Securities and Exchange Commission Bangladesh

CHAIRMAN’S STATEMENT

The Securities and Exchange Commission (SEC) was established on June 8, 1993 under the Securities and Exchange Commission Act 1993 (Act 15 of 1993) as a capital market regulator with a view to ensuring proper issuance of securities, protection of the interest of investors in securities, development of the capital and securities markets, and regulation of the capital and securities markets in Bangladesh.

The Commission consists of a chairman and four full time members who are employed by the government for a period of three years renewable for another similar term. The services of the chairman and members of the Commission are also determined by the government. The Chairman is the chief executive officer of the Commission.

The country’s capital market witnessed a remarkable turn-around during the fiscal year 2008-2009. There were unmistakable signs of the resurgence of investor’s confidence which suffered a major jolt in the wake of the catastrophic crash of the stock market in 1996. Dhaka Stock Exchange’s (DSE) general index which was introduced on 27^th November 2001 with a base of 818 points hardly moved in the following two years with the index increasing by merely five points to reach 823 on 30^th June 2003. A significantly higher level was attained during the following year with the index rising to 1319 as of 30 June 2004. Parallely, Chittagong Stock Exchange’s index rose from 1841 as of 30^th June 2003 to 2329 as of 30^th June 2004. The momentum of growth persisted through the subsequent months. Market capitalization at DSE increased from Taka 69 billion on of 30^th June 2003 to Taka 142 billion as of 30^th June 2004.

The above developments in the capital market were fostered by several macroeconomic measures. The budget for 2008-2009 provided that a rebate of 10 percent of the income tax would be allowed if a listed company declared 20 per cent dividend; no questions were to be asked by the tax authority as to source of income if investment was made in the shares of listed companies; and there was a corporate tax differential amounting to 7.5 percent between listed companies declaring at least 10 percent dividend and others. Dividend income was made tax-free in the hands of the recipient. The Government and the Bangladesh Bank took steps to reduce interest rates on the saving instruments and bank deposits.

The macroeconomic measures were complemented by a number of initiatives implemented by the Securities and Exchange Commission (SEC). These were primarily aimed at ensuring smooth and orderly functioning of the capital market. A brief outlines of these initiatives is presented below:

SEC intensified dialogue with various market actors – issuers, members of the stock exchange, merchant bankers, auditors etc. A consultative Committee was set up consisting of SEC officials and the Chief Executive Officers of DSE and CSE to discuss market-related developments and propose appropriate corrective actions.

Monitoring role of SEC was strengthened to ensure that the market actors fulfill their duties and obligations. A system of regular inspection of brokerage houses was put in place. The submission of half-yearly and annual accounts and holding of annual general meetings were closely monitored. Surveillance over the prices and trading volumes of individual scrip was strengthened. These led to a number of enforcement actions, including suspension of trading in shares of 16 companies.

Central Depository Bangladesh Limited (CDBL) has started commercial operation upon receipt of business commencement certificate from the Securities and Exchange Commission on December 23, 2003. Now on, the issuance of primary shares through public offering has to be made through CDBL in dematerialized form that would enhance the transparency and bring dynamism in the capital market. The dematerialization of securities listed on the stock exchanges began on December 24, 2004, and 15 companies were brought within the fold of central depository system by 30^th June 2004. These companies account for 22.02 % of market capitalization. The remaining securities listed on the exchanges would be dematerialized in phases. Apart from the above, CSE has introduced internet trading system with effect from 30^th May 2004.

The Commission accorded registration to Credit Rating Agency of Bangladesh Ltd (CRAB) on February 24, 2004 that increased the number of registered credit rating company into two. With the operation of new credit rating agency, it is expected that competition would result in improvement of quality as regards credit rating. In Bangladesh, rating is mandatory for issuance of debt instruments through public offering, issuance of rights shares and issuance of shares at premium.

The Securities and Exchange Commission introduced a new system for IPO distribution to attract small investors towards capital market. In this respect, all the applicants shall be treated as applied for a single lot of securities. If there is over subscription, then lottery shall be held amongst the applicants allocating one identification number for each application, irrespective of the application money. On the other hand, if there is under subscription, then all the applicants shall first be distributed with a single lot and thereafter, for the balance amount, lottery shall be held for the applicants who have applied for multiple lots on the basis of dividing the application money by the amount of a market lot separately.

The Securities and Exchange Commission has withdrawn the weighted average index from Dhaka and Chittagong Stock Exchanges for its failure to reflect the fluctuation of price of securities traded on the stock exchanges.

To ensure total enforcement of the Anti Money Laundering Law in the country, the Securities and Exchange Commission has issued a notification restricting cash transaction over Tk. five laces for purchase or sale of listed company’s shares. In this regard, an investor will have to transact through the banking channel by account payee checks, bank payment order or draft or any other mode of transaction available with the banking system. Beside this, the Securities and Exchange Commission (SEC) is in the process of finalizing guidelines for election/ appointment of directors and their qualifications with a view to improving corporate governance.

The revival of investors’ confidence amply demonstrated by the sustained upward trend in the stock market indices, market capitalization and the volume as well as value and volume of daily turnover needs to be nurtured. In this context, one can not overemphasize the importance of augmenting the supply of quality scrip’s. Here the response was at best lukewarm. During the fiscal year under review, SEC could approve only five issues of initial public offering. The total value of issues amounted to Tk. 151.69 crore.

The country’s capital market is predominantly equity- centric. Of the total 267 securities traded on the stock exchanges, 248 are equities, 11 mutual funds and eight are debentures. In order to widen the choices available to investors with respect to returns, liquidity and risks, it is crucially important to diversify the instruments available for investment. With this end in view efforts were initiated to introduce asset-backed securities and make long-term government bonds tradable on the stock exchanges. These efforts are expected to be successful within the next few months.

To conclude, the capital market of Bangladesh is now poised to play its due role as a conduit for financing investment and thereby making a notable contribution to economic growth, employment creation and poverty alleviation. The progress achieved so far would not have been possible without the active cooperation and support of many parties- the Government, Bangladesh Bank, issuers and market intermediaries. I wish to express my gratitude to all of them. I also acknowledge with thanks the high level of commitment and dedication shown by all my colleagues in the Commission in our joint bid to revitalize the capital market.

Dr. A B Mirza Azizul Islam

Chairman

Bangladesh Capital Market

The Commission:

The Commission consists of a chairman and four full time members who are employed by the government for a period of three years renewable for another similar term. The service of the Chairman and members of the Commission are also determined by the government. The Chairman is the chief executive officer of the Commission.

The Dhaka Stock Exchange (DSE):

As on 30^th June, 2004 there were 267 securities listed with DSE against which total issued capital was Tk.48, 940 million and total market capitalization was Tk.1,42,370 million.

The Dhaka Stock Exchange is a self-regulated non-profit organization. It has a 24 members Council of which 12 are elected from the exchange members and 12 are nominated from the non-exchange members by the elected exchange member-councilors, subject to the approval of SEC.

The executive power of DSE is vested in the chief executive officer (CEO) and under the leadership of CEO the executive body conducts the daily affairs of DSE. The board of directors of DSE appoints the CEO with the approval of SEC.

The Chittagong Stock Exchange (CSE):

As on 30^th June, 2004 there were 195 securities listed with CSE against which total issued capital was 44,360 million and total market capitalization was Tk.1,25,910 million.

The Chittagong Stock Exchange is also a self-regulated non-profit organization and formation of the board of directors, size and the rules of election of directors are also similar to DSE. The executive power of CSE is also vested in the CEO, and the executive body conducts the daily affairs of the exchange. The CEO is appointed by the Board with the approval of the Commission.

Bond Market:

The country’s capital market is predominantly equity-centric. Of the total 267 scrips traded on the Dhaka Stock Exchange only eight are debentures issued by the corporate houses. The total outstanding amount against the aforesaid debentures was Tk.230.00 million only as on June 30, 2004. Under Financial Institution Development Project an expatriate firm has also been engaged to suggest a draft of comprehensive rules for issuance, trading, payment and settlement of government, municipal and corporate fixed income securities in Bangladesh. Apart from the above, a few financial institutions, with the regulatory support of Bangladesh Bank and SEC, have taken initiatives for their asset securitization. It is hoped that aforesaid instruments would provide the investors alternative investment options in near future.

Raising of capital through Initial Public Offering (IPO):

During 2008-2009 fiscal year 10 companies raised Tk.2400 million capital through initial public offering to the general public. Out of the aforesaid 10 companies, five obtained consent from the Commission to raise capital in the fag end of FY. 2002-2003 but subscribed by the general public during 2008-2009. The five companies that received consent from the Commission and subscribed by the general public within FY. 2008-2009 raised Tk. 1520 million by way of Tk.730 million from the general public, Tk.60 million from foreign placement and Tk.730 million from local placement.

Listed Companies:

To increase awareness of the investors in the capital market, the listed companies have been categorized as A, B, Z and G based on profit-loss, status of annual general meeting (AGM) and commercial operational status of the companies. ‘A’ category companies are those which pay 10% or more dividend, ‘B’ category companies are those which pay less than 10% dividend and ‘Z’ category companies are which that fail to pay any dividend, hold AGM, and whose accumulated loss exceeded the issued capital or companies which are not in operation for more than six months.

As at 30^th June 2004 there were 123 ‘A’ category companies (47.49% of total listed companies), 39 ‘B’ category companies (15.06% of total listed companies), 96 ‘Z’ category companies (37.06 % of total listed companies) and only one ‘G’ category company.

Depository System Started Functioning in the Capital Market:

Central Depository Bangladesh Limited (CDBL) has started its commercial operation upon receipt of business commencement certificate from the Securities and Exchange Commission on December 23, 2003. Now on the issuance of primary shares through public offering has to be made through CDBL in dematerialized form that would enhance the transparency and would bring dynamism in the capital market. The dematerialization of securities listed on the stock exchanges began on December 24, 2004, and 15 companies were brought within the fold of central depository system by 30^th June 2004. These companies account for 22.02 % of market capitalization. The remaining securities listed on the exchanges would be dematerialized in phases.

Merchant Bank:

As on 30 June 2004, there were 29 companies that obtained registration certificate from the Commission to work as merchant banker and portfolio manager. Most of them are full-fledged merchant bankers (Issue manager, Underwriter and Portfolio manager). The break-up of the aforesaid 29 companies are given below:

(a) Full fledged merchant banker – 22

(b) Issue manager – 6

The performance of most of the aforesaid companies is not satisfactory. One of the merchant bankers named Saudi- Bangladesh Industrial and Agricultural Investment Company Ltd with the consent of the Commission has stopped operation of its merchant banking wing for the time being.

