insurance under noted schemes at cost of the Dhaka Sto
ck Exchange. The Principal sum will be up to a maximum limit of fifteen limit of
fifteen months basic salary. The compensation program follows the recent market
rate of the costly to have a competitive position in the other a like industry a
nd community studies. DSE follows a high degree of cultural value and philosophy
. a) b) Loss of Life Permanent Physical disabilities making the person permanent
ly bed-ridden c) d) Permanent mental disorder Disability by paralysis or loss of
two or more limbs by amputation at of above wrist or ankle a) Total irrecoverab
le loss all sight in both eyes 4.3.18.1 Health Insurance: The employees of the D
haka Stock Exchange From the date of his confirmation shall be covered by the He
alth Insurance under noted schemes at cost of the Dhaka Stock Exchange. : The Pr
incipal sum. : The Principal sum. : The Principal sum. : The Principal sum. : Th
e Principal sum.
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4.3.18.2 Provident Fund: The Officers and Employees on regular employment of the
DSE shall be required to subscribe to the contributory provident fund of the Ex
change at the rate of 10% of their basic pay. The Exchange will contribute an eq
ual amount to the said fund. Procedure of withdrawal from and final payment of t
he fund will be governed by the Rules framed specifically for the purpose with t
he approval of the Government. 4.3.18.3 Gratuity: Every employee of the Exchange
who has completed at least five years of his/her continued service shall be ent
itled to enjoy the benefit. Gratuity shall not be paid to an employee whose serv
ice is terminated by the DSE on disciplinary measure. In case of death of an emp
loyee, gratuity shall be paid to the nominee(s) and/or legal heir(s) of the dece
ased employee at the usual rate for the period of service rendered to the Dhaka
Stock Exchange. In case of consolidated pay for the purpose of this clause, basi
c pay shall mean an amount so apportioned by the authority. Computation of annual
gratuity shall be made on the basis of 1 (one) months basis pay (last pay drawn)
of the employee concerned for each completed year of service from the date of h
is appointment/confirmation. For the purpose of payment of Gratuity, basic salar
y is defined as basic pay as per pay scale applicable, without any allowance but
inclusive of accrued increment. At the end of each year accrued Gratuity shall
be debited as expense and credited to a deferred liability account and properly
shown in the account of the Dhaka Stock Exchange.
4.3.19 Transfer
Job transfers generally fall into one of two categories: those initiated by mana
gement or those made in response to an employees request. Transfers initiated by
the employer may be necessary because of temporary workload imbalances; the need
to rotate employees to limit exposure to harmful conditions; corporate restruct
uring; dislocations caused by job elimination or reductions in force; and demoti
ons in response to disciplinary or performance problems. Employees may initiate
a transfer because they want new or broader experience; there is friction among
coworkers; they want to better use their skills; or they need
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accommodation for disabilities or family care responsibilities. Either way, tran


sfers may be temporary or long-term, depending on the organizations business need
s.
4.3.20 Termination
Employers should have termination policies to ensure consistent treatment among
employees whose working relationship with the organization is ending, for whatev
er reason. The Service of probation or temporary employee can be terminated with
out assigning any reason and the incumbent shall not be entitled to any compensa
tion for termination of service except his accrued benefits. The authority may t
erminate the service of the confirmed employee or call upon him to resign withou
t assigning any reason by giving him 3 (three) months notice in writing of 3 (thr
ee) months substantive pay in lieu thereof. However, such person will be entitled
to encashment of accumulated Earned Leave (if any), Gratuity and Provident Fund
. The Board of Directors shall have the right to remove, dismiss or retire from
the service an employee as a disciplinary measure or on medical ground. The serv
ice of an employee may also be terminated by giving 3 (three) months notice or 1
(one) months pay in lieu thereof in the eve nt of abolition of the post of the po
st being decided surplus.
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CHAPTER- 5
Recruitment & Selection Process OF Human Resources Department
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5.1 Recruitment
Recruiting refers to organizational activities that influence the number and typ
es of applicant who apply for a job and whether the applicants accept jobs if of
fered. Different companies follow different methods to acknowledge the labor mar
ket about their job vacancy and goes through a process to select the tight emplo
yees. The type of labor force arid the organizational culture and structure play
s a big role on how a company is going to recruit. As an independent & growing o
rganization DSE has adopted the traditional as well as new ways of recruitment.
The Assistant General Manger of the Human Resource currently heads this departme
nt. The major functions of this department are strategic planning and policy for
mulation for Compensation, Recruitment, Promotion, Training and developments, Pe
rsonnel Services and Security, All major personnel functions are integrated in t
he best possible way at DSE, which results in its higher productivity. The Human
resource officer monitors the employee staffing and administration activities.
The Training officer supervises Training, development & rotation activities. The
Human Resource Department is going to recruit huge number of qualified employee
s from March2009. The Recent Recruits are as follows:
Chief Executive Officer (C
O) Proposed. Chief Operating Officer (COO) Processing. Search for Professionals
(Different Departments) Have Just Completed. Executive On Probation (Fresh Post
Graduate) Processing. Project at Nikunja (Engineers) Have Just Completed.
5.2 Sources of Recruitment
At first, all the departments after employee need analysis send their requiremen
t to HRD through their respective divisions. After obtaining necessary approval
from the management, HRD sets target and prepare recruitment planning. According
to job specification MR goes for recruitment. www.dsebd.org - 64 -

