Report on Improving Operations of CDBL Department of Haji Ahmed Brothers Securities LTD

Report on Improving Operations of CDBL Department of Haji Ahmed Brothers Securities LTD

Executive Summary : Haji Ahmed Brothers Securities LTD. is incorporated in share market from 1932. HABSL is one of the primary members of Dhaka Stock Exchange. HABSL is the top ranked brokerage house. It has two branches in Dhaka Stock Exchange. Twenty five employees are employed in HABSL.

However, this report consists of three parts. First part gives the general idea of brokerage houses of Dhaka Stock Exchange. Basic information about Haji Ahmed Brothers Securities LTD. Which services they offer how many department Haji Ahmed Brothers Securities LTD. has and activity map of all departments.

Second part discuss deeply about the CDBL department. Which services they offer? How they serve and which formalities have to full fill the customer to have required services.

Third part is the problem identifying and problem solving part. In this part I am trying to identify which problems CDBL department of Haji Ahmed Brothers Securities LTD. face and how to solve those problems.


1.1 Emergence of the Report

This intern report is prepared to fulfill the basic requirement to complete the B.B.A. program of USB, University of Liberal Arts Bangladesh (ULAB). I have done my internship at Haji Ahmed Brothers Securities LTD. (HABSL) from October 01, 2008 to January 01, 2008 and work on improving operation of CDBL department of HABSL.

1.2 Backdrop of the Report

Theoretical knowledge becomes more fruitful and effective when it is applied in real life. We can understand the benefits of our theoretical knowledge when we get the chance to apply them in the practical life. Obtaining theoretical knowledge on any subject is only the halfway of it because implementation of theoretical knowledge is the ultimate goal to obtain it. Being a very practical business program B.B.A. requires a large extent of implementation of its theories and procedures in the real life. To meet up this requirement I have done my internship and prepared the report titled “improving operations of CDBL department of Haji Ahmed Brothers Securities LTDl”. As a student of B.B.A. program preparing this report played a significant role to make my knowledge more transparent and sharpen.

1.3 Objectives of the Report

The objectives of preparing the report are as follows:

   To meet up the requirement of B.B.A. program;

   To get familiar with the real corporate environment;

1.4  Methodology of the report: Mainly I have collected data from two sources.

These two sources are as following.

      Primary source


The primary sources of my information are as below

        Direct observation

        Questioning the concerned persons.

        Talking with client.

The secondary sources of my information are as below

        Desk report of the related department

        Other manual information

      Different reference books of the library of DSE

1.5 Limitations

In preparing the report I have faced some problem which can be termed as limitation of the report. The report could be more resourceful one if the limitation were not created. The limitations were as follows:

      Sources of information were very limited ;

      Information were not available in required format;

      Related paper and documents were unavailable ;

      Time to prepare the report was very short ;

      My personal limited knowledge regarding report writing;

2.1 Brokerage firm

Brokerage firm originated from the concept broker. To know the brokerage firm we should have good idea about broker.

A broker is a person who acts as an intermediary between a purchaser and a seller in share market this brokers are known as share broker.

A brokerage house is a company licensed to buy and sell stocks or securities. Brokerage house acting as an intermediary between buyers and sellers. A brokerage house typically employs brokers who carry out the wishes of the firm’s clients as they pertain to the trading of stocks.

Brokerage firm completes any necessary legal paperwork, obtains the appropriate signatures, and collects money from the purchaser to give to the seller.

Broker services are usually provided on a commission basis. Fees are variable, depending on the degree to which the brokerage is involved in decisions about purchase. Some stockowners give their brokers power of attorney to make decisions about when to buy or sell stock and depend upon their brokers for researching new stock for purchase.

According to Wikipedia“A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Distinguish agent: one who acts on behalf of a principal.”

According to Wikipedia, “A stock broker or stockbroker is a regulated professional who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors.”

According to Investor Word “An individual or firm who acts as an intermediary between a buyer and seller, usually charges a commission. For securities and most other products, a license is required.”

According to Oxford Dictionary of Business (third edition) “An agent who buys and sells securities on a stock exchange on behalf of clients and receives remuneration for this service in the form of a commission.

2.2 History:

In 1602, the Dutch East India Company became the first publicly traded company in which shareholders could own a portion of the business.  The earliest brokerage firms were established in London coffee houses, enabling individuals to purchase stocks from a variety of organizations. They formally founded the London Stock Exchange in 1801 and created regulations and memberships. During the 1900s, stock brokerage firms began to move in a direction of market makers. They adopted the policy of quoting both the buying and selling price of a security. This allows a firm to make a profit from establishing the immediate sale and purchase price to an investor. A large share of the brokerage firms have moved to an online format. Now shares are traded through online.

