Discribe Rules and Regulations Maintained by Dhaka Stock Exchange

Discribe Rules and Regulations Maintained by Dhaka Stock Exchange

Rules and Regulations maintained by Dhaka Stock Exchange

The Dhaka Stock Exchange’s activities are regulated by the following Acts & Regulations:

  • Companies Act, 1994.
  • Securities and Exchange Commission Act, 1993
  • Securities & Exchange Commission Act, 1993 (Act repelling controller brokers)

Regulations, 1994.

  • Dhaka Stock Exchange

a) By laws, b) Listing rules, c) Memorandum of Association, d) Articles of

Association and e) Settlement of Transaction & Regulation.

DSE had many new rules and regulation as well as amendments in the rules & regulation of Stock Exchange, Issues in the overall capital market. Some major ones are as follows:

  • The National Parliament passed “The Depository Act, 1999” on the 5th of April 1999.
  • SEC adopted “ Public Issue Rules 1998” which was gazette on the 25th January 1999 and subsequently brought some amendments in this rule on the 28th April 1999.
  • SEC has approved the “Margin Rules 1999” to facilitate proper administration of credit facilities extended by the brokers to their clients and to enhance liquidity in the Exchange.
  • The cabinet on June 7th, 1999 approved the amended to the “Trust Act 1882” to facilitate the investment of 25% of pension and insurance funds in the capital market.
  • SEC has extended the time limit for brokers/dealers to continue underwriting business from 30 to December 31, 1999.
  • SEC amended the “Securities & Exchange Rules 1987” with a view to removing the “Counter Party Identification” facility from the trading of the Stock Exchange.
  • SEC amended the “Settlement of Stock Exchange Transactions Regulations 1998” envisaging stern measures against defaulters for failing to deliver securities or make payment within stipulated time.
  • DSE has a policymaking Body of 24 members, of whom 12 are elected and 12 are selected councilors.