5.2.1 Recruitment process is as follows:


1. Give advertisement in the daily newspapers 2. Receive applications and file t
hem, 3. Shortlist of the applicants 4. Fix date and time of a preliminary interv
iew 5. Contact with the applicants and inform them about the interview over tele
phone or letter 6. Fix further date and time for final interview if it is requir
ed and inform the interviewee accordingly 7. To prepare appointment letter for t
he finally selected interviewee 8. Give appointment to the person with a detail
job description. 9. Immediately after the recruitment separate employee file is
opened comprising all the relevant information of the particular employee. This
personal file is prepared, mainlined and updated by HRD. In fact one of the main
responsibilities of HRD is updating of all the personal file of the employee. R
ecruiting is the discovering of potential candidates for actual or anticipated o
rganizational vacancies. There arc many sources of recruiting like, internal sea
rch, advertisements, employee referrals /recommendations, employment agencies, t
emporary help services, different educational organization (schools, colleges an
d universities), professional organizations, casual or unsolicited applicants an
d also other sources. For the operative level employee recruitment; DSE gives ad
vertisement in the daily newspapers and also through on-line, candidates can fil
l of the application forms, and from there the candidates have to sit for an wri
tten test in Mathematics, English and General Knowledge and then IQ test finally
if they are qualified then they are called for an interview. The organization C
ontacts with the applicants and inform them about the interview over telephone o
r letter and then the final selection is done. Finally they Give appointment to
the person with a detail job description.
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For executive Level, they arc recruited through advertisement and sometimes exec
utives are also recruited from the recommendations and referrals of any current e
mployee of the organization.
5.3 Recruitment Procedure
Basically there are two broad methods of recruitment: External recruiting and in
ternal recruiting. Most organization has to use both internal and external sourc
es for generating sufficient number of applicants. Following is the discussion o
f how DSE uses these two methods foe their recruitment process,
5.3.1 External Recruitment
Usually most of the jobs in DSE are filled through external recruitment. And the
y have recruited extensively since their establishment. They would need more and
more new employees. Now let look at the methods used by DSE in their recruitmen
t process:
Media Advertisement (News paper) University recruiting Internet Inter
ns
5.3.2 Media Advertisement
Various media are used by organizations. Among media the most common way used, d
aily newspaper ads. Ads usually include the following: The requirements for the
job. For example the educational skills requite experience and Deadline for the
job application. Job tide foe fulltime job, but usually the advertisements do no
t provide much information about job.
5.3.3 University Recruiting
DSE informs the universities if they have any job vacancy. They provide the spec
ification of the job according to which the respective department of the univers
ities gives advertisement. For example, in Daffodil International University the
Department of Career Development Center (CDC) is involved in the job of informi
ng students about new jobs available by www.dsebd.org - 66 -