2.3 Key Aspects of Brokerage

The definition of brokerage has brought out the following essential elements or aspects of lease:

Trader: They are main buyer and seller of share. Broker houses earn there commission by buying and selling stock of trader.

Buyer: Investors who come to brokerage housed to buy share they are buyer.

Seller: Sellers who come to brokerage houses to sale there share is known are seller.

Broker: People, who work for brokerage houses, help to trader to buy or sale there stocks to earn commission are known as broker.

Acting as a principal: Stockbrokers also sometimes or exclusively trade on their own behalf, as a principal, speculating that a share or other financial instrument will increase or decline in price. In such cases the term broker makes little sense and the individuals or firms trading in principal capacity sometimes call themselves dealers, stock traders or simply traders.

Transactions by stock brokers: When acting as an agent, the stockbroker typically charges the client a flat fee and/or a percentage-based commission for undertaking the trade, and the price quoted the client must be the best price available in the market.

2.4 Types of Brokers:

There are different types of investment brokers. They range from the full service broker (which is very costly) to the online broker (which is very cheap).

Full Service Broker: Charges the highest fees, usually has an in-house research team who researches and recommends stocks to buy. Sometimes the stock recommendations are those their company specializes in. This information is usually made public by the company. In a full service firm you are given your own personal broker who receives a commission for selling you the investment, but on the other hand they can possess valuable knowledge you do not have access to.

Discount Broker: Gives you a discount in exchange for doing your own research. You are usually given a list of recommended stocks to research.

Online Broker: Is the newest form of broker. Their service is run online. You are given research, charts and investment news to research your own investments. Recommendations of stocks to research are sometimes given. They are usually the cheapest way to purchase investments, but you must know investment basics before you can use these services.

In Bangladesh, brokerage houses don’t follow strictly any one of above rule. Bangladeshi broker just do trade on behalf of investor and get there commission. They give various information to investor.

2.5 Brokerage terms:

Front office: This is a description of the part of a brokerage firm that is “client facing”. The sales staff, brokers and traders are part of the front office. Functions of the front office include acquisition and entry of orders, fulfillment of the orders, and all the regulatory reporting for the orders.

Back office: The back office is where the clearance processing of the trades is done. Transfer of securities and money and the tracking of “failure to deliver” is handled. Securities lending for a brokerage firm, wherein shares of a security that is being sold short are located to ensure they can be delivered, is usually included in the back office as well.

Bulls: A bull is a term used in the stock exchange market to refer to a stock market optimist who believes that share prices are likely to go higher, and who acts according to his investment operations.

Prime brokerage: Prime brokerage is the generic name for a bundled package of services offered by investment banks and securities firms to hedge funds and other professional investors needing the ability to borrow securities and cash to be able to invest on a leveraged basis and achieve an absolute return

2.6 Benefits of brokerage houses:

  1. Fully automated trading process which is broker independent.
  2. Traders have direct control over their trading portfolio.
  3. Investors get Real-time market data.
  4. Faster trade execution which is crucial in day trading.
  5. Low capital requirements.
  6. Easy to open account and easy to manage account.
  7. No geographical limits.
  8. Online trading favors active traders, who want to make quick and frequent trades, who demand lesser commission rates and who trade in bulk on leverage.

2.7 Disadvantages of brokerage house:

  1. Need to fulfill specific activity and account minimums as demanded by the broker.
  2. Greater risk if trades are done extensively on margin.
  3. Monthly software usage fees,
  4. Chances of trading loss because of mechanical/platform failures and need of active speedy internet connection.
  5. Online traders are fully responsible for their trading decisions and there will be often no one to help them in this process.

3.1 Brokerage house in Bangladesh:

Dhaka Stock Exchange (DSE), founded in 1954 with eight primary members. Haji Ahmed Brothers Securities LTD. was one of the primary members. That time market the market was characterized by a handful of listed companies, narrow shareholding base. In the beginning of 1990 this market starts growing at high rate. Opportunity of Brokerage houses increases. Then in 1993, the Bangladesh market was “discovered” by some foreign brokerage houses based out of the Far-East (Smith New Court Hong Kong being one). Against the backdrop of high market valuations globally, the shares of a few DSE companies (large local corporates like Beximco and Apex and some MNCs) were on offer at bargain prices. The foreign brokers managed to persuade some fund managers, who had a taste for exotic and risky Asian stock, to include some of these stocks in their portfolio.

