Syed Kamal Uddin (Suman) Suman_bd01@yahoo.com

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

INTERNSHIP REPORT ON HUMAN RESOURCE PROCESS OF DHAKA STOCK EXCHANGE LIMITEDSupervisor:Professor M. Shahjahan Mina Advisor Faculty of Business and Economics Daffodil International UniversityPrepared by:Syed Kamal Uddin ID # 053-11-978 BBA (12th Batch) Major in Finance Faculty of Business & Economics Daffodil International UniversityDaffodil International UniversitySeptember 09, 2009

Letter of Transmittal23th February 2009To Professor M. Shahjahan Mina Advisor Faculty of Business and Economics Daffodil International UniversitySubject: Submission of Internship Report.Dear Sir With proper honor I would like to state that I have completed the Internship Report assigned by you named Human Resource Process of Dhaka Stock ExchangeLtd. I have tried my best to fulfill all the requirements to make my InternshipReport according to your expectation. Without the sincere co-operation and proper guidance of you, it is not possible for me to prepare the report. For this actof kindness I am grateful to you. So, I would like to request you to accept myInternship Report that is enclosed with this application for your kind consideration.Sincerely yoursSyed Kamal Uddin ID # 053-11-978 BBA (12th Batch) Major in Finance Faculty of Business & Economics Daffodil International University

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

Professor M. Shahjahan Mina Advisor Faculty of Business and Economics DaffodUniversity Date

19th February 2009Letter of AuthorizationThis is to certify that Mr. Syed Kamal Uddin has been doing Internship Program in Dhaka Stock Exchange Ltd under Human Resources Department. from 3 rd May 2009.He has been doing BBA from Faculty of Business and Economics, Department of Business Administration, Daffodil International University. Internship is a part of his BBA program. We have tried our best to provide him all the assistance to complete his internship as a part of his BBA. I hope that the report of Mr. Syed Kamal Uddin will be effective for anybody and any organization to get proper knowledge about the Human Resources Management. I wish him all the success in his life.Ms. Hosne Ara Pervin Assistant General Manger HRM, Administration & Training Affairs Dhaka Stock Exchange Limited.

DECLARATIONI do hereby solemnly declare that the work presented in this Internship Report has been carried out by me and has not been previously submitted to any other University/College/Organization for an academic qualification/certificate/diploma or degree. The work I have presented does not breach any existing copyright and no portion of this report is copied from any work done earlier for a degree or otherwise. I further undertake to identify the Department against any loss or damage arising from breach of the foregoing obligations.

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

PrefaceInternship in BBA program is a scope of gathering practical knowledge on corporate environment by engaging in an organization for a certain period. This reporton is the result of a survey that is conducted during the internship period in DSE. Several Multinational stock exchanges are operating their activities since long time. They are playing a very important role in enhancing the quality of thestock exchange service in the country. Basically these multinational stock exchanges are providing services to the local and Govt. stock exchange of our country regarding foreign trade transaction. In quality maintenance, stock exchange plays an important role. A good harmony between foreign and local stock exchange can ensure a quality service in international trade service. The position of themultinational stock exchange in this market gives us a view about their performance and overall market condition. In this report, an attempt has been made to portray a picture on market condition and service quality of institutional stock exchange organizations in our country.I

ACKNOWLEDGEMENTInternship program in Dhaka Stock Exchange Ltd. has given me practical orientations with the real work life. One individual without the help of others can complete no work. In every step of this study many individuals and institutional experts supported me. It gives me an immense pleasure to acknowledge them with my gratitude. First of all, I want to express my heartfelt gratitude to Almighty Allah without whose help it would not have been possible for me to prepare this paper. I would like to express my deep sense of gratitude to all those who are always a source of inspiration for their involvement, unconditional cooperation and support in all my academic endeavors. Without their encouragement, I could not stand in pride as having done some academic work. I am indebted to all of them. Itwould be unthinkable to prepare such a paper and present it in a lucid manner without the help of my supervisor Professor M. Shahjahan Mina, Advisor, DaffodilInternational University. I would like to extent my gratitude to Ms. Hosne Ara Pervin, AGM, HRM, Administration & Training Affairs, Dhaka Stock Exchange Ltd, for her kind advice and suggestions. Then I would like to thanks Md. Saiful Islam,Executive, HRM, Administration & Training Affairs and Mr. Mohammad Ebna Reaz, Executive Officer, Merchant Banking Division, South East Bank Ltd. and all superior, subordinate and colleague of Dhaka Stock Exchange Ltd. for their advice and supp ort and also the classmates of BBA, Daffodil International University who made it easy for me to complete university life. I would like to express my gratitude to Research, Development & Information, Public Relations & Publications Department, Monitoring, Investigation & Compliance, Market Operation, and other personnel of for their cooperation to make this report effective.I would like to thank all those who contributed through their comments and suggestions to prepare this paper in a comprehensive manner. In order to prepare thispaper I tried to devote my best effort and knowledge at a great extent. I beg pardon to my supervisor for my unintentional error, if any. Finally I would liketo thank my family for their support and help during the entire tenure of BBA. II