Mutual Fund and Asset Management:

As per the Securities and Exchange Commission (Mutual Fund) Rules, 2001 the Commission accords registration to mutual funds. As on June 30, 2004, only ten mutual funds including one managed by AIMS of Bangladesh Ltd, a private sector asset management company, were listed on the stock exchanges. Govt. owned Investment Corporation of Bangladesh issued eight and Bangladesh Shilpa Rin Shangstha (BSRS) issued the remaining one mutual fund. ICB Asset Management Company is going to issue another two mutual funds named “ICAB AMCL Islami Mutual Fund” and “Pension Holders Unit Fund” in the market. In the meantime, the Commission has accorded registration to “ICB AMCL Islami Mutual Fund” and also approved the draft of trust deed of “ICB AMCL Pension Holders Unit Fund” during this financial year. As institutional investor more mutual funds would play a significant role in the capital market.

Credit Rating Agency of Bangladesh Limited:

New system introduced for IPO distribution:

The Securities and Exchange Commission introduced a new system for IPO distribution to attract small investors towards capital market. In this respect, all the applicants shall be treated as applied for one minimum lot. If there is over subscription, then lottery shall be held amongst the applicants allocating one identification number for each application, irrespective of the application money. On the other hand, if there is under subscription, then all the applicants shall first be distributed with a single lot and thereafter, for the balance amount, lottery shall be held for the applicants who have applied for multiple lots on the basis of dividing the application money by the amount of a market lot separately.

SEC-ADB Workshop on Corporate Governance:

A two-day long national workshop on ‘Corporate Governance in Bangladesh’, jointly arranged by the Securities and Exchange Commission and the Asian Development Bank was held at the Sonargaon Hotel, Dhaka on July 9 to 10, 2003. Another workshop was also jointly organized by the Securities and Exchange Commission and Asian Development Bank at CIRDAP auditorium, Dhaka on 24 May 2004. SEC Chairman Dr. A B Mirza Azizul Islam inaugurated the workshop. Local and expatriate consultants and Commission officials highlighted the various aspects of corporate governance. They also dwelt on aspects that were needed to be implemented to improve the governance scenario in Bangladesh.

SEC Formed a Consultative Committee:

The Securities and Exchange Commission has formed a three member consultative committee consisting of the senior most executive director of the Commission and CEOs of stock exchanges to discuss the market related issues and recommend appropriate measure for the Commission’s consideration.

Weighted Average Index withdrawn:

The Securities and Exchange Commission has withdrawn the weighted average index from Dhaka and Chittagong stock exchanges for its failure to reflect fluctuation of price of securities traded on the stock exchanges.

SEC suspended trading of 16 companies:

The Securities and Exchange Commission suspended trading of 16 companies for their abnormal price hike despite the fact that their fundaments were very poor and many of them were not in commercial operation. In the meantime, some of these companies were de-listed from the stock exchanges. However, to facilitate the trading of the de-listed securities direction has been given by the Commission to CSE to allow transactions of these securities on O-T-C market.

SEC Consent Mandatory for Pre-IPO Placement:

The Securities and Exchange Commission has taken measures to ensure compliance of the securities laws for raising capital through pre-IPO placement by issuer companies.

SEC Imposed Limitation on Cash Transaction in the Stock Market Deals:

To ensure compliance with the Anti Money Laundering Law in the country, the Securities and Exchange Commission has issued a notification restricting cash transaction over Tk. five lacs for purchase or sale of listed companies’ shares. Transaction of securities exceeding the aforesaid cash limit has to be made through the banking channel by account payee checks, bank payment order or draft or any other mode of transaction available with the banking system.

Guidelines for Election/ Appointment of Directors:

The Securities and Exchange Commission (SEC) is in the process of finalizing guidelines for election/ appointment of directors and their qualifications with a view to improving corporate governance.

CAPITAL MARKET TREND

CAPITAL MARKET SUMMARY

As on 30^th June, 2004

Indicators (Listed)

Dhaka Stock Exchange

Chittagong Stock Exchange

No. of companies (Share)	248	182
No. of mutual funds	11	11
No. of debentures	8	2
Total No. of Listed Securities	267	195

Figures in million

No. of shares of all listed companies	1113.40	988.8
No. of certificates of all listed mutual funds	73.20	73.2
No. of debentures of all listed debentures	0.40	0.05
Total No. of Tradable Securities	1187.00	1062.05

Figures in million

Issued capital of all companies (Equity) Tk. US$	48323.00	43892.30
Issued capital of all mutual funds Tk. US$	395.00	395.00
Issued debentures Tk. US$	227.00	73.8
Total Issued Capital Tk. US$	48945.00	44361.10
Total Market Capitalization Tk. US$	142369.00	125911.30

General Share Price Index

1318.92

(A and B category)

2329.46

(All Share Price Index)

INITIAL PUBLIC OFFERING (IPO)

List of companies/mutual funds that raised capital through Initial Public Offering (IPO) during July 2002 to June 2003:

Figures in million Taka

Sl. No	Name of the Company	Total Capital	Sponsors Equity			Public Equity				Remarks (Issued at premium)	Subscribed amount (Ref Col No.7)	Date of Subscription Opens: Closes:
			Local	Foreign	Total	General Public	Foreign placement	Local placement	Total (7+8+9)
1	2	3	4	5	6	7	8	9	10	11	12	13
1	Daffodils Computers Ltd.	175.00	100.00	–	100.00	45.00	–	30.00	75.00	At par	31..2	07/10/03 13/10/03
2	JMI-Bangladesh Ltd.	110.00	25.8	34.24	60.00	30.00	–	20.00	50.00	At par	59.7	02/11/03 06/11/03
3	Lafarz Surma Cement Ltd.	5806.90	335.10	4577.90	4913.00	150.00	64.8	679.10	893.90	At par	388.654	10/11/03 15/11/03
4	Exim Bank Ltd.	721.90	313.90	–	313.90	408.00	–	–	408.00	30% premium	5012.20	24/07/04 28/07/04
5	Marcantile Insurance Company Ltd.	150.00	60.00	–	60.00	90.00	–	–	90.00	At par	656.085	28/08/04 01/09/04
Total		6963.70	834.70	4612.10	5446.80	723.00	64.8	729.10	1516..90	–	6147..839

CORPORATE FINANCE

In the FY 2008-2009, the Commission accorded consent to 13 public limited companies to raise capital for Tk.2220 million through pre-IPO private placements, bonus shares and debt issues.

COMPARATIVE STATEMENT ON DIVIDEND DECLARATION

Criteria	FY 2002-2003	FY 2008-2009
No. of Companies declared dividend	149	155
Range of dividend (%)	2-150	2 – 200
No. of Companies did not declare dividend	35	55

AGM DEFAULTER COMPANIES

Number of year(s) failed to hold AGM	Number of Companies
1	20
2	10
3	6
4	1
5	1
6	2
7	1
Total	41(15% of total listed companies)

Rights Issue:

During the financial year 2008-2009 no issuer applied to the Commission for rights issues:

REGISTRATION

Issuance of Stock Broker Registration Certificate:

During the period the Commission stock broker registration certificate to the following members of Dhaka and Chittagong Stock Exchange Ltd under the Securities and Exchange Commission (Stock Dealer, Stock Broker and Authorized Representatives) Rules, 2000.

Sl. No.		Name of the Stock Broker	Name of the Stock Exchange & Membership #		Address	Registration Certificate Number and Date
1		Pasha Capital Ltd.	Dhaka Stock Exchange Ltd. DSE-12		13/5, Outer Circular Road, Dhaka-1217	Registration-3.1/DSE-12/2004/78 Dated: 03/03/2004
2		Samin Securities Ltd.	Dhaka Stock Exchange Ltd DSE-83		Room No. 721, DSE Building (7^th floor), 9/F, Motijheel C/A, Dhaka-1000	Registration-3.1/DSE-83/2004/79 Dated: 09/03/2004
3		Doulotunnesa Equities Ltd.	Dhaka Stock Exchange Ltd DSE-37		House No. 49, Road No. 9/A, Dhanmondi R/A, Dhaka-1209	Registration-3.1/DSE-37/2004/80 Dated: 23/03/2004
4		Chittagong Shares & Securities Ltd.	Chittagong Stock Exchange Ltd. CSE-060		8, Master Mansion (1^st floor), 4, Terry Bazar, Chittagong	Registration- 3.2/CSE-060/123/2004 Dated: 04/03/2004
5		Hassan Shares & Securities Ltd.	Chittagong Stock Exchange Ltd. CSE-114		Shelly Cottage (2^rd floor), House No. 10, Block-L, Koybailladham R/A, Khulshi, Chittagong-4207	Registration- 3.2/CSE-114/124/2004 Dated: 13/03/2004
6.		Federal Securities and Investment Ltd.	Dhaka Stock Exchange Ltd DSE -45		56, Purana Palton (3^rd Floor), Dhaka-1000	27/12/2003
7.	Banco Securities Ltd. DSE#63			Dhaka Stock Exchange Ltd DSE -63	13-14, Motijheel Commercial Area, Ispahani Building (3^rd Floor), Dhaka-1000	Registration-3.1/DSE-63/ 2004/81 Dated: 29/04/2004

Issuance of Depository Participants’ Registration Certificate:

During the period, the Commission approved the following depository participants’ registration certificate as per Depository (User) Regulation, 2003:

Sl. No.	Name of the Depository Participant	Address	Classification of Depository
1	Standard Chartered Bank	2, Dilkusha Commercial Area, Dhaka	Custody Participant
2	Mona Financial Consultancy and Securities Ltd.	Room No. 317, 413 & 417, DSE Building, 9/F, Motijheel Commercial Area, Dhaka	Full Service Participant
3	Imtiyaz Hussain & Co.	42, Shahid Tajuddin Ahmed Sawrani (Old) 316 AB Tejgaon Industrial Area, Dhaka-1208	Full Service Participant
4	Chittagong Stock Exchange Ltd.	CSE Building, 1080, Shek Mujib Road, Agrabad Chittagong	Full Service Participant
5	Salam & Co. Ltd.	Room No. 201/205(1^st floor), DSE Building, 9/F, Motijheel Commercial Area, Dhaka-1000	Full Service Participant
6.	Mutual Trust Bank Ltd.,	Bhuiyan Centre, 68 Dilkusha C/A, Dhaka		Custody Participant
7	Jamuna Bank Ltd.,	Printers Building, 5 Rajuk Avenue, Dhaka		Custody Participant
8	Kabir Ahmed & Co.,	DSE Annex Building, 9 E Motijheel, Room No. 902. (7th Floor), Dhaka-1000		Full Service Depository Participant
9	First Security Bank Ltd.,	23, Dilkusha C/A, Dhaka-1000		Custody Participant
10	The Hongkong and Shanghai Banking Corporation Ltd. (HSBC),	Anchor Tower (4th Floor), 1/1-B Sonargaon Road, Dhaka-1205		Custody Participant
11	Janata Bank,	110 Motijheel C/A, Dhaka-1000		Custody Participant
12	Dhaka Stock Exchange Ltd	DSE Building, 9/F, Motijheel C/A, Dhaka-100		Full Service Depository Participant
13	BLI Securities Ltd.,	Printers Building, 5 Rajuk Avenue (7^th Floor), Motijheel C/A, Dhaka-1000		Full Service Depository Participant
14	ICB Securities Trading Co. Ltd	8, DIT Avenue (13th Floor), Dhaka-1000		Full Service Depository Participant
15	Md. Rafiqul Islam & Co.,	DSE Annex Building, Room No.-901 (8th Floor), 9/E Motijheel, Dhaka-1000		Full Service Depository Participant
16	Dhaka Bank Ltd	.Biman Bhaban, 100 Motijheel C/A, Dhaka-1000		Full Service Depository Participant
17	Globe Securities Ltd.,	DSE Building, Room No.-302, 9/F Motijheel C/A, Dhaka-1000		Full Service Depository Participant
18	Md. Feroz Khan & Co	Room No.-313, DSE Building, 9/F, Motijheel C/A, Dhaka-1000		Full Service Depository Participant
19	Asoke Das Gupta & Co.,	Room No. 512, DSE Building, 9/F, Motijheel C/A, Dhaka-1000		Full Service Depository Participant
20	SCL Securities Ltd.,	Modhumita Building (1^st Floor), 160 Motijheel C/A, Dhaka-1000		Full Service Depository Participant
21	M.A. Mannan & Co.,	Room No.-315 & 308, 9/F Motijheel C/A, Dhaka-1000		Full Service Depository Participant
22	Square Securities Management Ltd.,	Square Center, 48 Mohakhali C/A, Dhaka-1205		Full Service Depository Participant
23	SAR Securities Ltd.,	Room No. 506, DSE Building, 9/F Motijheel C/A, Dhaka-1000		Full Service Depository Participant
24	Md. Shakil Rizvi & Co.,	9/E Motijheel C/A (8th Floor), Dhaka-1000		Full Service Depository Participant
25	Country Stock (Bangladesh) Ltd.,	DSE Building, Room No.-724 (6^th Floor), 9/F Motijheel C/A, Dhaka-1000		Full Service Depository Participant
26	PFI Securities Ltd	63 Dilkusha C/A (7th Floor), Dhaka-1000		Full Service Depository Participant
27	Salta Capital Ltd.,	Monjur Building (2^nd Floor), 67 Agrabad C/A, Chittagong		Full Service Depository Participant
28	Royal Capital Ltd.,	Finlay House, Agrabad C/A, Chittagong		Full Service Depository Participant
29	Rising Securities Ltd.,	Room No.-438, 9/E Motijheel C/A, Dhaka-1000		Full Service Depository Participant

30	Moshihor Rahman	Dilkusha Centre(13^th Floor), Suite# 1304, 28 Dilkusha C/A, Dhaka-1000	Full Service
31	Equity Partners Securities Ltd.	Suite# 1002, Dhaka Stock Exchange Annex Building(9^th Floor), 9/E Motijheel C/A, Dhaka-1000	Full Service
32	SES Company Limited	Sonartori Tower(14^th Floor), 12 Sonargaon Road, Dhaka-1000	Full Service
33	CMSL Securities Ltd	Suite# 702(7^th Floor), 28 Dilkusha C/A, Dhaka-1000	Full Service
34	Md. Rakibur Rahman & Co.	Room No. 506, Stock Exchange Building, 9/F Motijheel C/A, Dhaka-1000	Full Service
35	Kazi Enayetur Rahman & Co.	Room No. 406, Stock Exchange Building, 9/F Motijheel C/A, Dhaka-1000	Full Service
36	Meenhar Securities Limited	58 Agarabad C/A(4^th Floor), Chittagong	Full Service
37	Arab Bangladesh Bank Limited	BCIC Bhaban (8^th, 9^th & 10^th Floor), 30-31 Dilkusha C/A, Dhaka-1000	Custody Participant
38	Equity Resources Limited	Jahangir Tower(1^st Floor), 10 Kawran Bazar, Dhaka-1215	Trading Participant
39	Jamal Ahmed & Co.	Room No. 403, 9/F Motijheel C/A, Dhaka-1000	Full Service
40	A B & Co.	Room No. 505, DSE Building (4^th Floor), 9/F Motijheel C/A, Dhaka-1000	Full Service
41	The Trust Bank Limited.	Building # 98, Main Road, Dhaka Cantonment, Dhaka-1206	Custody Participant
42	Southeast Bank Limited	1 Dilkusha C/A (3^rd Floor), Dhaka-1000	Custody Participant
43	International Securities Co. Limited.	1 No. Ali Biponi, Laldighirpar, Sylhet	Full Service
44	Sonali Bank	34-35 Motijheel C/A, Dhaka-1000	Custody Participant
45	International Finance Investment and Commerce Bank Ltd.	BSB Building(17-19^th Floor), 8 Rajuk Avenue, Dhaka-1000	Custody Participant
46	Dutch-Bangla Bank Ltd.	Sena Kalyan Bhaban(4^th Floor), 195 Motijheel C/A, Dhaka-1000	Custody Participant
47	Mercantile Bank Ltd.	61 Dilkusha C/A, Dhaka-1000	Custody Participant
48	Vanik Bangladesh Securities Ltd.	DSE Annex Building(2^nd Floor), 9/E, Motijheel C/A, Dhaka	Full Service
49	Pubali Bank Ltd.	26 Dilkusha C/A, Dhaka-1000	Custody Participant
50	National Bank Ltd.	18 Dilkusha C/A, Dhaka-1000	Custody Participant
51	Eastern Bank Ltd.	Jiban Bima Bhaban(2^nd Floor), 10 Dilkusha C/A, Dhaka-1000	Custody Participant
52	Rapid Securities	Room # 620 & 621 DSE Annex Building, 9/E Motijheel C/A, Dhaka-1000	Full Service
53	Beximco Securities Ltd.	17 Dhanmondi R/A, Road No. 2, Dhaka-1205	Full Service
54	M. Habibur Rahman & Co.	2-3 WAPDA Building, Motijheel, Dhaka-1000	Full Service
55	Hillcity Securities Ltd.	502 Manru Shopping City (4^th Floor), Chowhatta, Sylhet-3100	Full Service
56	Bangladesh Shilpa Bank	BSB Building, 8 Rajuk Avenue, Dhaka-1000	Full Service
57	National Credit and Commerce Bank Ltd.	7/8 Motijheel C/A, Dhaka-1000	Full Service
58	Brac Bank Ltd.	1 Gulshan Avenue, Gulshan Circle-1, Dhaka-1212	Custody Participant
59	Bangladesh Shilpa Rin Sangstha	BSRS Bhaban, 12 Kawran Bazar, Dhaka-1215	Full Service
60	Standard Bank Ltd.	Chamber Building(3^rd Floor), 122-123 Motijheel C/A, Dhaka-1000	Custody Participant
61	Prime Bank Ltd.	119-120 Motijheel C/A, Dhaka-1000	Custody Participant
62	The City Bank Ltd.	Jiban Bima Bhaban, 10 Motijheel C/A, Dhaka-1000	Custody Participant
63	Island Securities Ltd.	Faruk chamber(6^th Floor), 1403 Sk. Mujib Road, Chittagong	Full Service