Now LankaBangla Securities Ltd retained the most active member position in both the bourses, Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) in the outgoing year 2008. LankaBangla Securities grabbed the top position for the third consecutive year on DSE and fourth consecutive year on CSE. Apart from LankaBangla Securities, the other top nine brokers in terms of turnover in the immediate past calendar year on the DSE were ICB Securities Trading Ltd, AB Bank Foundation, IDLC Securities Ltd, Prime Finance and Investment (PFI) Securities Ltd, Multi Securities and Services Ltd, NCC Bank Ltd, Dhaka Bank, CMSL Securities Ltd and Wifang Securities Ltd.

3.2 Objectives of Brokerage firms in Bangladesh

Brokerage firms in Bangladesh operate with the following objectives

      Provide service with high degree of professionalism

      Respond to customer needs with speed and accuracy

      Share their values and beliefs

      Grow as our customers grow

      Provide products and services at competitive pricing

      Ensure safety and security of customers’ valuables in trust.

Share market is a growing sector of Bangladesh. People are interested to invest in share market. Lots of new investor comes into share market. It also attracts the foreign investors. So government should take some important step which will help local investors as well as foreign investors.

Haji Ahmed Brothers Securities LTD (HABSL)

4.1 Overview

Haji Ahmed Brothers Securities LTD (HABSL) is a Bangladeshi company. The objective of HABSL is to ensure grater service to its clients. HABSL was one of the pioneers in establishing brokerage house in Dhaka Stock exchange. Since its inception, HABSL has played a catalytic role in Dhaka stock Exchange for its clients.  The Board of Directors of HABSL consists of successful entrepreneurs and seasoned administrators. The management of HABSL consists of highly qualified, experienced and motivated professionals.

HABSL was incorporated on 01 June 1932. It is a private Limited company. The registered office of the company is situated in Modhumita Building (5th Floor), Motijheel C/A, Dhaka – 1000. HABSL is a well-known brokerage house in Dhaka Stock Exchange because of its client services. Now HABSL has two branches in Dhaka stock Exchange and other branch offices in Chittagong with a good customer service.

4.2 Shareholders

On 30 June 2008, the paid up capital of HABSL was 5,500,000 Tk. As it is private LTD. Company. It has three partners. They are Mr. Ikbal Dada, Mrs. Bilqis Dada and Aysha Dada. All three hold the total ownership of HABSL. All these financial information are taken form audit report of HABSL. The shareholding pattern of HABSL is given below:

Currently HABSL issued fifty five thousand shares. Among those shares which partner has how much shares are given below.

                 Table: 1, name of share holders and numbers of share they hold

Name of the PartnersNumber of Shares
Mr. Ikbal Dada


Mrs. Bilqis Dada


Mrs. Aysha Dada


Currently HABSL issued fifty five thousand shares. In term of percentage which partner has how much percentages of shares are given below.               

 Table: 2, name of share holders and percentages of share they hold

Name of the PartnersPercentages of Share
Mr. Ikbal Dada


Mrs. Bilqis Dada


Mrs. Aysha Dada


 4.3 Share holder’s partnership positions are given below in pie chart:

Major share holder is Mr. Ikbal Dada following to Mrs. Aysha Dada and Mrs. Bilqis Dada.

4.4 Board of Directors:       

Table: 3

 Mrs. Bilqis Dada
Managing Director
 Mr. Ikbal Dada
Executive Director
 Mrs. Aysha Dada

4.5 Management Team

Table: 4

Mr. Ikbal dadaManaging director
Mrs. Aysha DadaExecutive directors
Mr. Rejaul KarimChief Executive Officer
Mr. shahjahanSenior manager
Mr. KamruzjamanSenior manager

 4.6 Financial Performance

Financial performances of HABSL for last five years are given briefly below:

Table: 5


   Taka in Millions





Operating Result             








Profit before tax




Profit after tax








 From the table, it can be observed that in 2008 HABSL was succeed to maintain its revenue growth rate though expenses has also increased the same time. In case of profit after tax, HABSL has stared to lift up the margin after relatively poor performance in 2006.

4.7 Departments of HABSL

HABSL has three departments. Departments are CDBL department, ACCOUNTS department and trade department. To operate a brokerage house efficiently every department is very important. CDBL helps to have an account and manage the account position hold shares of clients. Account department manage financial account of client. In trade department clients buy and sell there share. To perform these activities all three departments have to perform some routine task. The activities of three departments are given below.

 4.7.1 CDBL

CDBL department is the most important department of any brokerage house. HABSL has CDBL department. Tow full time work for CDBL department it work load increase then one or two come to CDBL operation to help the existing employees. Activities of CDBL department of HABSL are linked with main CDBL established in Kawran bazaar. In HABSL they use software given by CDBL also linked through internet. CDBL department perform such as Settlement, Clearing accounts, Account Opening, Dematerialization, Rematerialization, Buying & Selling, Off Market Settlement, Freeze and Suspension, Transfer & Transmission, Pledging. Customer care services are included in CDBL department of HABSL. Customer care services are CDBL print, portfolio print, Ledger print. B/O account opening, Link account, Account closing and giving important information to customer. This department has to perform some routine task everyday.