EXECUTIVE SUMMARYIt gives me immense pleasure that during internship period, as part of the BBA program. The internship report is prepared with respect to the two months internship program in Dhaka Stock Exchange Ltd. The internship program helped me a lotto learn about the practical environment and situation of a financial institution and also make up a bridge between the theoretical and practical aspects and also to implement my theoretical knowledge in to the practical and realistic workenvironment.This report is composed of six chapters, which are further divided into different parts. In the first chapter the introductory portion has been presented alongwith background of the study, benefit of study and the objective of the study and the methodology, limitation and an overview of DSE, has been discussed in chapter two. Chapter three deals with the capital markets, primary market, secondarymarket, securities and exchange commission, functions of capital market, surveillance of DSE, instrument available in the capital market, share categorization:A, B, G, Z & N, total listed company, and Central Depository Bangladesh Limited(CDBL).In Chapter four, discussed responsibilities of HR, admin & training affairs department, routine tasks, training activities, disciplinary procedure, employee benefits and HR policy for DSE employee. In chapter five, I have highlighted the recruitment and selection process of DSE. In chapter six, I have highlighted the,findings recommendation and conclusion, which includes details. I tried to bridge up all the findings based on analysis and discussions. While preparing the report I always tried my best level to make it authentic and at the same time easily understandable. For this, I came up with a number of reference books and journals to get the theoretical backup. In spite of my heart and soul effort there may be some mistakes and unforeseen errors, which may arise due to my naive or inexperience state.III

The practical activities of different desks what I have done is outlined in thisreport. Various rules and regulations, policies and procedures relating to different activities have also been enumerated hereDSE has lots of scope to improve in this market as they have some competitive advantages as a worlds one of the largest Stock exchange .It has number of branchesaround the Bangladesh. Which can play an important role to create a positive impression in the market.IV

CONTENTSParticulars PrefaceAcknowledgement Executive SummaryPage # III IIIChapter One: Introductory Part1.1 Introduction 1.2 Origin of the Study 1.3 Background of the study 1.4 Statement of the Problem 1.5 Objectives of the Study 1.5.1 Broad Objective 1.5.2 Specific objectives 1. 6 Benefit Of The Study 1.7 Methodology 1.8 Limitations1-62 2 2 3 3 4 4 4 5 6Chapter Two: Overview of Dhaka Stock Exchange Limited2.1 DSE at a Glance 2.2 Preamble 2.3 History of DSE 2.3.1 DSE Tower at Nikunja 2.3.2 Vision 2.3.3 Mission 2.3.4 Objectives7-208 9 9 11 12 12 12 13 13 142.4 Legal Control- DSE As An Organization 2.5 The Major Functions Of DSE2.6 MembershipI

Particulars2.7 Policy Making Body: The Board Of Directors 2.8 DSE Management 2.8.1 DSE Board of Directors 2.9 Other Activities 2.10 Different Departments Of DSE 2.11 DSE Website 2.12 Organogram Of DSEPage #14 15 16 18 18 19 20Chapter-3: Capital Market: DSE3.1 Capital Market 3.2 Primary Market 3.3 Secondary Market 3.4 Securities And Exchange Commission 3.5 DSE Ranked Fourth Best Performing Exchange In The World 3.6 Market Development 3.7 Surveillance Of DSE 3.7.1 Price Monitoring 3.7.1.1 Investigations 3.7.1.2 Surveillance Actions 3.7.1.3 Rumor verification 3.7.2 Position Monitoring 3.8 Market Expansion 3.9 Technical Development 3.10 Global Economy3.11 Bangladesh Economy 3.12 The Global Stock Market 3.13 Bangladesh Stock Market 3.14 Market Capitalization 3.15 Instrument Available In The Capital Market21-4222 22 22 23 23 24 25 26 26 26 26 27 27 27 28 30 31 31 33 34II