posting advertisements. Usually for DSE the job they offer in the universities p
osting are part time jobs and occasionally full time jobs. An example of job adv
ertisement is attached in the report. This process has been quite successful bec
ause many of the time college /university recruits turned out to be efficient; a
nd effective and later were recruited as full time employees. This part-time rec
ruitment process also gives universities students an opportunity to earn money a
nd also have and exposure to practical work experience. This is giving a social
standing for DSE.
5.3.4 Internet
DSE is few of the organizations in Bangladesh that uses Internet for recruitment
. It has a linking "Career page in its Home Page that gives a list of jobs availa
ble at present. It can go from operating level post to managerial level, and ful
l Lime to part time. The page provides an application form. This makes it easy f
or the job seeker to apply for a job with out going through the process of looki
ng for a job in the newspaper. Again this is a new and easy way of recruiting fo
r DSE because other than the initial cost, these docs not cost them much except
maintenance cost whereas news paper advertisement; is much more costly. Also thi
s provides them with list of new applicants in their database automatically- the
application form in the Internet is given below. From the form we can sec that
it is quite detailed and informative.
5.3.5 Interns
DSE recruits intern from different universities for example, Daffodil Internatio
nal University Dhaka University IBA, NSU and other different public and private un
iversity. It gives them as exposure of potential employee. There are number of p
urposes for these programs: Allows DSE to get specific projects done, Give the c
ompany an exposure to potential employees who may become their "recruiters"-Thro
ugh DSE docs not have special system of recruiting interns as permanent employee
s they do get some preference if they were efficient in their internship. For th
e interns it is a change to use talent in the real working environment and a pos
sible job opportunity.
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5.3.6 Internal Recruitment