HABSL has to perform some other activities. CDBL department perform all activities through using   Versatile Engine for Depository Accounting System software. Some menu like Demate, Host Manage Report, Master File, Master Report, Operator Consuls and Request Report are used frequently.


Accounts department of HABSL is a busy place. Three employees work for Accounts department. This department has to perform some routine task such as Customer account balances confirm, Cash/ Claque received from customer, DSE, AB BANK, Cash/ Claque payment to customer, DSE, AB BANK, Bank reconciliation, Daily accounts preparation. They also give customer care services. Customer services such as receive money, payment to customer, account information, signature matching. These are shown in a table.

 4.7.3 TRADE:

Brokerage houses are one kind of market place. Investor come here to buy and sell there share. HABSL has a trade department where investors sell and buy share. DSE wants every brokerage house must use same software.  Every brokerage house use a software named TESA to trade. There are six traders in HABSL. They just collect sale order or buy order from customer and then they sale or buy for customer by using this software. Four types of market at DSE

      Public Market: In this market instruments are traded in normal volume.

      Spot Market: Instruments are traded in normal volumes under corporate action if any.

      Odd lot Market: Odd lots of all Instruments are trade in this market.

      Block Market: Instruments are traded in bulk volume. Here is an overview of TESA software.

Client / Server: TESA’s Client / Server architecture enables an efficient allocation of computing resources and provides easily modified user-friendly interfaces. TESA workstations operate under Windows 95 and can function either as servers on a broker’s network or as workstation. These are used to perform trading and settlement activity by the brokers. Functions of TESA

      Market Information:  Supplying all market information needed to formulate the buy and sell decisions.

      Order Management: Accept, validate and store orders and quotes from broker workstations and / or systems.

      Order Execution: Automatically executes orders when buy and sell prices match.

      Trade Reporting: Trade execution reports are provided to each trade participant, to the settlement system and / or the depository and to the market.

      Index Calculation: Calculates and publishes market indices (DSE General Index & Weighted Average Index.)

      Market Access: Provide exchange members with efficient affordable GUI-based tools for accessing the market.

This is the trader work station. Normal public order interface of TESA.

4.8 Services provided

A transaction on a stock exchange must be made between two members of the exchange — an ordinary person may not walk into the New York Stock Exchange (for example), and ask to trade stock. Such an exchange must be done through a broker.

There are three types of stock broking service.

      Execution-only, which means that the broker will only carry out the client’s instructions to buy or sell.

      Advisory dealing, where the broker advises the client on which shares to buy and sell, but leaves the final decision to the investor.

      Discretionary dealing, where the stockbroker ascertains the client’s investment objectives and then makes all dealing decisions on the client’s behalf.

      Link Account: HABSL give the facilities of link account. Investors who have account in different house can invest in HABSL through link account without closing account in there respective Account.

      HABSL has an agreement with AB Bank. Investor who wants to invest huge amount of money they can lend from AB Bank through HABSL.

In addition to actually trading stocks for their clients, stock brokers may also offer advice to their clients on which stocks, mutual funds, etc. to buy.

5.0 CDBL

Central Depository Bangladesh Limited (CDBL) department is the important department of HABSL. This department is linked with CDBL established in Kawran Bazar. CDBL operate and maintain the Central Depository System (CDS) of Electronic Book Entry, recording and maintaining securities accounts and registering transfer of securities; changing the ownership without any physical movement or endorsement of certificates and execution of transfer instruments, as well as various other investor services including providing a platform for the secondary market trading of Treasury Bills and Government Bonds issued by the Bangladesh Bank. CDBL department does all this activities for its client through CDBL. CDBL department gives various services to its customers are given below.

5.1 Account Opening

Investors can open a B/O account through CDBL department of HABSL. The CDBL will request the investor to sign an agreement which will set out the rights and duties of both the investor and the HABSL. The CDBL department of HABSL will then open an account for the investor at CDBL. An investor can open maximum two accounts one is single and another is joint. Non Residence Bangladesh (NRB) can open account by full feeling another two forms named power of attorney and nomination form. All these forms are given below.

5.2 Dematerialization

Dematerialization is a process by which physical certificates are converted into electronic form. Once a security is eligible for holding in CDBL then all stock exchange trades must be settled through the depository. This means that sellers must have securities in the depository before execute the sale order.