Particulars3.16 Share Categorization: A, B, G, Z & N 3.17 Total Listed Company 3.17.1 Listed Sector Of DSE 3.18 Central Depository Bangladesh Limited 3.18.1 What Is A Depository?Page #35 36 41 41 42Chapter-4: Human Resources Department of DSE4.1 Present Organogram Of Human Resources Department 4.2 Responsibilities Of HRM, Admin & Training Affairs Department43-6244 45 46 46 46 46 46 47 47 48 48 48 49 49 49 49 50 50 51 52 534.3 Key Functions of HRD 4.3.1 Recruitment 4.3.2 Selection 4.3.3 Induction and Orientation 4.3.4 Training 4.3.4.1 Local Training 4.3.4.2 Overseas Training 4.3.5Placement 4.3.6 Performance Appraisal 4.3.6.1 Rewarding the Good Employees 4.3.7 Promotion: 4.3.8 Personnel Development 4.3.9 Recruitment of Intern 4.3.10 Human Rights at Work Place 4.3.11 Attendance 4.3.12 Leave 4.3.12.1 Ordinary Leave 4.3.12.2 Extra-ordinary leave 4.3.13 Submission of Annual Confidential Report (ACR)III

Particulars4.3.14 Preserve All Employees Personal File 4.3.15 Proper Implementation of DSEService Rules 4.3.16Disciplinary Procedure 4.3.17 Employee Benefits 4.3.17.1 Overtime 4.3.17.2 Festival Bonus 4.3.17.3 Employee Remuneration 4.3.17.4 Food Allowance 4.3.17.5 Special Bonus/Allowance 4.3.17.6 Increment 4.3.18 Payment of Compensation (Group Insurance) 4.3.18.1 Health Insurance 4.3.18.2 Provident Fund 4.3.18.3 Gratuity 4.3.19 TransferPage #54 54 55 57 57 57 58 59 59 59 60 60 61 61 61 624.3.20 TerminationChapter- 5: Recruitment & Selection Process Of DSE5.1 Recruitment 5.2 Sources of Recruitment 5.2.1 Recruitment process is as follows 5.3 Recruitment Procedure 5.3.1 External Recruitment 5.3.2 Media Advertisement 5.3.3 University Recruiting 5.3.4 Internet 5.3.5 Interns 5.3.6 Internal Recruitment63-7364 64 65 66 66 66 66 67 67 68IV

Particulars5.4 Selection 5.5 Selection Criteria 5.6 Categories of Criteria 5.6.1 Formal Education 5.6.2 Personal Characteristics and Personality Type 5.7 Selection Process5.7.1 Step 1: Initial Screening 5.7.2 Step 2: Completing the Application Form 5.7.3 Step 3: Employment Written Test 5.7.4 Step 4: Cognitive Ability Test 5.7.5Step 5: Employment Interview 5.7.6 Step 6: Reference & Medical Check Up 5.7.7 Step 7: Selection Decision 5.7.8 Step 8: Job Offer 5.9 Critical Aspects of Labor force of DSEPage #68 68 68 68 69 69 69 70 70 71 71 72 72 72 73Chapter- 6: Findings, Recommendations and Conclusion6.1 Findings on HRD 6.2 Staff or Personnel Planning 6.3 Lack of Forecasting of Internal and External Recruitments 6.4 Reference Checking 6.5 Equal Employment Opportunity Benefits 6.6 Absence of Diverse Workforce 7.1 Recommendations 7.2 Conclusion74-8275 76 76 77 77 77 78-81 82Bibliography:...............................................83V