64	Export Import Bank of Bangladesh Ltd	Printer Building(10^th Floor), 5 Rajuk Avenue, Dhaka-1000, Ph: 9566418, 9566764 FAX: 9556988, E-mail: eximho@bdonline.com	Custody Participant
65	One Bank Ltd	45 Dilkusha C/A, Dhaka-1000 Ph: 9564249, FAX: 9564870. E-mail: md@onebankbd.com	Custody Participant
66	S.N.M. Securities Ltd	Room No. 732, DSE Building, 9E Motijheel C/A, Dhaka-1000, Ph: 9557786, FAX: 9570537	Full Service Participant
67	Mostaque Ahmed Sadeque & Co.	Amin Court(5^th Floor), 62-63 Motijheel C/A, Dhaka-1000 Ph: 9568012, 9569263, FAX: 9561975.	Full Service Participant
68	Bulbul Securities	Room No. 705, DSE Building, 9F Motijheel C/A, Dhaka-1000 Ph:9564596, 9574704, FAX: 9564727	Full Service Participant
69	Md. Shafiqur Rahman & Co.	Room No. 637, DSE Building, 9E Motijheel C/A, Dhaka-1000, Ph: 7168470.	Full Service Participant
70	M. Shamsur Rahman & Co.	CWNA(A), 12 Kamel Ataturk Avenue, Gulshan Model Town, Dhaka-1212 Ph: 9896134, 9894581, 9895913	Full Service Participant
71	L.R.K. Securities Ltd.	Modhumita Building(2^nd Floor), 160 Motijheel C/A, Dhaka-1000, Ph: 9569480, 7125444 FAX: 7112025, E-mail: lrk@bangla.net	Full Service Participant
72	Royal Green Securities Ltd.	Room No. 715, DSE Building, 9/F Motijheel C/A, Dhaka-1000, Ph: 9564573, 9571161 FAX: 9564718, E-mail: evergren@agni.com	Full Service Participant
73	Syed Mahbub Murshed & Co.	Room No. 708( 2^nd Floor), DSE Building, 9F Motijheel C/A, Dhaka-1000 Ph: 9553460. FAX: 9553465	Full Service Participant
74	Dastagir Md. Adil & Co.	Room No. 720( 6^th Floor), DSE Building, 9/F Motijheel C/A, Dhaka-1000 Ph: 9551374, FAX: 9563977	Full Service Participant
75	Giasuddin Ahmed &Co.	Room No. 309(2^nd Floor), DSE Building, 9/F Motijheel C/A, Dhaka-1000, Ph: 9561258, 9555178, E-mail: tuhin4k@yahoo.com	Full Service Participant
76	R.N. Trading Ltd.	Room No. 416 & 418, DSE Building, 9F Motijheel C/A, Dhaka-1000. Ph: 7175710, FAX: 9564727	Full Service Participant
77	Hedayetullah Securities Ltd.	Room No. 624 & 629( 5^th Floor), DSE Building, 9E Motijheel C/A, Dhaka-1000 Ph: 9569622, 9559098	Full Service Participant
78	Bangladesh Small Industries and Commerce Bank Ltd.	Sena Kalyan Bhaban(6^th Floor), Motijheel C/A, Dhaka-1000, Ph: 9564830, 9567910 FAX: 9564829, E-mail: basicho@citechco.net	Custody Participant
79	Bank Asia Ltd	Rangs Bhaban 113-116, old Air port Road Tejgaon Dhaka .Tel.	Custody Participant
80	Dragon Investment & Securities	Bilquis Tower, 3^rd Floor, Plot-6 (New), 2bd Circle, Gulshan, Dhaka-1212. Ph: 9861969, 8828508, 8810170. FAX: 8828509, E-mail: dis@bdcom.com	Full Service Participant
81	Dawn International	Room No. 311/312 DSE Building, Motijheel C/A, Dhaka-1000, Ph: 9550843, 9564601- 311/312.	Full Service Participant
82	The Premier Bank Limited	Iqbal Centre (4^th Floor), 42 Kemal Ataturk Avenue, Banani, Dhaka-1213, Ph:9887581-84, FAX: 8815393, E-mail: prebank@bangla.net	Custody Participant
83	Md. Tobarrak Hossain,	Room # 622, 9/E Motijheel C/A, Dhaka-1000, Ph: 7171437, 019311099, FAX: 9564071.	Full Service Participant
84	Zubayed Ahmed Adel & Co.	Room # 632 (5^th Floor), 9/E Motijheel C/A, Dhaka-1000, Ph: 7168417, 7168970, 9564601, EXT: 632	Full Service Participant
85	M. Abdul Rashid & Co.	Room # 601, Stock Exchange Building, 9F Motijheel, Dhaka-1000. Ph: 9556617, FAX: 9564714	Full Service Participant
86	Mohammad Atiqul Haque & Co.	Room # 716, DSE Building, 9/F Motijheel C/A, Dhaka-1000, Ph: 9550475,9551359, FAX: 9561807.	Full Service Participant
87	Khwaja Ghulam Rasul & Co.	Room # 703, 704, Stock Exchange Building, 9F Motijheel, Dhaka-1000. Ph: 9553907, 9560948 FAX: 9564727	Full Service Participant
88	Tariq Ibrahim & Co.	Room No. 424 (3^rd Floor), 9/E, Motijheel C/A., Dhaka-1000, Ph: 9350372, 9331020, Fax: 88-02-8316923, E-mail: korobitf@aitlbd.net	Full Service Participant
89	Banco Securities Ltd.	Ispahani Building (3rd Floor), 14-15 Motijheel, Dhaka-1000, Ph: 9564922, 9569541, Fax: 9569612, E-mail: banco@global-bd.net	Full Service Participant
90	Anwar Securities Ltd.	Suite 518/519, Dhaka Stock Exchange Annex Building, (4^th floor) 9/E Motijheel C/A, Dhaka-1000, Ph: 9569443, 9565571, Fax: 9569443, E-mail: anwar@citechco.net	Full Service Participant
91	A. B. S. Safdar & Co.	Room # 626, 9/E Motijheel C/A, Dhaka-1000, Ph: 9559353, 7175703-11 Ext. 626	Full Service Participant
92	North West Securities Ltd.	Jiban Bima Bhaban (5^th floor), 56 Agrabad C/A Chittagong, Ph: 031-715266, Fax: 031-710768	Full Service Participant
93	M. A. Huq Howlader & Co.	Room No. 706, Dhaka Stock Exchange Building, 9/F Motijheel C/A, Dhaka-1000 Ph: 9551148, Fax: 9564727	Full Service Participant
94	Trustry Associates Co. Ltd.	Room # 527 (4^th Flr.), 9/E Motijheel C/A, Dhaka-1000, Ph: 9554344 Fax: 9565661	Full Service Participant
95	Jobair & Co.	Room # 306, Stock Exchange Building, 9/F Motijheel C/A, Dhaka-1000. Ph: 9551534, 7176021, E-mail: aauto@agnionline.com	Full Service Participant
96	M. Securities Ltd.	Room # 434 DSE Annex Building, 9/E Motijheel C/A (3^rd Floor), Dhaka-1000. Ph: 9560792	Full Service Participant
97	Shahed Abdul Khaleque & Co.	Room # 457 DSE Annex Building, 9/E Motijheel C/A, Dhaka-1000. Ph: 7121138, Cell Ph: 0171522212	Full Service Participant
98	National Investment And Finance Company Ltd.	Sultan Building (2^nd Floor), 147 Motijheel C/A, Dhaka. Ph: 9550037, 9563255, E-mail: nifco@bdonline.com	Full Service Participant
99	Rupali Bank	Rupali Bhaban, 34 Dilkusha C/A, Dhaka-1000 Ph: 9552481, 9553332, Fax: 9564148	Custody Participant

Exemption to the ICB Securities Trading Co. Ltd. as regards Members’ Margin Requirement:

The Commission exempted the ICB Securities Trading Co. Ltd., DSE Member No. 129 from the requirements of Section 4(1) of Dhaka Stock Exchange (Member’s Margin) Regulations, 2000 in respect of the additional trade exposure covering its simultaneous buy and sale (cross trade) executed for and on account of all ICB mutual Funds only.

DSE COMPARATIVE STATEMENT

Comparative Positions of DSE Listed Securities and Their Transactions over Previous Year are given Below:

Indicators (Listed)

As on June

30, 2003

As on June

30, 2004

%Change (+/-)

No. of companies (Share)	241	248	2.90
No. of mutual funds	10	11	10
No. of debentures	9	8	(11.11)
Total No. of Listed Securities	260	267	2.69

Figures in Million

No. of shares of all listed companies	972.7	1113.4	14.46
No. of certificates of all listed mutual funds	72.2	73.2	1.38
No. of debentures of all listed debentures	0.7	0.4	(42.86)
Total No. of Tradable Securities	1,045.6	1187.0	13.52

Figures in Million

Annual Total Turnover (Volume)	1091.128	535.7	(50.90)
Annual Total Turnover (Value) Tk.	30596.53	24770.0	(19.40)
Total Issued Capital Tk.	36081.00	48945.0	35.65
Total Market Capitalization Tk.	72998.00	142369.0	95.03

All Share Price Index

830.46

( General index of A&B category companies)

1318.92

( General index of A & B category companies)

58.81

CSE COMPARATIVE STATEMENT

Comparative Positions of Securities listed on CSE and their transactions over previous year are given below:

Indicators (Listed)

As on June

30, 2003

As on June 30, 2004

% Change (+/-)

No. of companies (Share)	172	182	5.81
No. of mutual funds	10	11	10
No. of debentures	3	2	(33.33)
Total No. of Listed Securities	185	195	5.40

Figures in Million

No. of shares of all listed companies	822.6	988.8	20.20
No. of certificates of all listed mutual funds	72.3	73.2	1.24
No. of debentures of all listed debentures	0.1	0.05	(50)
Total No. of Tradable Securities	895.0	1062.05	18.66

Figures in Million

Annual Total Turnover (Volume)	424.07	248.9	(41.31)
Annual Total Turnover (Value) Tk.	10911.95	8440.00	(22.65)
Total Issued Capital Tk.	31906.7	44361.2	39.03
Total Market Capitalization Tk.	60208.6	125911.3	109.12

All Share Price Index

1841.24

(A&B category companies)

2329.46

( All share price index)

41.80

DSE OPERATIONAL STATISTICS

July 2003–June 2004

Trading	Index	Turnover of Securities (Million)		Traded Amount in Million Tk.		Market Capitalization
Month	(General/ Weighted Average)	Monthly	Daily Average	Monthly	Daily Average	Million Tk.	% Change with Previous Month
July 2003	823.26	44.1	1.7	1434.2	59.8	70998	—
August	823.23	32.5	1.4	791.1	34.4	70314	(0.96)
September	823.23	27.3	1.1	727.0	30.3	73000	3.82
October (General)	801.27	21.6	0.9	803.3	33.4	74214	1.66
November	920.61	55.3	2.6	1879.5	89.5	85582	15.32
December	967.88	83.1	3.6	3149.1	136.9	97587	14.03
January 2004	961.18	30.8	1.2	1877.0	75.0	97522	(0.07)
February	953.81	23.6	1.3	835.7	49.1	97869	0.35
March	973.88	32.6	1.3	1641.6	68.4	100429	2.61
April	1112.19	40.8	2.0	3400.8	170.0	114824	14.33
May	1185.83	61.2	2.7	3768.4	163.8	124834	8.72
June 2004	1318.92	82.6	3.3	4462.1	178.5	142369	14.05
Total 2008-2009	—	535.5	—	24769.8	—	—	—

* Market Capitalization of the last trading day of the month has been taken into account.

CSE OPERATIONAL STATISTICS

July 2003–June 2004

Trading	Index	Turnover of Securities (Million)		Traded Amount in Million Tk.		Market Capitalization
Month	(General/Weighted Average)	Monthly	Daily Average	Monthly	Daily Average	Million Tk.	% Change with Previous Month
July 2003	1841.23	8.2	0.3	404.1	15.5	59978.7	—
August	1840.954	3.3	0.1	57.6	2.5	58278	(2.83)
September	1840.99	4.2	0.2	527.3	6.9	55452.4	(4.85)
October (General)	1383.03	40	0.17	79.6	3.3	63285.6	14.12
November	1591.12	17.6	0.84	393.6	18.7	73487	16.12
December	1642.79	55.1	2.4	1596.9	69.4	85439.4	16.26
January 2004	1599.96	13.1	0.5	663.3	26.5	86942.9	1.76
February	1588.38	7.1	0.4	120.1	7.1	87810.1	0.99
March	1630.93	14.3	0.6	437	18.2	90168.3	2.68
April	1877.36	23.6	1.2	1268.3	63.4	103301.9	14.56
May	2064.45	40.9	1.8	1495.1	65	113148	9.53
June 2004	2329.46	57.2	2.3	1858.7	74.3	125911.3	11.28
Total 2008-2009	—	248.6	—	8901.6	—	—	—

* Market Capitalization of the last trading day of the month has been taken into account.