To dematerialize securities investors should take their share certificates to our CDBL department. CDBL department will request the investor to complete a dematerialization request form. CDBL department will take the documents to the issuer who (if the certificate is valid) will update the register by moving the securities from the certificated portion of the register to the depository portion. The issuer will then confirm the dematerialization to the depository and the depository will credit the securities to the investor’s account.

The participant will be able to see the balances in all the accounts that they control through a computer link with CDBL.

Investors do not need to wait until they wish to sell to dematerialize their holdings. Once a security is eligible, investors may open accounts and lodge securities at any time.

5.3 Rematerialization

To rematerialize securities that are in a CDBL account the account holder must instruct the CDBL department of HABSL through which he holds his account by completing a rematerialisation request form.

The CDBL department will instruct CDBL and the securities will then be debited from the account upon confirmation by the issuer.

The issuer will transfer the holding from the depository portion of its register to the certificated portion of its register.

The issuer will provide the investor with a share certificate within 30 days of rematerialisation.

5.4 Buying & Selling

Where investors have a CDBL account through HABSL then the act of giving a sell order to the HABSL also authorizes him to move securities from the account to settle the sale. The CDBL department of HABSL will move the securities when he enters the order into the market. If the order is executed then the securities are used to settle the sale. If the order is not executed then the CDBL department of HABSL will move the securities back to the investor’s account.

On the settlement date of a bought trade the CDBL department of HABSL will move securities to the account of the buying investor (provided the investor has paid). Investors may leave the securities in their account or they may request the CDBL department of HABSL to rematerialize the securities.

5.5 Off Market Settlement

An Account Holder who wishes to transfer Securities through the mechanism of a matched transaction shall give a completed Off Market Transfer Request Form 15 to CDBL department.

An Account Holder may use this mechanism where: payment for a transaction is due to take place outside of the Stock Exchange; or for any other reason at the discretion of the Account Holder and with the agreement of both Participants.

An investor who wishes to transfer Securities through the mechanism of a matched transaction shall give a completed Off Market Transfer Request Form.

On receipt of an Off Market Transfer Request Form 15 for either receipt or delivery of Securities, the CDBL department of HABSL shall enter the Transaction into the CDBL system in accordance with the User Manual.

5.6 Freeze and Suspension

Every Account Holder shall have an option to freeze or suspend his/her Account with the CDBL. The CDBL department shall then suspend the Account of an Account Holder maintained with it on written instructions received by the CDBL department from the Account Holder.

Alternately the Account Holder may wish to permanently close of their account, in which case they must fill in an Account Closure Request Form.

An Account Holder shall have an option to suspend the Account either for debit or credit or both.

The CDBL department shall suspend the Account of an Account Holder on written instructions received by it in this regard from CDBL pursuant to the orders of the Commission, or any order passed by a court in this regard.

CDBL shall direct a CDBL department to suspend an Account opened by the CDBL department with itself or suspend an account itself in respect of Securities held by the CDBL department in its own name: on the orders of the Commission or any court in this regard; and if the CDBL department becomes insolvent, bankrupt or in case of a body corporate being wound up.

An Account Holder may suspend his Account by making an application to his CDBL department on the Account Suspension Request Form.

5.7 Transfer & Transmission

Transfer means moving Securities from one Account to another within a single CDBL department of HABSL or to another CDBL Participant. An account holder must fill in a Transfer Request Form to transfer their securities, and then submit the form to their CDBL Participant.

Transmission means the Transfer of all Account Balances of an Account Holder to another Account. In order for the Account Holder to perform a Transmission, they must first fill in a Transmission Request Form and then submit it to their CDBL Participant.

5.8 Pledging

Account Holders may use the shares in their depository accounts as collateral against a loan without the need to rematerialize the securities. The pledgee must be a depository account holder. The Pledgor gives instructions to his participant to pledge his shares to the pledgee. The Pledgee must confirm acceptance of the pledge. The shares are then ‘frozen’ in the account of the pledgor and cannot be moved until instructions are received from the pledgee. The instruction from the pledgee may be to ‘release’ the pledge or to move the shares to his own account. As the shares remain in the account of the pledgor, the pledgor will receive all benefits  and will still be able to vote.

Chapter: 6

6.0 Problems identify: As an intern I am working on CDBL department of HABSL. My report topic is “Improving operations of CDBL department of HABSL”. Being a part of CDBL department of HABSL for ten weeks I found out some problems and I will try to find out some solution to solve those problems. This will help to increase the efficiency of CDBL department of HABSL.