There is evidence of internal recruiting in DSE, but it is not a structured proc
ess. For example, there is specific time period or method used to make the emplo
yees know about available jobs or vacancies.
5.4 Selection
Selection is the process by which an organization chooses from a list of applica
nts the person or persons who best meet the selection criteria for the position
available, considering current environmental conditions. Like any other organiza
tion there are actually multiple goals associated with DSE selections process. A
ll selection programs of DSE attempt to identify the applicants who have the hig
hest chance of meeting or exceeding the organization s standards of performance.
Through selection process DSE tries to find out the optimal match between the j
ob and the amount of any particular characteristics that an applicant may posses
s.
5.5 Selection Criteria
At the core of any selection system is an understanding of what characteristics
arc essential for high performance- One of the major goals of DSE selection proc
ess is to accurately determine which applicants possess the knowledge, skill, ab
ilities and other characteristics dictated by the job.
5.6 Categories of Criteria
The criteria used by DSE for making selection decisions can be summarized in sev
eral broad categories: education, experience, and personal characteristics, phys
ical Characteristics and others.
5.6.1 Formal Education
DSE wants to find the person who has the right abilities and attitudes to be suc
cessful and able to achieve the organization s goals. Usually, a large number co
gnitive, motor, physical and interpersonal attributes are present, because of ge
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were learned at their home, at school, on the job, and so on. For certain jobs D
SE stipulate the education requirement in a particular area of expertise, such a
s engineers for its technical sides. DSE prefers graduates from different Univer
sities and it also mentions the minimum grade point for the respected applicants
who can apply for the job. DSE always tries to set up the standards that arc ac
tually required by the job. Another useful criterion is used by DSE is experienc
e and past performance selection specialties believe that past performance on a
similar job might be one of the best indicators of ability and work related atti
tudes. They believe that the perspective employee who has performed the job befo
re and is applying for a similar job must like the work and must be able to do t
he job well.
5.6.2 Personal Characteristics and Personality Type
One of the most important criteria DSE uses as a selection criterion is personal
ity type and personal characteristics of the perspective applicants. Personality
characteristics include marital status, sex, and age and so on, DSE usually pre
fers male worker for its field side works, since they like to accept a transfer
and lengthy overseas assignments- Age also use as criteria for selection purpose
. DSE uses a minimum and maximum age restrictions for jobs but they use age as s
election criteria only after a careful thought and consideration. DSE always pre
fers good computer and communication skills as one of the criteria. DSE consider
s that its applicants must have good interpersonal skills for completing the job
effectively. DSE also prefers one particular aspects of personality-as being ou
tgoing -an important criterion for the workers who have to spend most of the tim
e with customers.
5.7 Selection Process
The selection decision is perceived as a series of steps through which applicant
s pass. At each step, more applications are screened out by DSE or more applican
ts accept other job offers and drop from the list of applicants. The steps follo
wed by DSE arc discussed below. 5.7.1 Step 1: Initial Screening DSE usually star
ts its selection process by asking an applicant to complete an application form.
DSE asks for enough information to determine whether the individual is minimall
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qualified for die position. Usually, DSE uses application blanks as a screen too
l for jobs that requires some types of professional certification like an ACCA,
CMA, CA for business graduates even MCP for Computer Engineers. In this way the
application blank can clement the need for subsequent interviews to gather this
information. This makes the selection process of DSE far more efficient first, b
y reducing the number of applicants that need to be interviewed and second, by a
llowing interviewers to focus on other kinds of information (personality, techni
cal and communication skills). While designing application blank DSE gives more
emphasize on that information which arc important for the organization and help
die organization to make a better job related assessment of the applicant. DSE a
voids those types of questions that related to race, physical health, disabiliti
es and so on. After collecting this information DSE selects 30-40% of the applic
ants who have minimum qualification for the job and DSE does this screening proc
ess through computer in order to avoid -my personal biasness or unfairness. Appl
icants who are judged as minimally qualified on the basis of the application bla
nk will then proceed to the next phase of the selection process. 5.7.2 Step 2: C
ompleting the Application Form Once the initial screening has been completed, ap
plicants are asked to complete the organization s application form. The amount o
f information required may be only die applicant s name, address, and telephone
number. In general terms, the application form gives a job-performance-related s
ynopsis of what applicants have been doing during their adult life, their skills
, and their accomplishments. Applications are also useful in that they obtain in
formation the company wants. 5.7.3 Step 3: Employment Written Test Organizations
historically relied to a considerable extent on intelligence, aptitude, ability
, and interest tests to provide major input to the selection process. Even handw
riting analysis (graphology) and honesty tests have been used in the attempt to
learn more about the candidateinformation that supposedly leads to more effective
selection. The selection process of DSE differs for each level in the organizat
ion. The entry-level positions necessitate written tests and viva whereas senior
level positions requires viva.
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5.7.4 Step 4: Cognitive Ability Test The Ability Tests are concentrated to judge
the candidates: Oral communication & written communication skill, Analysis and
judgment. Creativity Initiative. Patience. Conflict management skills, Organizat
ional sensitivity and Tolerance for stress. DSE is planning to introduce psychol
ogical and personality test in their selection process. DSE can measure the pers
onality characteristics and temperament through these techniques. So, by introdu
cing new techniques with its existing techniques DSE can effectively select the
applicants who have potential qualifications for performing the job. 5.7.5 Step
5: Employment Interview DSE uses interview as a selection technique because thro
ugh interview it can identify die qualified candidates. While designing intervie
ws DSE usually follows two strategies for making the most out of an interview ar
c structuring the interview reliable and valid, and training managers to use the
available interviewing techniques. During the selection process in DSE, the HR
head in the presence of the head of the specific department interviews the poten
tial candidate where there is a vacancy. The HR uses a more or less informal app
roach to interview the candidate. He often repeats certain questions to sec if t
he information given is right. There are different kinds of interviews like sele
ction interview, career planning interview performance appraisal interviews, cou
nseling interview, disciplinary interview, exit interview etc. The interviewers
in the interview board of DSE include:
President of DSE Directors or Members of
DSE - 71 www.dsebd.org