PORTFOLIO INVESTMENT BY THE NON- RESIDENT BANGLADESHIS (MONTHLY STATISTICS)

July 2003 –June 2004

Taka in Million

Month	Deposit in NRITA	Investment in Securities	Amount sold	Purchase price of the sold share	Capital gain/loss	Dividend excluding capital gain	Outflow of sold amount
July 2003	—	—	–	–	–	6.6	6.6
August	7.9	7.9	1.8	3.9	2.1	0.8	1.8
September	5.1	5.1	0.5	0.5	–	0.3	1.1
October	18.8	18.8	–	–	–	18	2.4
November	–	–	–	–	–	–	15.6
December	63.2	53.5	14.3	8.7	5.6	–	3.5
Jan. 2004	1.2	1.8	3.3	1.4	1.9	–	13.9
February	1.9	1.9	1.4	0.6	0.8	–	1.4
March	–	–	0.9	0.4	0.5	0.3	1.5
April	180.6	177.7	0.5	0.2	0.3	–	0.5
May	32.2	32.2	2.4	0.9	1.5	0.7	2.8
June 2004	0.1	–	–	–	–	4.5	5.1
Total	311	298.9	25.1	16.6	12.7	31.2	56.2

NRITA- Non Resident Investment Taka Account

Source: Bangladesh Bank

PORTFOLIO INVESTMENT BY THE NON RESIDENT BANGLADESHIS (YEARLY STATISTICS)

April 1992-June 2004 Taka in Million

Period	Deposit in NRITA	Investment in Securities	Amount sold	Purchase price of the sold share	Capital gain/ loss	Dividend excluding capital gain	Outflow of sold amount
April 92 – June 92	57.30	50.80	—	—	—	—	—
July 92 – June 93	316.90	387.50	81.20	35.40	5.80	3.30	38.60
July 93 – June 94	3196.60	3101.80	965.10	510.50	404.60	17.60	918.40
July 94 – June 95	3094.40	2982.70	1334.20	928.10	406.10	92.70	1388.90
July 95 – June 96	738.50	716.80	1877.10	1893.40	(16.30)	146.80	1972.00
July 96 – June 97	527.80	518.00	6186.80	3443.40	2743.40	122.90	6332.10
July 97 – June 98	309.80	316.00	517.50	693.10	(175.60)	97.10	601.80
July 98 – June 99	95.10	95.60	410.70	531.60	(120.90)	43.40	451.10
July 99 –June 2000	278.90	393.60	584.40	878.70	(294.30)	54.50	613.40
July 2000–June 2001	304.40	323.50	344.30	337.90	6.40	51.80	377.60
July 2001-June 2002	29.00	28.70	287.70	400.70	(113.00)	32,945	324.60
July 2002-June 2003	116.6	120.1	51.3	73.00	29.9	30.9	77.1
July2003-June 2004	311	298.9	25.1	16.6	12.7	31.2	56.2

NRITA- Non Resident Investment Taka Account

Source: Bangladesh Bank

LISTING DETAILS

July 2003-June 2004

Name of the Issuer	Date of Listing		Issued Capital
	DSE	CSE	(Taka Million)
Keya Detergent Ltd	03/7/2003		135.30
Mutual Trust Bank Ltd	10/7/2003		600.00
ICB AMCL First Mutual Fund	29/9/2003		100.00
ICB AMCL First Mutual Fund	07/10/2003	01/10/2003	100.00
Khawza Mozaik Tiles and Stone Ind. Ltd	–	30/10/2003	80.00
Agni Systems Ltd	04/11/2003		80.00
Standard Bank Ltd	15/11/2003	17/11/2003	660.00
One Bank Ltd	04/12/2003	06/12/2003	600.00
Lafarz Surma Cement Ltd	27/12/2003	14/12/2003	5806.90
Bata Shoe Company (Bangladesh) Ltd		01/1/2004	136.80
Bank Asia Ltd	06/1/2004	08/1/2004	600.00
JMI – Bangla Company Ltd		12/1/2004	110.00
Marcantile Bank Ltd	11/2/2004	26/2/2004	630.00
Daffodil Computers Ltd		14/2/2004	175.00
Total			9814.00

SURVEILLANCE

Inspection:

During the period, eleven brokerage houses were inspected by SEC based on some specific observations of surveillance people responsible for monitoring daily securities trading. In this period the Commission requested CSE to investigate into the books and records of three brokerage houses of CSE in respect of transactions of Bank Asia shares and asked DSE to inspect books and records of three brokerage houses of DSE regarding trading of Bata Shoe Company shares, Beach Hatchery Ltd shares and Rahman Chemical shares. In the referred period the Commission decided that the SEC’s Surveillance Team should conduct regular inspection of books and records of at least one stock broker/dealer of the stock exchanges in each month. Accordingly, the SEC Surveillance team carried out inspection in compliance with the aforesaid decision.

The SEC’s Surveillance team also detected unusual/abnormal trading of Tripti Industries Ltd, at DSE. Based on the recommendation of the Surveillance Team the Commission suspended trading of securities of Tripti Industries Ltd. and constituted an enquiry committee in this respect. During this period the SEC requested DSE to investigate into the securities transactions of Lafarge Surma Cement Ltd. and NCCBL and requested CSE to investigate into securities transactions of Lafarge Surma Cement Ltd. and BCIL. In the referred period, as a part of regular inspection, SEC’s Surveillance Team visited two brokerage houses of DSE and two brokerage houses of CSE to examine books and records for ensuring proper compliance with the securities laws. Besides, the Commission constituted five enquiry committees to enquire into the transactions of Mercantile Bank Ltd., Mutual Trust Bank Ltd., One Bank Ltd, Uttara Bank Ltd. and Bank Asia Ltd.

Surveillance:

The Surveillance Department of the Commission monitors on real time basis the trading of securities on Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd. through non-trading version of work stations. Through this system the SEC Surveillance Officers watch the daily trading pattern and time to time inform the top management of the Commission about the market condition.

At the end of the trading period, a report containing abnormal activities, if found during the trading period, is prepared and submitted to the Chairman, Members and other senior officials.

Analysis of Trading Data:

Surveillance Department of SEC analyzes the post trading data on regular basis. Relevant data and trading information are regularly collected from the exchanges based on which analysis and calculation are done. In this connection historical data analysis of the company is carried out and emphasis is given on the price and volume trend of the securities. If the analysis reveals any abnormal trend or volatility in terms of turnover and price movement, then primary inspection is conducted in order to ascertain the reason(s) behind such movement and if anything suspected wrong, then the matter is placed to higher authority for further action.

Special Watch on the Trading of Z Category Shares:

The Surveillance Staff of SEC closely monitor the trading of ‘Z’ category shares, particularly, in respect of price movement of these shares. If any unusual price change in the trading of ‘Z’ category share is noticed, then the matter is taken up with the higher authority and, if necessary, the concerned brokerage houses are asked to furnish the relevant papers for examination.

Supervision and Regulation of Markets and Intermediaries

Complaint Statement

Period July 2003- June 2004

Against Listed Companies

Nature of Complaints	No.	Resolved	Under process	Referred for enforcement action
Non-payment or delay in payment of declared dividend	69	17	39	13
Non-payment or delay in payment of interest of Debenture	16	3	13	–
Claim of dividend against lost shares	–	–	–	–
Regarding transfer of shares	6	3	3	–
Regarding non refund of IPO deposits	–	–	–	–
Total	91	23	55	13

Against Stock Broker/Dealer

Nature of Complaints	No.	Resolved	Under process	Referred for enforcement action
Regarding non delivery of shares	28	7	20	1
Regarding non refund of clients money	63	6	56	1
Total	91	13	76	2

Enforcement

The following is the list of enforcement actions taken against stock-dealers, stock-brokers, issuer companies and/or its directors, various institutions and individuals by the Commission during the period of July 2003 – June 2004for reasons appearing against their name:

(A) Brokerage House: Warned

Sl. No.	Name	Nature of default/Appeal	Commission’s decision
01.	Unity Shares Trade Ltd. (CSE Member No. 77)	Violation of license condition No. 11 (for non participation of trading activities during 2001-2002) by Chittagong Stock Exchange broker Unity Shares Trade Ltd. (CSE Member No. 77).	Letter issued with warning to comply with all securities laws in future.
02.	Raja Securities Ltd. (CSE Member No. 074)	Violation of rule 13 (4) of the Securities and Exchange Commission (Stock Dealer, Stock Broker and Authorized Representatives) Regulations, 2000 & condition 10 of the Stock Dealer Registration Certificate (non submission of financial statement) and Section 6(3) of the Securities and Exchange Ordinance, 1969 (Non-response to commission letter) by Chittagong Stock Exchange broker/dealer Raja Securities Ltd. (CSE Member No. 074).	Letter issued with warning to comply with all securities laws in future.
03.	Surma Securities Holding Co. Ltd. (DSE Member No. 111).	Contravention of the provisions of rule 4, sub-rule 1; rule 8, sub-rules, clause (cc) and (CCC) of Securities and Exchange Rules, 1987 and regulation 13 of Settlement of Stock Exchange Transactions Regulation, 1998 by stock dealer Surma Securities Holding Co. Ltd. (DSE Member No. 111).	Letter issued with warning to comply with all securities laws in future.
04.	S. R. Capital Limited	Alleged contravention of the provisions of rule 2 (Gha) of the Securities and Exchange Commission (Stock Dealer, Stock Broker and Authorized Representatives) Regulations, 2000, and the condition No. 11 of the stock-broker registration certificate, granted under the Securities and Exchange Commission (Stock Dealer, Stock Broker and Authorized Representatives) Regulations, 2000, by S. R. Capital Limited.	Letter issued with warning to comply with all securities laws in future.

(B) Brokerage House: Penalized/License cancellation and or suspension/Appeal/Review

Sl. No.	Name of the Company		Nature of default/Appeal			Commission’s decision
01.	Vanik Bangladesh Securities Ltd. [DSE Member No. 132].		Alleged contravention of the provisions of regulation 13 of the Settlement of Stock Exchange Transactions Regulations, 1998 of Dhaka Stock Exchange Limited, rule 4 and rule 8 of the Securities and Exchange Rules, 1987, rule 3 (2) of the Margin Rules, 1999, conduct rule 2(1) and 7 [code of conduct of Stock Dealer, Stock Broker explained in the second schedule of the Securities and Exchange Commission (Stock Dealer, Stock Broker and Authorized Representatives) Regulations, 2000, of the Securities and Exchange Commission (Stock Dealer, Stock Broker and Authorized Representatives) Regulations, 2000, by Vanik Bangladesh Securities Ltd., [DSE Member No. 132].			Considering reply, the charges were withdrawn.
02.		Banco Trans World (Bangladesh) Ltd.		Alleged contravention of securities laws as pointed out in the enquiry report, among other things, continuation of trading despite surrender of brokerage license to the Commission.			Penalty of Taka 1.00 lac imposed on Banco Trans World (Bangladesh) Ltd.
03.		M/s. Haji Mohammad Ali & Co., DSE Membership No. 165			Alleged trading of Uttara Bank shares by one of the directors of the bank through M/s. Haji Mohammad Ali & Co., DSE membership No. 165 without depositing money etc.		Directive issued under section 20A of the Securities and Exchange Ordinance, 1969 (XVII of 1969), to the Dhaka Stock Exchange Ltd. to immediately stop the trading related facilities provided to M/s. Haji Mohammad Ali & Co. (DSE Membership No. 165), until further order from the Commission.
04.		M/s. Haji Mohammad Ali & Co., DSE membership No. 165			Alleged trading of Uttara Bank shares by one of the directors of the bank through M/s. Haji Mohammad Ali & Co., DSE membership No. 165 without depositing money etc.		Considering the interest of the investors and the securities market, the directive given earlier for stopping the trading facilities, has been withdrawn.
05		Syed Tawfiq Hossain Ali and Company (DSE Member No. 49)			Non payment of client’s money and non delivery of shares by Dhaka Stock Exchange dealer Syed Tawfiq Hossain Ali and Company (DSE Member No. 49)		Considering the DSE’s letter No. DSE/2004/1716 dated 6^th June 2004, the directive given earlier (for freezing of membership) has been withdrawn.