CHAPTER-1Introductory Partwww.dsebd.org-1-

1.1 IntroductionBangladesh capital market is one of the smallest in Asia but the third largest in the south Asia region. It has two full-fledged automated stock exchanges namely Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) and an over-thecounter exchange operated by CSE. It also consists of a dedicated regulator, heSecurities and Exchange Commission (SEC), since, it implements rules and regulations, monitors their implications to operate and develop the capital market. Itconsists of Central Depository Bangladesh Limited (CDBL), the only Central Depository in Bangladesh that provides facilities for the settlement of transactionsof dematerialized securities in CSE and DSE.1.2 Origin Of The ReportThis paper has been prepared as partial fulfillment of the internship program ofthe BBA Program, under Daffodil International University. This report Human Resources Process of Dhaka Stock Exchange Ltd. is the output of the 3 months long internship program at Dhaka Stock Exchange Ltd., Dhaka, Bangladesh. This report hasbeen authorized by Ms. Hosne Ara Pervin, Assistant General Manager, HR, Admin &Training Affairs, Dhaka Stock Exchange Ltd and approved Professor M. ShahjahanMina, Advisor, Daffodil International University.1.3 Background Of The StudyAs a mandatory part of BBA program all the students have to undergo an internship program of three months duration in any organization with a view to acquiringpractical knowledge. Theoretical Knowledge is not enough for a business student.There is a gap between the theoretical knowledge and practical knowledge. Our internship program has been launched mainly to bridge the gap. Dhaka Stock Exchange Ltd is the largest capital market in Bangladesh. The organization offers students the perfect opportunity to gain on-the-job experience by supporting and guiding them during their internship program in many business areas. After all theyknow that todays students can be tomorrows most effic ient employees. Through internshipwww.dsebd.org-2-

students become aware of organization al culture and learn how to show professional excellence to a great extent. This learning helps them when they finally enter into practical field.1.4 Statement Of The ProblemIn the context of Bangladesh now capital market is very much become large. So itis a challenge for any employees to survive successfully in this competitive environment. In order to survive, its human resource management must be effectiveand efficient. Now a day, Human Resources Department is an integral part of anyorganization as the success or failure of an organization depends to a large extent on its human resources. It is people who make things happen finally. Other factors of production are completely useless without people. It is the responsibility of HR department to recruit the right people at the right job at the righttime. I have joined as an Intern in Dhaka Stock Exchange Ltd (DSE) and interviewed several Executives of Human Resource Department during my internship period.But while working on recruitment procedures of this organization. I have observed some limitationslike- absence of equal employment benefits, absence of diverse workforce, absence of staff planning, lack of forecasting of internal and external recruitment, absence of inter organizational communication and interpersonal skill etc. So thepurpose of my report to view and analyze the Human Resources Process of DSE, identify problems areas and recommend the ways to overcome.1.5 Objectives Of StudyIn this study I have chosen Human Resources Process of Dhaka Stock Exchange Ltdas my assignment topic. I have collected the information related to the topic through the Internet and personal interview. As a student of BBA I was encouragedto find the similarities between my learning and real world situation. So, thiscan also be considered as the objective of the paper in a broader sense.www.dsebd.org-3-

1.5.1 Broad Objective Objective of this report is to evaluate the activities ofoverall Human Resources Process of the Dhaka Stock Exchange Ltd and derive findings concentrating on problem areas. 1.5.2 Specific objectives Following specificobjectives are identified:To study and analyze Dhaka Stock Exchange Ltd., withspecial emphasis on its background, functional environment, & HRM.the organization and their HR Policies and Procedures. How does the organizationmonitor the implementation. To study and analyze the current recruitment and selection process. Detail analysis of sources of potential candidates. Derive lessons learnt during the whole process. To have an overall idea by linking the theoretical concept of hiring Process with compensation strategy To focus on the significance of doing the compensation strategy during the hiring Process in the organization To find problem areas and recommend suggestions to overcome.1.6 Benefit Of The StudyThe report provides the necessary information of the HR department and recruitment and selection process of Dhaka Stock Exchange Ltd. The information will be very helpful for the HR department to overcome the weak areas and determine necessary adjustment to increase the efficiency of HR personnel. The study especiallyfocuses on the recruitment and selection process and has a brief idea about other HR related aspects. The most likely benefits are:The study provides an insight to understand HR activities of Dhaka Stock Exchange Ltd. The study reveals theoverall guideline of a standard recruitment and selection procedurewww.dsebd.org-4-

Overvie

The study provides necessary information regarding the difficulties faced by theorganization.1.7 MethodologyThe report is prepared on the basis of overall performance of DSE. Different record, statement, Annual report has helped me preparing this report. The subject material of this report is on primary and secondary sources of data and information.Sources of informationPrimary sourceObservation of various departments. Interview of different employees. Secondary sourceAnnual report of DSE. Extensive literature search on the basis of document and publication from DSE library. Journal & publication from different local and International organization DSE Website: www.dsebd.org1.8LimitationsIts a great pleasure for me to work on this report. During preparing my report Iwill learn lots of new things, which are much related to my report materials. Ithelps us to fulfill my study, which is really needed for me. But still I face some problem for my report.Due to the time constraints its really hard for us tocollect all the data. Time is so limited and I do not have enough time to collect the data. Still I have tried our best to add more authentic information as much as possible for us. I think that my report will be helpful for those people who are interested to know about the compensation process.www.dsebd.org-5-