6.1 CDBL department has to serve customer service: CDBL department is the busiest and important department for every brokerage house. They are linked with CDBL established in Kawran bazar. CDBL department has to be updated every time. Brokerage houses must have to give penalty for short mistake. On the other hand brokerage house is one kind of customer care services. Broker houses work for their customer. Customer care service is also an important activity. In HABSL, employee of CDBL department has to provide customer care services. This create huge problem because HABSL has almost twenty seven thousands clients. It is very hard to give customer care services in trading time and complete CDBL task at the same time.

Customer care and CDBL of HABSL has to perform some routine tasks for customers. There are given below.

6.1.1 Routine tasks of customer care services:

      People want to open a B/O account in HABSL customer care manager serve B/O account opening form and give necessary information what should bring with B/O form.

      Customer care manager receive opening charge in time of receiving B/O opening from.

      Customer care manager check B/O forms in time of receiving whether every document is attached or not.

        Give necessary information to its existing clients. Such as if there is any new share in the market, DSE impose new rule, or CDBL impose new rule in account opening.

      Investor must have a portfolio print if the want to sell there share so customer care manager print there portfolio.

      Customer care manager give Ledger print to its clients, this print contain overall information of buying and selling of a trader.

      Customer care manager give portfolio print of specific date for tax payer client.

      Customer care manager inform existing customer how much charge must give or there any document should give to remain open there accounts.

       Customer care manager check B/O forms to ensure every form is full filled according to the rule and every document is attached in a Wright way.

      Customer care manager found any problem in B/O form then he phoned to client to submit required documents.

      Customer care manager receives documents from clients.

      Customer care manager receives annual charge.

6.1.2 Routine tasks of CDBL department:

      CDBL department has to give CDBL print of clients, this will show the actual information of a client such as how many share he has and which company’s share ha has. Life time information of client code.

       CDBL department has to data entry of new B/O accounts. New companies are entering in to the share market so people are attracted to open new B/O accounts. Day by day data entry of B/O account is increasing.

      Settlement: This is the most important task of CDBL department. This task must have to complete within 5.00 P.M. after 5.00 P.M CDBL off online so it is not possible the settlement. Settlement contains:

      Pay in: when a client sells a share then it is called pay in. this share come to the code of HABSL and send it to CDBL.

      Pay out: when a client buys a share then it is called pay out. This share has to send to the CDBL send this share to our DP account and send it to customer account.

      Settlement: Settlement matches the pay in and pays out. CDBL department of HABSL send the each and every share sold from there code and CDBL send each and every share to CDBL department of HABSL which are bought by HABSL LTD’s code.

 CDBL department has to maintain clearing account. Clearing account   is the DP address listed in CDBL. Through which CDBL department of HABSL maintain account.

CDBL department scene signature of clients and upload to online and send to CDBL.

CDBL department close the those accounts who have no share in there accounts and don’t give there annual fees in time.

6.1.3 Problems: It is very difficult for two people to give such a huge customer services and CDBL activities. It creates lots of problems. Problems are:

      Client has to wait for long time for there CDBL print.

      Client has to wait for paying charge.

      Client has to wait to have information.

       Employee can’t check B/O form properly.

      These problems increase another problem of phoning to the client.

      Employee stay in huge pressure because of work load in trading time.

      Employee can’t perform at there label best.

      Employee has the chances of making mistake in settlement which cost high.

      Employee has the chances of making mistake in receiving money.

      Employee delay in data entry of B/O opening form, client has to wait for long time.

      Employee delay in data entry of demate form, client has to wait for long time.

6.2 Problems in Hardware and software: Brokerage houses use two soft wares. Versatile Engine for Depository Accounting System for CDBL and POWER BROKER for customer services. All these software are made by Indian company. These software are extremely slow. Can’t work properly and hanged frequently. Configuration PC of HABSL is very bad so those can’t serve the huge customer demand of HABSL and printers of HABSL is low in quality so it does not print on demand.

VeDAS (Versatile Depository Accounting System) developed by CMC Ltd. India for CDBL (Central Depository Bangladesh Ltd.) provides a facility, which enables securities transactions to be processed by the way of book entry. It facilitates holding of securities in an electronic form.

VeDAS helps in reducing the infrastructure requirements required for vaults and physical verification of securities by providing various services like Beneficial Owner’s account opening, Dematerialization, Rematerialization, settlement of trades (on market and off market) and also advanced features like pledging, unpledging and confiscation of securities, calculation and distribution of cash and non-cash benefits arising out of corporate announcements distribution of securities to Beneficial Owner’s for new issues coming in the Dematerialized environment, transfer and transmission of securities and lending and borrowing of securities to its participants.

Back Office Management System is being developed for the Broker Houses of the Stock Exchange of Bangladesh. This software is developed by Bangladeshi person using Indian technology.