CEO of DSE HR Head


This combination makes die interviewing process more efficient and effective. 5.
7.6 Step 6: Reference & Medical Check Up The next step in the selection process
is to go through an investigation of those applicants who appear to offer potent
ial as employees. This include contacting with the previous employer or referral
s to confirm the candidates work record, behavior, attitude and other performanc
es which was appraise or prominent in that person. This also includes contacting
other job related and personal references and verifying the educational accompl
ishments shown on the application. Also the candidates have to go through a medi
cal check up to determine whether they ate physically fit to work or not. The ma
jority of physical examinations are currently required to meet the minimum stand
ards for the organization s group life and medical insurance programs and to pro
vide base data in case of worker s compensation claims. Routine check-ups like b
lood-group test, H1V test, Eye power, and hepatitis, drugs and fitness test. The
se are only to see whether the person could fit in the actual job setting. 5.7.7
Step 7: Selection Decision The selection decision is usually the ultimate decis
ion of DSE. After passing the entire step DSE decides which applicants is hired
by die organization. A: this stage, die managers make [he final decisions and of
fer the available job to potential candidates who arc qualified after passing al
l [he steps-Through this selection process DSE choose from a list of applicants,
the person or persons who best meet the selection criteria for the position ava
ilable, considering current environmental conditions. 5.7.8 Step 8: Job Offer Th
ose individuals who perform successfully in the preceding steps are now consider
ed to be eligible lo receive the employment offer. Those individuals, who perfor
m successfully on the
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employment tests and the comprehensive interview and arc no: eliminated by the d
evelopment of negative information on either the background investigation on the
physical examination or the probation period, arc considered to be eligible to
receive an offer of employment- Finally, among the potential applicants the best
applicant is chosen whose score is high in the justified evaluation sheet and c
onsidered to be selected as an employee.
5.9 Critical Aspects of Labor force of DSE
There are some of the special and interesting aspects of DSE labor force, For ex
ample:
Young and Energetic Work force
The Company is reputed to have young and energetic work force, which is the best
asset of it. It seems that DSE is attracting the young generation, as the compa
ny has been able to recruit substantial number of young people.
Female Workforce
The other aspect is DSE is encouraging female workers. Though still now, the num
ber of females is still not that high. Trends in Recruitment
Since the beginning, DSE has made necessary recruitment to all-important positio
ns. The trend in recruitment of employees shows that it has a decreasing trend a
nd especially female employees,
Gender Basis of Employees
Female employees are well represented at DSE with a fairly large number, of them
employed as officers* But there is the glass ceiling as we can1 sec from the gr
aph that at the managerial level there are few numbers of female employees. Perf
ormance evaluation is the activity used to determine the extent to which an empl
oyee performs work effectively, DSE uses both Formal an informal methods of perf
ormance evaluation.
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CHAPTER-6
Findings, Recommendations and Conclusion
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FINDINGS 6.1 Findings on HRD


HRM is a very vast and elaborate section of overall management process. Behind e
very success or failure HR is considered the ultimate deciding factor. That is w
hy DSE always gives high priority in the overall HRM practice. From report here
I found few key issues which are as follows:
As a large organization, DSE has hu
ge activity especially in HRD but it is found that in HRD it has only 8 numbers
of employees including One AGM, One Manager, One Sr. Executive, Two Executive, O
ne Sr. Office Assistant and Two Office Assistant which insufficient for this lar
ge Department. The employees are not kept update on new polices and procedures w
hich infers the point that HR Department is not all proactive. The HR department
should make sure that the employees aware of any new polices and procedures.
Th
e HR Department maintains a personal record file for every employee and now it i
s time to integrate the personal record system with Human Resource Information S
ystem (HRIS) database to make decisions. It is noticed that the Annual Confident
ial Report (ACR) is prepared every year but result is not goes to the right way.
It is also found that the HRD does not motivate employees appropriately, which
really drawback for the output of organization.
New technologies are not adopted
in the HR Department. It has been found that in the HR Department has qualified
personnel but few of them are technically unskilled.
It also noticed that train
ing of employees is not adequate for their profession.
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It is found that the employees performance appraisal process of DSE is irregular.


It also noticed that the evaluation job satisfaction is irregular.
It is also f
ound that employee turn over is high in DSE. Since DSE always gives much emphasi
ze on HRM especially in recruitment and selection process phase. In the process
of studying the issue following aspects have been identified and deserve explana
tion:
6.2 Staff or Personnel Planning
Employment Planning is the process of formulating plans to fill future openings
based on an analysis of the positions that are expected to be open and whether t
hese will be filled by inside or outside candidates. Filling of future positions
can be designated from maintenance clerk to CEO. According to discussion with D
SE officials, it reflects that the organization docs not develop and update peri
odical personnel planning for recruitment. Personnel Planning and recruiting dir
ectly affect employer commitment because commitment depends on hiring employees
who have the potential to develop. Developing Personnel Plans requires three for
ecasts: 1. One for personnel requirements 2. One for the supply of inside candid
ates 3. One for the supply of outside candidates But according to recent practic
e, internal problems, DSE docs not allow HR to develop Long-term personnel plann
ing for recruitment opportunity for new employees.
6.3 Lack of Forecasting of Internal and External Recruitments
Internal recruitment refers to recruitment from existing internal staff as candi
dates for other requited positions of an organization and external recruitment f
or external candidates. In DSE, Internal recruitment neither is nor structured a
ccording to their verbal statement. They
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do not go for forecasting the supply of Inside Candidates for cross-functional a