I have also information limitations because the people I have interviewed they did not disclose information as I needed. Moreover, they skipped much informationtechnically likeinternal and external recruitment budgeting process. 1. Improper combination among various departments. 2. Due to the lack of time I could notacquire in depth knowledge of the activities of different department perfectly and clearly. 3. Adequate book, publication and journals were not available. 4. Insufficiency of necessary information and data.www.dsebd.org-6-

CHAPTER-2Overview of Dhaka Stock Exchange Limitedwww.dsebd.org-7-

DSE New Building at Nikunja, Uttara2.1 DSE At A GlanceIncorporated as East Pakistan Stock Exchange Association Ltd.: Start of Formal Trading: Renamed as East Pakistan Stock Exchange Ltd.: Renamed as Dacca Stock Exchange Ltd.: Trading Suspended under new State Policy: Trading Resumed in Bangladesh: Starting Of All Share price Index calculation: Share price Indices calculation on basis of IFC Designed formula: Starting of Automated trading: Starting OfDSE-20 Index calculation: Starting Of DSE General Index calculation: Start of CDS through CDBL: DSE All share price Index (DSI) Re introduced: 28th April 19541956 23rd June 1962 13th May 1964 16th December 1971 16 August 1976 16th September 1986 1st November 1993 10th August 1998 January 2001 27th November 2001 24thJanuary 2004 28th March 2005www.dsebd.org-8-

2.2 PreambleThe Dhaka Stock Exchange is the prime bourse of the country. Through its nonstophighly fault-tolerate screen based automated trading system the exchange has been offering facilities for transparent and highly efficient provisions for secondary market activities of securities. The management of the Exchange is vested with the Board of Directors comprising 12 members elected from the shareholders of DSE, 12 non-elected independent Directors representing different Institutions,Chambers and Professional bodies and the CEO of the Exchange A team of qualified executives runs the overall operations of the exchange. The bourse at presentoffers trading facilities for 401 securities worth Tk. 10110.30 billion-market capitalization, which contributes 18.20% of the total GDP of the country. With anationwide coverage through branches of brokers and dealer, DSE espouse shared vision of Bangladesh business all over the country. The exchange maintains the lead in providing a launching pad for mobilizing saving of Bangladesh living homeand abroad. Besides Bangladesh, nonresident & foreign institutional investors have been showing growing interest in this market over the years.2.3 History Of DSEThe Necessity Of Establishing A Stock Exchange In The Then East Pakistan Was First Decided By The Government When, Early In 1952.It Was Learnt That The CalcuttaStock Exchange Had Prohibited The Transactions In Pakistani Shares And Securities. The Provincial Industrial Advisory Council Soon Thereafter Set Up An Organizing Committee For The Formation Of A Stock Exchange In East Pakistan. A DecisiveStep Was Taken The Second Meeting Of The Organizing Committee Held On The 13thMarch 1953. In The Cabinet Room, Eden Building, Under The Chairmanship Of Mr. A.Khaleeli, Secretary Government Of East Bengal, Commerce, Labor And Industries Department At Which Various Aspects Of The Issue Were Discussed In Detail. The Then Central Governments Proposal Regarding The Karachi Stock Exchange Opening A Branch At Dhaka. , Did Not Find Favour With The Meeting Who Felt That East Pakistanwww.dsebd.org-9-