Back Office Management software helps to get all information such as client’s information, trader’s information, stock inventory, general ledger, portfolio, market analysis and information about CDBL.

This is big software. To run this software, need a high configuration PC set up.

In CDBL department, there are four PC and two printers. The configurations of this hardware are:

      Pentium 3

      CPU 1.2 GHz

      256 RAM

All the hardwares are one years or more then one year older. It can’t give its best performance.

CDBL department use The Epson LX-300+II 9 pin dot matrix printer and HP ledger printer. They are working bit slowly. They consume time and create problems.

Back Office Management and Versatile Depository Accounting System are needed to operate CDBL and customer care services with this hard ware are tough. CDBL department has to face some problems.

6.2.1 Problems

It takes long time to open software; it kills important time of employee and clients.

Employees loose their productivity so they can’t finish there job timely which increase workload.

 In time of trade customers want hurry for there prints because other wise they may miss some opportunity. Unfortunately they have to wait for long time and don’t get print timely.

This kind of service may create bad image to the clients and reduce number of clients.

  Slow rate of services keeps the CDBL deportment crowdie. Employee can’t serve properly.

CDBL department has to perform very important task like settlement, if they feel problems like this. It is very difficult perform this task.

Clients charge the employee to do there work fast but employee can’t do it for slow system. Then the conflicts begin with client and employee.

Employee loose there job satisfaction and can’t serve well to the clients.

 It increases conflict between colleague and top management.

 It herms motivational level of employee and loose productivity.

6.3  Semi skilled employees and lack of human resource: Employee of CDBL department of HABSL is not skilled. They are semi-skilled. They can operate the system but can’t solve problems. An organization is based on technology; if employees can’t solve this problem this will create problems. There are three people in CDBL department of HABSL. This two people have to serve customers and all activities of CDBL department. This is very hard for the employee. Activities are not well organized. Employees are not motivated.

One has to complete degree to qualify for the position of CDBL department of HABSL. They prefer who have some IT knowledge. After recruiting employee HABSL arrange a training season how to work in CDBL department. Employees know how to operate software but don’t know how to solve a problem if any problems occur.

They use outsourcing to solve there problems.  If any problem occur then they call expert to solve there problems. This may be quit time consuming and create problem on day to day activities.

Two employees are the full time employee of CDBL department to serve CDBL and customer care services. Another employee helps them if there work load increase. HABSL has twenty eight thousand clients. In time of trade it is impossible for two employees to serve a huge amount of clients.  So HABSL has to face some problems.

6.3.1 Problems

      Employees are less productive. Outcome from employees bit low because of semi skilled.

      Employees can’t solve problems efficiently. They don’t know how to solve the problems.

      Employees frequently face problems because of problems in software or hardware.

       When employees face problem then have to stop there work. They will wait for expert who will solve the problem and work will start.

      In trading time CDBL and customer care have to be in huge pressure. Huge amount of client come to trade. It delayed the activities of CDBL.

      Less human recourse fails to serve a huge amount of clients.

Chapter: 7

Solve the problem: To solve these problems I will suggest

7.1  Make an independent for customer care services: To decrease the work load of CDBL department. HABSL should organize another department for customer care. Client will get necessary information when they needed. Client also get there portfolio, ledger or CDBL print as quick as possible. As result CDBL department can do there settlement and clearing accounts timely. CDBL department will be more efficient.

To organize a new department I will suggest some area. I have given the map of trade department and CDBL department. In this whole office I found few free areas to organize another department. I have shown this following map.

Trade department is upper side in the map. Trade department operates with five computers. Main gate of HABSL is in the upper right side. Between main gate and trade department there is free area of about ten foot. CDBL department is in below the map1. It operates with four computers.

Figure: 17, Map of CDBL and Trade department of HABSLtrade depermant

Figure: 18, new area to establish Customer care services


To organize a new department I will suggest using this area shown in the Figure: 18, will bring the number four PC of CDBL department and set in this area to serve for Customer care. Because this area is beside the main gate so investor can easily get information and required print.

I will suggest another idea for better customer services. There are lots of investors who come to HABSL not to trade. They want information about there accounts. They come to HABSL to know how many share they have and which one. Only for this information they ask print of there accounts. It increases costs. To reduce this cost we can set another PC beside the trading department. This will be self service. People will check there account and other information from without interrupting employees. In table 3 I have shown the where we should set this PC.

I think through this way we can solve the problem of CDBL and customer care services.

7.1 Suggest CDBL to improve there software and HABSL’S hardware facilities: All brokerage houses use same software. HABSL initiate to report to CDBL to improve there software those will perform well and quicker. HABSL must change there hardware like PC, printer. There PCs are too old to serve the huge demand of customer. HABSL must bring some high quality printer and PC so that there CDBL department becomes efficient.