(C) Issuer Company and/ or Directors of the Issuer Company: Directives/Penalty/Appeal/ Review

Sl. No.	Name of the Company	Nature of default/Appeal	Commission’s decision
01.	Major (Rtd.) Md. Akhtaruzzaman, Managing Director, Gachihata Acquaculture Farms Ltd.	Non payment of declared dividend of 2001-2002 by Gachihata Acquaculture Farms Limited within stipulated time.	Penalty of Taka 1.50 crore imposed on Major (Rtd.) Md. Akhtaruzzaman, Managing Director of the Company.
02.	Mr. Md. Abdur Razzak, Managing Director, Raspit Data Management & Telecommunication Limited	Non payment of declared dividend of 2001-2002 by Raspit Data Management & Telecommunication Limited within stipulated time.	Penalty of Taka 55.00 lacs imposed on Mr. Md. Abdur Razzak, Managing Director of the Company.
03.	Mr. Md. Rahmatullah, Managing Director, Apex Tannery Ltd.	Appeal against Commission’s order No. SEC/Enforcement/158/ 2003-75 dated 28 April 2003 (for non-disclosure of Price Sensitive information) imposing Taka one lac penalty on Mr. Md. Rahmatullah, Managing Director of Apex Tannery Ltd.	Penalty of Taka one lac withdrawn. Mr. Md. Rahmatullah is warned for compliance of all securities laws in future.
04.	Mr. Nurunabi, Managing Director, Rupan Oil & Feeds Ltd.	Non holding of annual general meeting by Rupan Oil & Feeds Ltd.	Penalty of Taka 1.00 lac imposed on Mr. Nurunabi, Managing Director of the Company. An additional penalty of Taka 10,000 per day if default continues after 15 days.
05.	Mr. M. A. Salam, Managing Director Paragon Leather & Footwear Industries Ltd.	Non holding of annual general meeting by Paragon Leather & Footwear Industries Ltd.	Penalty of Taka 1.00 lac imposed on Mr. M. A. Salam, Managing Director of the Company. An additional penalty of Taka 10,000 per day if default continues after the date of order.
06.	Mr. Khan Mohammad Iqbal, Chairman & Managing Director Sonali Paper & Board Mills Ltd.	Non holding of annual general meeting by Sonali Paper & Board Mills Ltd.	Penalty of Taka 1.00 lac imposed on Mr. Khan Mohammad Iqbal, Chairman & Managing Director of the Company. An additional penalty of Taka 10,000 per day if default continues after the date of order.
07.	Karim Pipe Mills Ltd.	Non holding of annual general meeting by Karim Pipe Mills Ltd.	Penalty of Taka 1.00 lac imposed on Mr. Juglul Karim, Director of the Company. An additional penalty of Taka 10,000 per day if default continues after the date of the order.
08.	Mr. Khan Mohammad Iqbal, Chairman & Managing Director of Sonali Paper & Board Mills Ltd.	Appeal against Commission’s order dated 22/03/2004 imposing penalty of Taka 1.00 lacs (and also additional penalty of Taka 10,000 per day if default continues after the date of the order) on Mr. Khan Mohammad Iqbal, Chairman & Managing Director of Sonali Paper & Board Mills Ltd. for non holding of annual general meeting.	Appeal rejected. The Commission, however, has withdrawn additional penalty of Taka 10,000 per day.
09.	A. B. Biscuit Company Limited.	Non holding of annual general meeting by A. B. Biscuit Company Limited.	Penalty of Taka 1.00 lac imposed on Mr. Md. Habibur Rahman Mia, Chairman of the issuer. An additional penalty of Taka 10,000 per day if default continues after the date of order.

(D) Issuer Company and /or Directors of the Company: Warned

Sl. No.		Nature of default/Appeal	Commission’s decision
01.	Mr. Ekram Ali Mirdha Sponsor Ashraf Textile Mills Ltd.	Violation of Commission’s Notification No. SEC/SRMID/2000-953/313/Admin-06 dated 25^th March 2001 and gazetted on 16 April 2001 (buy/sell of securities by the Sponsor/Director without prior notification) by Mr. Ekram Ali Mirdha, Sponsor of Ashraf Textile Mills Ltd.	Letter issued with warning to comply with all securities laws in future.
02.	Ms. Rahat Saleha Sponsor Ashraf Textile Mills Ltd.	Violation of Commission’s Notification No. SEC/SRMID/2000-953/313/Admin-06 dated 25^th March 2001 and gazetted on 16 April 2001 (buy/sell of securities by the Sponsor/Director without prior notification) by Ms. Rahat Saleha, Sponsor of Ashraf Textile Mills Ltd.	Letter issued with warning to comply with all securities laws in future.
03.	Ms. Shamsun Nessa Begum, Sponsor Ashraf Textile Mills Ltd.	Violation of Commission’s Notification No. SEC/SRMID/2000-953/313/Admin-06 dated 25^th March 2001 and gazetted on 16 April 2001 (buy/sell of securities by the Sponsor/Director without prior notification) by Ms. Shamsun Nessa Begum, Sponsor of Ashraf Textile Mills Limited.	Letter issued with warning to comply with all securities laws in future.
04.	Mr. M. Ataullah Sponsor Ashraf Textile Mills Ltd.	Violation of Commission’s Notification No. SEC/SRMID/2000-953/313/Admin-06 dated 25^th March 2001 and gazetted on 16 April 2001 (buy/sell of securities by the Sponsor/Director without prior notification) by Mr. M. Ataullah, Sponsor of Ashraf Textile Mills Ltd.	Letter issued with warning to comply with all securities laws in future.
05.	Ms. Salima Begum Sponsor Ashraf Textile Mills Ltd.	Violation of Commission’s Notification No. SEC/SRMID/2000-953/313/Admin-06 dated 25^th March 2001 and gazetted on 16 April 2001 (buy/sell of securities by the Sponsor/Director without prior notification) by Ms. Salima Begum, Sponsor of Ashraf Textile Mills Ltd.	Letter issued with warning to comply with all securities laws in future.
06.	Mr. Haider Ali Mirdha Sponsor Ashraf Textile Mills Ltd.	Violation of Commission’s Notification No. SEC/SRMID/2000-953/313/Admin-06 dated 25^th March 2001 and gazetted on 16 April 2001 (buy/sell of securities by the Sponsor/Director without prior notification) by Mr. Haider Ali Mirdha, Sponsor of Ashraf Textile Mills Limited.	Letter issued with warning to comply with all securities laws in future.
07.	Mr. Asgar Ali Mirdha Sponsor Ashraf Textile Mills Ltd.	Violation of Commission’s Notification No. SEC/SRMID/2000-953/313/Admin-06 dated 25^th March 2001 and gazetted on 16 April 2001 (buy/sell of securities by the Sponsor/Director without prior notification) by Mr. Asgar Ali Mirdha, Sponsor of Ashraf Textile Mills Limited.	Letter issued with warning to comply with all securities laws in future.
08.	Ms. Rahima Khatun Sponsor Ashraf Textile Mills Ltd.	Violation of Commission’s Notification No. SEC/SRMID/2000-953/313/Admin-06 dated 25^th March 2001 and gazetted on 16 April 2001 (buy/sell of securities by the Sponsor/Director without prior notification) by Ms. Rahima Khatun, Sponsor of Ashraf Textile Mills Ltd.	Letter issued with warning to comply with all securities laws in future.
09.	Ms. Ferdousi Begum Sponsor Ashraf Textile Mills Ltd.	Violation of Commission’s Notification No. SEC/SRMID/2000-953/313/Admin-06 dated 25^th March 2001 and gazetted on 16 April 2001 (buy/sell of securities by the Sponsor/Director without prior notification) by Ms. Ferdousi Begum, Sponsor of Ashraf Textile Mills Limited.	Letter issued with warning to comply with all securities laws in future.
10.	Ms. Rabeya Akhter Sponsor Ashraf Textile Mills Ltd.	Violation of Commission’s Notification No. SEC/SRMID/2000-953/313/Admin-06 dated 25^th March 2001 and gazetted on 16 April 2001 (buy/sell of securities by the Sponsor/Director without prior notification) by Ms. Rabeya Akhter, Sponsor of Ashraf Textile Mills Ltd.	Letter issued with warning to comply with all securities laws in future.
11.	Ms. Umme Homaira Sponsor Ashraf Textile Mills Ltd.	Violation of Commission’s Notification No. SEC/SRMID/2000-953/313/Admin-06 dated 25^th March 2001 and gazetted on 16 April 2001 (buy/sell of securities by the Sponsor/Director without prior notification) by Ms. Umme Homaira, Sponsor of Ashraf Textile Mills Ltd.	Letter issued with warning to comply with all securities laws in future.
12.	Mr. Shafiul Alam Sponsor Ashraf Textile Mills Ltd.	Violation of Commission’s Notification No. SEC/SRMID/2000-953/313/Admin-06 dated 25^th March 2001 and gazetted on 16 April 2001 (buy/sell of securities by the Sponsor/Director without prior notification) by Mr. Shafiul Alam, Sponsor of Ashraf Textile Mills Ltd.	Letter issued with warning to comply with all securities laws in future.
13.	Ms. Hamida Begum Sponsor Ashraf Textile Mills Ltd.	Violation of Commission’s Notification No. SEC/SRMID/2000-953/313/Admin-06 dated 25^th March 2001 and gazetted on 16 April 2001 (buy/sell of securities by the Sponsor/Director without prior notification) by Ms. Hamida Begum, Sponsor of Ashraf Textile Mills Ltd.	Letter issued with warning to comply with all securities laws in future.
14.	Ms. Sabrina Akhter Sponsor Ashraf Textile Mills Ltd.	Violation of Commission’s Notification No. SEC/SRMID/2000-953/313/Admin-06 dated 25^th March 2001 and gazetted on 16 April 2001 (buy/sell of securities by the Sponsor/Director without prior notification) by Ms. Sabrina Akhter, Sponsor of Ashraf Textile Mills Ltd.	Letter issued with warning to comply with all securities laws in future.
15.	Mr. Al-Haj Mohd. Salah Uddin Ahmed, Sponsor, Ashraf Textile Mills Ltd.	Violation of Commission’s Notification No. SEC/SRMID/2000-953/313/Admin-06 dated 25^th March 2001 and gazetted on 16 April 2001 (buy/sell of securities by the Sponsor/Director without prior notification) by Mr. Al-Haj Mohd. Salah Uddin Ahmed, Sponsor of Ashraf Textile Mills Limited.	Letter issued with warning to comply with all securities laws in future.
16.	Mr. Siraj Uddin Haider Director/Sponsor Usmania Glass sheet Factory Ltd.	Violation of Commission’s Notification No. SEC/SRMID/ 2000-953/313/ Admin-06 dated 25 March 2001 and gazetted on 16 April 2001 (non-submission of written report of buy/sell of share) by Director/Sponsor Mr. Siraj Uddin Haider of Usmania Glass sheet Factory Ltd.	Letter issued with warning to comply with all securities laws in future.
17.	Mr. Mohammad Sadek, Director/Sponsor Usmania Glass sheet Factory Ltd.	Violation of Commission’s Notification No. SEC/SRMID/ 2000-953/313/ Admin-06 dated 25 March 2001 and gazetted on 16 April 2001 (non-submission of written report of buy/sell of share) by Director/Sponsor Mr. Mohammad Sadek of Usmania Glass sheet Factory Ltd.	Letter issued with warning to comply with all securities laws in future.
18.	Mr. M. R. Raskin Director/Sponsor Usmania Glass sheet Factory Ltd.	Violation of Commission’s Notification No. SEC/SRMID/ 2000-953/313/ Admin-06 dated 25 March 2001 and gazetted on 16 April 2001 (non-submission of written report of buy/sell of share) by Director/Sponsor Mr. M. R. Raskin of Usmania Glass sheet Factory Ltd.	Letter issued with warning to comply with all securities laws in future.