ctivities of specialized, professional or general areas of works. Inter departme
ntal exchange or recruitments of internal candidates require necessary trainable
technical and interpersonal skills for enhancing level of efficiency of staff.
6.4 Reference Checking
According to interview with DSE personnel, for recruiting external candidates DS
E usually selects candidates mainly on the basis of education, experience, perso
nal character, physical character and others. But they do not make more emphasis
on reference checking. But background investigation and reference checking is v
ery important too avoid hiring mistakes and negligent hiring which could be disa
strous and could lead to problems of absenteeism, tardiness, poor work quality a
nd insincerity.
6.5 Equal Employment Opportunity Benefits
In the Recruitment & Selection process DSE must address the issue of equal emplo
yment opportunity benefits for employees in all employment location. According t
o interview with DSE we came to know that while screening for recruiting and sel
ection, they avoid questions of race, disabilities, and health matters in the fo
rm. The usually make emphasis on "who can do better for organization ", On the o
ther hand, I found that the number of female employees out of total employees is
only 20%.
6.6 Absence of Diverse Workforce
"Mote diverse workforce is not social responsibility but it is a necessity" -men
tioned by Carry Dessler. Harmonizing and sharing knowledge along with different
cultural background, race, color, and age would definitely add value to the orga
nization. DSE does not have very diverse workforce as 1: encourages only the you
ng age group for recruitment.
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7.1 Recommendations
Getting the right people, at the right place and time is crucial for the success
of each and every organization. The job of the selection process is to identify
die right kinds of people for the job. So there are few recommendations for HRD
in my perspective.
Since HR activities are expanding day by day and as a large
organization, HRD should increase their employee for better performance. The HR
department should make sure that the employee aware of any new polices and proce
dures either adopted or not. Since it has found lack of motivation on employees
so HRD can motivate to the employee for better output.
Salary, bonus or other fi
nancial benefits are not up to the mark as other financial organization. So it s
hould be clear. Otherwise employee turn over rate will be increased.
DSE should
create better opportunity like promotion, incentive so that employees turnover r
ate can be prohibited. This is the era of modern technology of computing so HRD
should adopt latest configured Computer, Internet, Fax. Now days without this HR
D cannot move. The Human Resource Information System (HRIS) is a software or onl
ine solution for the data entry, data tracking, and data information needs of th
e Human Resources, payroll, management, and accounting functions within a busine
ss. An effective HRIS provides information on just about anything the company ne
eds to track and analyze about employees, former employees, and applicants.
It i
s found that the employees performance appraisal and job satisfaction process is
irregular. So HRD should make sure it is efficient and effective. Since Annual C
onfidential Report (ACR) is prepared every year for the employees and after resul
t should make in a right way so that nobody can suffer.
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Since few unskilled employees in HRD so they should proper trained up and make s
ure that they are technically sound for the regular HR activities.
Since DSE always gives much emphasize on HRM especially in recruitment and selec
tion process phase. In the process of studying the issue following recommendatio
ns have been identified and deserve explanation;
Staff Planning is the first imp
ortant factor for successful recruitment for long-term benefit of an organizatio
n. Therefore, they should develop both long short-term staff and personnel plann
ing for recruitment. Factors in forecasting Personnel needs should not taken int
o consideration; 1. Quality and nature of employees 2. Technological and adminis
trative changes 3. Available financial resources DSE needs to forecast the suppl
y of the internal candidates through: 1. Qualification inventory 2. Personnel re
placement charts 3. Position replacement card
In order to make structure recruit
ment, HR should make for planning and forecasting the supply of internal candida
tes in die first place. Qualification or skill inventory plays an important role
for this purpose. It should include: Work experience, stock, capital market, in
dustry experience, formal education, training information and data in compliance
with equal employment opportunity conditions. DSE verifies the accuracy of fact
ual information provided by the applicants. But they should make reference check
ing more productive, they should also emphasis on uncovering damaging background
information such as criminal records or any previous termination due to employe
es fault and insincerity, DSE should make a reference audit requires contracting
:
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1. At least two Superiors 2. At least two peers 3. Two Subordinates


Some suggest
ions for DSE for collecting Background information: 1. Check al! Applicable stat
e law 2. Information should not be obtained which will not be used 3. Informatio
n should be job related and specific 4. Information should be kept as confidenti
al and up to data 5. Unreasonable investigation should not be authorized
For selection and recruitment of External candidate, DSE should also emphasize o
n: 1. General economic conditions 2. Local market conditions 3. Occupational mar
ket conditions as well as other criterion

DSE should hire and encourage qualified women employees to make a healthy gender
balance, which would definitely lead DSE as equal opportunity employer. They ca
n also gain comparative advantages in this regard.