To solve the problems caused by hardware and software we have to improve our hardware capacity because it is not possible to change the software. Software are fixed by CDBL so we have to improve our hard ware capacity to solve the problems. We can run big software easily and print our desired copy as soon as possible.

      For high speed services following PC configuration you can follow.

Intel® Core™2 Duo processor E4600

(2 MB L2 Cache, 2.2 GHz,800 MHz)

31PR Mother Board

1GB DDR2 RAM , 160 GB Sata

17″ LCD Monitor , ATX Board

Optical Mouse, Multimedia Keyboard, DVD Writer.

      For high speed print you can use

HP Color LaserJet CP4005 Printer series

Black (best): Up to 30 ppm

Color (best): Up to 25 ppm

      Resolution: Up to 600 x 600 dpi

      Monthly duty cycle: Up to 80000 pages

Recommended monthly print volume: 2000 to 7500 pages

      Paper trays: 3

      Paper input capacity: Up to 1100 sheets

      For moderate service you can choose this printer.

HP Color LaserJet CP3520 Printer Series

      Black (best): Up to 30 ppm

      Color (best): Up to 30 ppm

      Resolution: Up to 1200 x 600 dpi

      Monthly duty cycle: Up to 75,000 pages

      Recommended monthly print volume: 1500 to 5000 pages

      Paper trays: 3

      Paper input capacity: Up to 850 sheets

7.2 Bring some full time expert improve management skills: HABSL should bring one or two expert in there CDBL department so that they can easily face any problem and extra employee will lower the work load of existing employee. CDBL department has to more organize to bring a positive output.

To solve those problems there is no alternative to have an expert. CDBL department has to operate there work through a software. If there is any problem employee must have the capacity to solve the problems.

To make the employee skilled HABSL should organize training program so that employee become skilled. HABSL should organize monthly training program. Training will increase there productivity.

I think employee should need to improve there work efficiency. Batter outcome is possible if employees work efficiency increase. To improve HABSL employee’s work efficiency I will suggest.

            Your payment system is the first step in rewarding employee efficiency (or inefficiency). If you pay a salary without any other kind of incentive, you’re inviting the possibility that the employee will only do the minimum amount required. After all, there is no reward for doing more.

            Consider a reward for efficiency or an incentive to complete more. For example, if your employees can complete a week’s worth of assigned work in just 4 days, they don’t have to come in on Friday. Another additional incentive might be to tie a commission-based wage to the profitability of the company, giving them a sense of ownership.

Beyond wages and motivational rewards, there are other ways to improve efficiency in your office. Here are some ideas:

            Make it a fun place. This will keep people’s attitudes positive and they’ll want to come to work.

            Be flexible with shifts. If possible, don’t have everyone come in from 9-5 (or whatever your hours are). Offer employees other options, including flextime, split shifts, or even work-at-home arrangements. These options often end up saving you money!

            Learn what your employees need on a regular basis and make it available to them. If many employees head down to the building’s cafeteria for a soft drink, why not put a vending machine right in your office? If employees leave their desk to use the office stapler, put a stapler on their desk.

            Use time tracking, collaboration, and project management software to keep everyone “on task” and aware of what they’re doing and what they’ll need to do next.

            Make people aware of the system and how they fit into it. Often, people under-perform when they don’t realize that others are relying on them. If they understand that they fit into a system like a gear in a clock, they’ll contribute more for the sake of the team.

            Use a flowchart to track the workflow in your office. Are people touching papers or packages more than once? Is a document going through unnecessary steps? If it’s been a while since you reviewed your workflow, does it now because workflow can change and become inefficient quickly, even if you initially set it up to be very efficient.

HABSL has to give customer care services. Sometimes there is a conflict between clients and employee. Employees loose there job satisfaction. When they loose there job satisfaction then employees loose productivity. This is harmful for the company. So organization has to organize motivational program to increase productivity.

The following are examples of true motivators that will help your employees tap into their natural ability to be motivated. Remember; implement these true motivators without spending money. Instead of focusing on money, focus on how you can make some changes within your organization.

      If your employees do routine work add some fun and variety to their routine.

      Provide employees with input and choice in how they do their work.

      Encourage responsibility and leadership opportunities within your company.

      Promote social interaction and teamwork between employees.

      Tolerate learning errors by avoiding harsh criticism.

      Promote job ownership.

      Develop goals and challenges for all employees.

      Provide lots of encouragement.

      Make appreciation part of your repertoire.

      Develop measurement that shows performance increase.