Should Have An Independent Stock Exchange. It Was Suggested That Dhaka Narayanganj Chamber of Commerce & Industry Should Approach Its Members For Parchase Of Membership Cards At RS.2000 Each For The Proposed Stock Exchange. The Location OfThe Exchange It Was Thought Should Be Either Dhaka Narayanganj Or Chittagong. AnOrganizing Committee Was Appointed Consisting Of Leading Commercial And Industrial Personalities Of The Province With Mr. Mehdi Ispahani As The Convener In Order To Organize The Exchange. The Chamber Informed Its Members And Members Of ItsAffiliated Associations Of The Proceedings Of The Above Meeting, Requesting Them To Intimate Whether They Were Interested In Joining The Proposed Stock Exchange. This Was Followed By A Meeting, At The Chamber Of About 100 Persons Interested In The Formation Of The Exchange On 07.07.1953. The Meeting Invited 8 Gentleman To Become Promoters Of The Exchange With Mr. M Mehdi Ispahani As The ConvenerAnd Authorized Them To Draw Up The Memorandum And Article Of Association Of TheExchange And Proceed To Obtain Register Under The Companies Act.1913. The Other7 Promoters Of The Exchange Were Mr. J M Addision-Scott, Mr. Mhodammed Hanif, Mr. A C Jain, Mr. A K Khan, Mr M Shabbir Ahmed And Mr. Sakhawat Hossin. It Was Also Decided That Membership Fee Was To Be Rs.2000 And Subscription Rate At 15 PerMonth. The Exchange Was To Consist Of Not More Than 150 Members. A Meeting Of The Promoters Was Held At The Chamber On 03.09.1953 When It Was Decided To AppointOrr Dignam & Co., Solicitors To Draw Up The Memorandum And Articles Of Association Of The Stock Exchange Based On The Rules Of Stock Exchange Existing In OtherCountries And Taking Into Account Local Conditions. The 8 Promoters Incorporated The Formation As The East Pakistan Stock Exchange Association Ltd. On 28.04.1954. As Public Company. On 23.06.1962 The Name Was Revised To East Pakistan StockExchange Ltd. Again On 14.05.1964 The Name Of East Pakistan Stock Exchange Limited Was Changed To "Dhaka Stock Exchange Ltd."www.dsebd.org- 10 -

At The Time Of Incorporation The Authorized Capital Of The Exchange Was Rs. 300000 Divided Into 150 Shares. Of Rs. 2000 each and by an extra ordinary general meeting adopted at the extra ordinary general meeting held on 22.02.1964 the authorized capital of the exchange was increased to Tk. 500000 divided into 250 shares of Tk. 2000 each. The paid up capital of the exchange now stoods at Tk.460000dividend into 230 shares of Tk. 2000 each. However 35 shares out of 230 shares were issued at TK. 80,00,000 only per share of TK. 2000 with a premium of TK. 79,98,000. Although incorporated in 1954, the formal trading was started in 1956 atNarayanganj after obtaining the certificates of commencement of business. But in 1958 it was shifted to Dhaka and started functioning at the Narayangonj chamber building in Motijheel C/A. On 1.10.1957 the stock exchange purchase a land measuring 8.75 Kattah at 9F Motijheel C/A from the Government and shifted the stockExchange to its own location in 1959.2.3.1 DSE Tower At NikunjaDSE has undertaken the construction work for its Second 14-storied 3 level basement building at Nikunja with all the state of the art commercial facilities; itis expected to be a landmark building. It will be a modern building with all modern amenities. It is to be mentioned here that the Honble Prime Minister Sheikh Hasina specially allotted this piece of land reigned in 1998. Dhaka Stock Exchange took over possession of the four-bigah land on 25th November 1997 from RAJUK.Construction of DSE Tower is expected to be completed in three years. The need for construction of DSE Tower at Nikunja was felt necessary to meet the growing demand of facilities from all the parties involved with this market, which by theexisting one may not be fulfilled. As the activities of the prime bourse is expanding rapidly in the last decade, this existing premise cannot accommodate allthe facilities in its present establishment at Motijheel for which DSE appealedto the then Government for a big plot showing the justification. The Governmentwas pleased and allocated the 4 bigah land in the name of Dhaka Stock Exchange Ltd. Dhaka Stock Exchange on 30th April, 2006 signed an agreement with Development Design Consultants Ltd. for architectural and engineering consulting servicesfor construction of multi-storied DSE Tower. To mention, DSE Tower will be set up on 1.33 acres (57,600 sfts) of land. The projected building area will be 741,109www.dsebd.org- 11 -