(D) Issuer Company: Warned

Sl. No.	Name	Nature of default/Appeal	Commission’s decision
01.	Pubali Bank Ltd.	Sale of bonus share of shareholder by Pubali Bank Ltd. violating advise of SEC.	Letter issued with warning to comply with Commission’s advise / instructions and securities related laws in future.
02.	United Commercial Bank Ltd.	Violation of Commission’s order No. SEC/Sec-7/99-140 dated 28 April 1999 (non-transfer of lodged share within stipulated time) by United Commercial Bank Ltd.	Letter issued with warning to comply with all securities laws in future.
03..	Beach Hatchery Ltd.	Failure to comply with the condition of the prospectus regarding payment of 15% dividend to the preference shareholders as well as the provision of securities laws regarding payment of dividend by Beach Hatchery Ltd.	Letter issued with warning to comply with all securities laws in future.
04.	Mona Food Industries Ltd.	Violation of rule 12, Sub-rule (3A), rule 13 of the Securities and Exchange Rules, 1987 (not submitting financial statement for 2000-2001 and half-yearly financial statements for the half-year ended 31 December 2001) by Mona Food Industries Ltd.	Issued warning to comply with all securities laws in future.
05.	Anwar Galvanizing Limited	Failure to pay the dividend declared by Anwar Galvanizing Limited for the shareholders on March 23, 2003 at 5% within 60 days of declaration in terms of the erstwhile CCI’s Notification No. SRO. 385-Law/91 dated 15^th December 1991, being the order made under section 2G of the Securities and Exchange Ordinance, 1969.	Letter issued with warning to comply with all securities laws in future.
06	Central Insurance Company Limited	Failure to pay off the dividend declared by Central Insurance Company Limited within 60 days of declaration in terms of the erstwhile CCI’s Notification No. SRO. 385-Law/91 dated 15^th December 1991, being the order made under section 2G of the Securities and Exchange Ordinance, 1969.	Letter issued with warning to comply with all securities laws in future.

(E) Issuer Company: Directives/Order Issued

Sl. No.	Name	Nature of default/Appeal	Commission’s decision
01.	Bangladesh Luggage Industries Ltd.	Non co-operation with SEC appointed auditor by Bangladesh Luggage Industries Ltd.	Directive issued under section 20A of the Securities and Exchange ordinance, 1969 to co-operate immediately with SEC appointed auditor.
02.	M. Hossain Garments Washing and Dyeing Ltd.	Non-payment of audit bill by M. Hossain Garments Washing and Dyeing Ltd.	Directive issued under section 20A of the Securities and Exchange ordinance, 1969 to pay the audit bill within 7 days and inform the compliance of the directive to the Commission within next working day.
03.	M.Hossain Garments Washing and Dyeing Ltd.	Non-rectification of books of accounts of 1998-99 in line with audit report submitted by SEC appointed auditor by M. Hossain Garments Washing and Dyeing Ltd.	Directive issued under section 20A of the Securities and Exchange Ordinance, 1969 to rectify books of accounts of 1998-99 in line with audit report submitted by SEC appointed auditor within next 30 days.
04.	Bangladesh Dyeing & Finishing Industries Ltd.	It appears from the Commission’s appointed auditors’ [auditor appointed by the Commission under rule 12, sub-rule 3, as amended, of the Securities and Exchange Rules, 1987, to re-audit the financial statements of Bangladesh Dyeing & Finishing Industries Ltd. for the year ending on 31 December 2001] report that the issuer, among others, failed to keep proper books of accounts as per law, preserve appropriate and documentary evidence in support of transactions etc.	Directive issued under section 20A of the Securities and Exchange Ordinance, 1969 to Bangladesh Dyeing and Finishing Industries Ltd., to- (a) keep proper books of accounts required as per the Companies Act, 1994; and (b) preserve appropriate documentary evidence in support of transactions; (c) make good the loss suffered due to transactions with related companies and also use of company’s assets and resources by the related companies; and (d) submit a report to the Commission within 31 December 2003 after compliance with the requirements listed at (a) through (c) above, certified by the auditor appointed by the Commission.
05	Bangladesh Zipper Industries Ltd.	It appears from the Commission’s appointed auditor’s [auditor appointed by the Commission under rule 12, sub-rule 3, as amended, of the Securities and Exchange Rules, 1987, to re-audit the financial statements of Bangladesh Zipper Industries Ltd. for the year ending on 30 June 2001] report, among others, that the issuer – (i) did not maintain proper books of accounts required to reflect its state of affairs and to substantiate its expenditures; (ii) did not produce sufficient and appropriate audit evidence to the auditor for audit; (iii) has suffered huge financial loss due to unexplained bank transactions with its sister concerns and huge quantity of sales to sister concerns etc.	Directive issued under section 20A of the Securities and Exchange Ordinance, 1969 to the Bangladesh Zipper Industries Ltd., to rectify its books of accounts within 31 December 2003 in the light of the audit report mentioned above and also to make good the loss suffered due to huge inter company transactions, up to the satisfaction of the auditor appointed by the Commission.
06.	The City Bank Limited	Alleged contravention of the condition (a) of the Commission’s Notification No. SEC/SRMI/2000-953/1950 dated 24^th October 2000, gazette on 7^th November 2000.	Directive issued under section 20A of the Securities and Exchange Ordinance, 1969 to the managing director, members of the board of directors and management authority related therewith of the City Bank Limited to take appropriate and necessary measures to hold the pending AGM by 31 December 2003.

(F) Merchant Bankers

Sl. No.	Name of the Merchant Bank	Nature of default/Appeal	Commission’s decision
01.	Mercantile Securities Ltd.	Contravention of the provision of rule 10 (1) and (2) and rule 33(1) (O) of the Securities and Exchange Commission (Merchant Banker and Portfolio Management) Regulations, 1996 [failure to deposit annual fees in due time] as well as failure to comply with the condition 2, 8 and 13 of the Commission’s letter Registration- 1.088/99-529 dated: 31/8/1999 by Merchant Banker Mercantile Securities Ltd.	Letter issued with warning to comply with all securities laws in future.
02.	Prime Securities and Financial Services Limited.	Non-payment of yearly fee by Merchant Bank, Prime Securities and Financial Services Limited.	License Cancelled.
03.	Prime Securities and Financial Services Limited	Review petition against Commission’s order No. SEC/Enforcement/187/2003-233 dated 20 November 2003 canceling registration certificate of Merchant Bank Prime Securities and Financial Services Limited.	Review petition accepted and cancellation order withdrawn since the Merchant Bank paid the yearly fee.

Summary of the Enforcement Action Taken for the Period July 2003 – June 2004

Nature of Enforcement Action Taken	Number of Cases
(A)Against Brokerage House
Penalized	1
License Suspension	–
Warned	4
Directives/Order Issued/Appeal rejected and Miscellaneous	4
Total	9
(B)Against Issuer Company and its Directors
Penalized	8
Directors penalized	–
Warned	25
Directives/ Order Issued/Appeal rejected and Miscellaneous	6
Total	39
(C) Merchant Bankers
Warned/Miscellaneous	3
Total	3
Total = A+B+C= (9+39+3)	51

SEC Issued Business Commencement Certificate to CDBL:

The Securities and Exchange Commission (SEC) issued business commencement certificate to Central Depository Bangladesh Limited (CDBL) on 23 December 2003.

SEC Declared Eligible Securities for Dematerialization:

The Commission, in exercise of powers conferred by Regulations 17 of the Depository (user) Regulations, 2003 through Order No.SEC/CDS/206/2003-261 dated 23^rd December 2003, has declared shares of Square Pharmaceuticals Limited listed with the stock exchanges as the eligible securities from 23rd January 2004. With this declaration, from 24 January 2004, trading of only dematerilized shares of Square Pharmaceuticals Limited will be accepted in the Dhaka and Chittagong Stock Exchange.