DSE can take steps to actively recruit more diverse work force especially for re
cruiting minorities, older qualified people and women. Thus they contribute not
only as profit maximizing but also as socially responsible reputed organization.

It is also found out that not all the people at the HR Department at DSE have an
academic background in Human Resource Management So recommendation is that all
Personnel Relations Managers should have a degree from the discipline of Human R
esource Management. This will enable DSE to manage its people more effectively a
nd efficiently.

It may change the advertisement policy for the vacant post and new rules should
be sent to the Human Resource department for Recruitment and Selection process.
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It is seen that in case of DSE, some steps are occasionally omitted. This sort o
f practice may sometimes make the selection process not as reliable as it should
have been. Recruitment process should be transparent and in accordance with org
anizational recruitment policies, so that the efficiency of the employees can b
e ensured to some extent. So I recommend that the management may strictly follow
all the steps at all times without any exceptions.
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7.2 Conclusion
The role of Dhaka Stock Exchange Ltd has been remarkable in recent years. It has
gained the confidence of public and is able to attract more funds. At the end o
f last decade what was impossible has now become possible and any company listed
with Dhaka Stock Exchange can expect to sufficient funds through it. In 2nd Jul
y 2009 DSE has crossed Tk.1000 crore which is landmark for capital market in Ban
gladesh.
The Dhaka Stock Exchange has been able to attract a sufficient volume of foreign
funds and the number of investors is growing day by day. If this trend continue
s Dhaka Stock Exchange market will be efficient one in the near future .At the e
nd of year 2010 Dhaka Stock Exchange is expected to become one of the major stoc
k markets in this region.
So far we have observed that Dhaka Stock Exchange has suffered from ups and down
s and it can be attributed to the efficiency of the members and some of the cons
istent policies of the Government with more experience. In the coming year in de
aling with such busy capital market both the Dhaka Stock Exchange members and Go
vernment policy makers are expected to be more consistent in their practices and
policies. Their product role in the future will certainly be a major factor in
the performance of Dhaka Stock Exchange market. The first priority of HR departm
ent is to assist and support functional departments. DSE has focused highest pri
ority in the human resource management and in consequence of that it has establi
shed human resource function under a separate department.
Finally regarding recruitment and selection DSE should plan future recruitment p
rocedure and strategies along with Human Resource Management, bearing in mind fo
r better inter organizational communication, gender balancing, forecasting the s
upply of internal and external opportunity, benefits and steps for Diverse workf
orce. Thus DSE can be recognized not only as profit maximizing organization but
also as reputed socially and globally responsible organization along with effici
ent and effective Human Resources as Human Capital.
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Bibliography
1.
Professor M. Shahjahan Mina, Advisor, Faculty of Business and Economics, Daffodi
l International University.
2.
Ms. Hosne Ara Pervin, AGM, HRM, Administration & Training Affairs, Dhaka Stock E
xchange Ltd. 9/F Motijheel C/A, Dhaka-1000.
3.
Mr. Mohammad Ebna Reaz, Executive Officer, Merchant Banking Wing, Head Office, S
outheast Bank Ltd, Dilkusha C/A, Dhaka-1000.
4.
Md. Saiful Islam, Executive, HRM, Administration & Training Affairs, Dhaka Stock
Exchange Ltd. 9/F Motijheel C/A, Dhaka-1000.
5. 6.
Ms. Sharmin, Research, Development & Information Personnel/Human Resources Manage
ment by David A. DeConzo and Stephen P. Robbins.
7. 8. 9. 10. 11. 12.
DSE Monthly Reviews for May, 2009 DSE Annual Report, 2007-2008 www.dsebd.org htt
p://www.bdstock.com/marketcapitalization.htm www.dse.com.bd www.secbd.org
www.dsebd.org
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Syed Kamal Uddin (Suman) Suman_bd01@yahoo.com