LEGAL SERVICES

During the financial year 2008-2009 the following notifications/orders have been issued by SEC:

Serial No		Notification/order no and Date	Regarding
1		SEC/Reg./CRC-Policy/Part-1/2004-74 Dated 16.03.2004	Directives issued to the Credit Rating Information and services Limited and Credit Rating Agency of Bangladesh Ltd. not to provide credit rating services to those listed companies in which Sponsors/ and or Directors of the above two rating companies have substantial shares.
2		SEC/CMRRCD/2001-18/281 23 March 2004	Directives issued to the stock exchanges to ensure listing of concerned companies with the exchanges within a particular period of time.
3		SEC/CMRRCD/2001-12/257 14 March 2004	Amendment to the Settlement of Stock Exchange Transactions Regulations, 1998 of the Dhaka Stock Exchange Ltd.
4		SEC/CMRRCD/2001-07/258 14 March 2004	Amendment to the Commission’s Order No. SEC/SRMID/96-01/1127 dated 2^nd October 2001 concerning the ‘Guidelines for Regulating the Share Price Movement in the Stock Exchange Trading’
5	SEC/Enquiry-Tripti/CMRRCD/2004 -131/261 16 March 2004		Concerning enquiry on Tripti Industries Ltd.
6	SEC/CMRRCD/2001-07/307 11 May 2004		Amendment to the Commission’s Order issued to the DSE and CSE concerning the ‘Guidelines for Regulating the Share Price Movement in the Stock Exchange Trading’
7	SEC/CMRRCD/2001-12/308 11 May 2004		Amendment to the Settlement of Stock Exchange Transactions Regulations, 1998 of DSE and CSE.
8	SEC/CMRRCD/2001-23/319 9 June 2004		Amendment in the Dhaka Stock Exchange Automated Trading Regulations, 1999.

Court cases:

Sl. No.	Name of the Court		Number of Cases
1	Supreme Court of Bangladesh	Appellate Division	03
		High Court Division	55
2	4^th Joint Dist. Judge Court, Dhaka.		03
3	5^th Asst. Judge Court, Dhaka.		04
4	1^st Asst. Judge Court, Dhaka		01
5	Chief Metropolitan Magistrate Court, Dhaka.		05
6	Metropolitan Session Judge Court, Dhaka.		09
7	General Certificate Court, Dhaka.		20
Total			100

1. Share Scam Cases 1996:

Out of total 15 share scam cases, two cases are now pending before the Honorable Supreme Court Appellate Division and seven cases before the High Court Division of the Honorable Supreme Court. Remaining six cases are pending before the Metropolitan Session Judge Court for trial.

2. Three certificate cases were filed under Public Demand Recovery Act against (a) Mr. M.A. Salam, Managing Director of Paragon Leather and Footwear Industries Ltd. (b) Mr. Jaglul Karim, Director, Karim Pipe Mills Ltd. and (c) Khan Md. Iqbal, Chairman and Managing Director of Sonali Paper and Board Mills Ltd. respectively on 25/4/2004, 10/06/2004 and on 24/06/2004 in the court of General Certificate Officer, Dhaka to recover the penalty imposed by the Commission.

Cases Filed During the Financial Year 2008-2009:

Subject	Number	Brief Description
Cases filed by the Commission	8	Six certificate cases filed under PDR Act for recovering penalty money. Besides this twos cases filed in the Chief Metropolitan Magistrate Court, Dhaka. due to violation of securities laws
Subject	Number	Brief Description
Cases filed against the Commission	3	Two Writ Petitions filed against orders of the Commission regarding penalty money and one criminal revision filed against the criminal case filed by the Commission in the Honorable Supreme Court High Court Division.

RESEARCH & DEVELOPMENT

Publications:

During July 2003—June 2004, Research & Development Department of the Commission published and distributed the following Reviews and Reports of the Commission:-

Annual Report (Bengali & English) : FY 2002-2003

Quarterly Review : April-June, 2003

Quarterly Review : July-September, 2003

Quarterly Review : October-December, 2003

Quarterly Review : January-March 2004

“SEC Parikrama” (SEC’s Bangla Newsletter) : June 2003

“SEC Parikrama” (SEC’s Bangla Newsletter) : September, 2003

“SEC Parikrama” (SEC’s Bangla Newsletter) : December, 2003

“SEC Parikrama” (SEC’s Bangla Newsletter) : March, 2003

Monthly activity reports of the Commission are regularly sent to the Ministry of Finance. Besides, Research and Development Department also provides other reports, statements, information etc. to different agencies, such as Bangladesh Bank, as and when required.

Investors’ Education Program:

SEC conducts Investors’ Education Program on regular basis to educate the general public about the capital market of the country. The program includes – capital market regulartory framework, and issuance, trading, payment and settlement of securities in capital market. During the FY. 2003 –2004 the programs were held in Dhaka, Chittagong, Sylhet and Khulna. Altogether 251 participants took part in these programs. SEC officials deliberated in the program. Mentionable that a decision was taken in this financial year to arrange Investors’ Education Program by SEC and ICB jointly. Accordingly, ICB and SEC jointly organized a program in Khulna.

NDC team visits SEC:

A Delegation from the National Defence College (NDC) visited SEC in May 2004. Dr. A.B Mirza Azizul islam, Chairman, SEC welcomed the team and presented an overview on capital market. Members of the Commission and senior officials were also present. Senior officials of the Commission presented papers on the various aspects of capital market. The team highly appreciated the role of SEC in developing the capital market.

FINANCIAL STATEMENTS OF THE COMMISSION

For the year ended 30 June, 2004

Securities and Exchange Commission is under the revenue budget of the Government. All of its expenditures are met from the Govt. revenue budget. In terms of section 12 of the Securities and Exchange Commission Act, 1993, the Commission maintains a fund which consists of the Govt. allocation and revenue generated by the Commission itself. Income of the Commission includes registration and renewal fees, fees received in connection with application and consent for making an issue of capital by issuer of securities, recovery of penalty etc. Govt. fund is released in accordance with the budget allocation net of the income generated by the SEC. Mentionable here that the Commission does not charge any levy on trading of the stock exchanges. To accommodate all the expenses of the Commission from its own sources it is necessary to impose levy on the transactions of securities in stock exchanges.

The Commission has generated considerable income during the last few years. It has met 41.93%, 78.30% and 31.89% of its total annual expenses from own generated income during the fiscal years 2001-2002, 2002-2003 and 2008-2009 respectively. In 2008-2009 Commission earned Tk. 1.12 crore. Thus, the Commission received total amount of Tk. 3.569 crore, including last year’s unspent balance of Tk. 1.116 crore received from the Government and Tk.1.12 crore from own sources by which the Commission has been able to meet all the expenses. On the other hand, the Commission’s total income was Tk. 2.15 crore in 2002-2003 and government allocation was Tk. 3.72 crore including previous year’s balance of Tk. 1.57 crore. The expenditure for revenue, capital and works of the Commission during the fiscal year 2008-2009 altogether stood at Tk. 3.294 crore, which was Tk. 2.604 crore in the previous fiscal year 2002-2003. An income statement of the commission for the period 2008-2009 is furnished at Annexure-1.

It is worth mentioning that income earned by the Commission includes an amount of Tk. 2,58,500 received against penalty imposed by the Commission on the issuers and market intermediaries. In terms of section 12 of the Securities and Exchange Commission Act, 1993, the said amount of money deposited in the Commission’s fund.

Statement of Affairs

June 30, 2004

Figure in crore taka

Particulars	FY 2008-2009		FY 2002-2003
Particulars	Budget allocation/ Receipt	Actual expenditure	Actual expenditure
Government Grant :	2.470
Opening balance (unspent balance received from Govt.)		1.116	1.570
Govt. grant released		1.359	–
Total Govt. grant	2.470	2.475	1.570
Commission’s miscellaneous income	0.900	1.121	2.150
Total allocation/Receipts	3.370	3.596	3.720
Payment/Expenditure
Revenue expenditure	2.762	2.326	2.276
Capital expenditure	0.428	0.223	0.160
Loan/Advance disbursed	0.180	0.145	0.168
Works expenditure		0.600	–
Total	3.370	3.294	2.604
Closing balance (unspent fund)		0.302	1.116

Annexure-1

Securities and Exchange Commission
Miscellaneous income/ receipts
Financial year 2008-2009
Sl. No.	Particulars	Amount Tk.
	Incomet
1	Stock Dealer/Broker Registration fees	2,884,600.00
2	Merchant Bank Registration fees	591,000.00
3	Mutual Fund Registration fees	180,000.00
4	Authorized Representative Registration fees	264,500.00
5	IPO, Application, Filing & Consent fees	4,399,038.35
6	Recovery of Penalty	258,500.00
7	Sale of Publication (Quarterly Review)	4,150.00
8	Sale of Tender schedule	38,050.00
9	Recovery of Notice Pay	68,385.00
10	Sale of scrap materials and old vehicle	247,350.00
11	Depository Participant Fees	925,000.00
12	CDBL Registration fees	500,000.00
13	Bank interest on deposit money	144,559.00
	Total Income	10,505,132.35
	Others Recovery t
1	Recovery of House Building loan	353,709.00
2	Recovery of Computer loan	206,356.00
3	Recovery of Motor car/Motor cycle loan	124,552.00
4	Others Receipts	15,410.00
	Total Others Receipts	700,027.00
	Gross Income/Receipts	11,205,159.35

Commission and The Commission Officers:

(As on 30^th June 2004)

Chairman and Members:

Dr. A B Mirza Azizul Islam, Chairman
Saleh Ahmed Choudhury, Member
Mohammad Ali Khan, Member
Abbas Uddin Khan FCA, Member

Officers:

Mansur Alam, Executive Director, Capital Market Regulatory Reform and Compliance and

Research & Development

Mohammad Abdul Hannan Zoarder, Executive Director, Corporate Finance
Md. Anwarul Kabir Bhuiyan, Executive Director, Administration, Finance and Registration
Farhad Ahmed, Executive Director, Enforcement and CDS
Ruksana Chowdhury, Executive Director, Initial Public Offering (IPO)
Shuvra Kanti Chowdhury, Director, Supervision & Regulation of Markets and Intermediaries
ATM Tariquzzaman, Director, Surveillance
Sirajul Huq,Director, Enforcement
Md. Ashraful Islam, Director, MIS
Md. Mizanur Rahman, Director, Legal Services
Md. Anowarul Islam, Director, Registration
Md. Saifur Rahman, Deputy Director, Registration
Md. Izaz Mansur, Deputy Director, Supervision & Regulation of Markets and Intermediaries
A. K. M. Ziaul Hasan Khan, Deputy Director, Corporate Finance
M. Hasan Mahmud, Deputy Director, Corporate Finance
Mahbubul Alam, Deputy Director, Administration
Mahbuber Rahman Chowdhury, Deputy Director, Legal Services
Kamrul Anam Khan, Deputy Director, Initial Public Offering (IPO)
Md.Rezaul Karim, , Deputy Director, Surveillance and Finance
Md. Shafiul Azam, Deputy Director, Research & Development
Farhana Faruqui, Officer on Special Assignment, Office Of the Chairman and Administration