square feet. DSE signed a contract with GBB Limited on February 28, 2007 for thefirst phase construction work of 14 storied with 3-basement DSE Tower buildingfor Taka 89.97 crore. The contractor, GBB Limited, has started the constructionwork in the month of April 2007 and the construction work is in progress and isexpected to be completed by 2010.The basement work of the DSE Tower has alreadybeen completed. By end of December 2008, 15% of the work is reported to have been completed as against target progress of 39.79% as per original program.2.3.2 VisionRegulating the market structure through proper rules and strict compliance by members. Expansion of DSE trading network to cover 504 thanas. Introduce Book Building system in Bangladesh capital market. Introducing derivative market Continuous promotion of stock investment throughout the country. Create opportunity to cross border trading with SAFE countries.Introduce Global Depository Receipts (GDR) 2.3.3 MissionTo create an efficient and transparent Market facilitating entrepreneurs to raise capital, so that it accelerates industrial growth for overall benefit of the economy of the country.2.3.4 ObjectivesDevelop a strong platform for entrepreneurs for raising capital; Provide an investment opportunity for small and large investors; Develop a transparent market ensuring investor s interest; Provide a fully automated trading system with mostmodern amenities to ensure: quick, easy, accurate transactions and easily accessible to all; Attract non-resident Bangladeshis to invest in Bangladesh stock market;www.dsebd.org- 12 -

Attract foreign institutional investors to invest in Bangladesh; Collect, preserve, disseminate data and information on stock exchange;2.4 Legal Control- DSE As An OrganizationThe Dhaka Stock Exchange Ltd is registered as a Public Limited Company. It is aself-regulatory organization and its activities are regulated by: - Articles ofAssociation - Own rules, regulations and byelaws - Companies Act 1994 - Securities and Exchange Ordinance 1969 - Securities and Exchange Rules 1987

2.5 The Major Functions Of DSEListing of Companies. (As per Listing Regulations). Providing the scrutomated trading of listed Securities. Settlement of trading. (As per Settlementof Transaction Regulations) Gifting of share / granting approval to the transaction/transfer of share outside the trading system of the exchange (As per Listing Regulations 42) Market Administration & Control. Market Surveillance. Publication of Monthly Review. Monitoring the activities of listed companies. (As per Listing Regulations). Investors grievance Cell (Disposal of complaint bye laws 1997). Investors Protection Fund (As per investor protection fund Regulations 1999)Announcement of Price sensitive or other information about listed companies2.6 MembershipThe DSE Currently has 238 members who are the shareholders of the public LimitedCompany. Membership is open to foreigners. The Securities and Exchange Commissionwww.dsebd.org- 13 -

(SEC) licenses members for conducting trading as Stock Brokers, Dealer or both all Brokerage house have been corporatized in 2006.2.7 Policy Making Body: The Board Of DirectorsThrough continuous reforms, Dhaka Stock Exchange has emerged into a modern Exchange. The day-to-day affair of the DSE is run by a highly qualified and trained executive team who works independently under polices set by the Board of Directors.The DSE Board comprises of 25 members of whom 12 are elected through direct fromthe 235 shareholders of DSE. The remaining 13 Board Members are Ex-Officio. They include 12 members representing distinguished personalities from different keyeconomic and social arena of the country. The CEO of the Exchange is also a Director of the Board.One councilor to be nominated by the ministry of Finance notbelow the rank and status of Joint Secretary. One councilor to be nominated bythe Bangladesh Bank from amongst its officers of or above the rank of General Manager. President of Institute of Chartered Accountants of Bangladesh, Ex-officioMember. President of Federation of Bangladesh Chamber of Commerce and Industry,Exofficio Member.President of Metropolitan Chamber of Commerce and Industry, Ex-officio Member.President of Dhaka Chamber of Commerce and Industry, Ex-officio Member. One councilor to be nominate by the Ministry of Commerce not below therank and status of joint Secretary as member. One councilor to be nominate by the Ministry of Law not below the rank and status of joint Secretary as member.www.dsebd.org- 14 -

One councilor to be nominate by the Ministry of Industry not below the rank andstatus of joint Secretary as member.President of Supreme Court Bar Association,Ex-officio Member.Head of the Department Finance /Economics, Dhaka2.8 DSE ManagementA highly qualified and trained team of Executive report to the CEO about the day-to-day affairs of DSE. The management team runs independently under polices setby the Board of Directors. A Chief Operating Officer, Chief Financial Officer,and Chief Technology officer assists the CEO to manage day-to-day affairs of thebourse.Chief Financial Officer & Acting CEOSatipati Moitra, M.Com, FCMAPABX : 9564601,7175705-9, Ext-107 Mobile: 01713425800 Email : mailto:satipati@dsebd.org dse@bol-online.comChief Technology OfficerA. S. M. KhairuzzamanPhone: 9564601,7175703-11, Ext-123 Email : mailto:skzaman@dsebd.org mailto:dse@bol-online.com kzaman_bd@yahoo.comGeneral Manager & SecretaryShaikh Mohammadullah, MBA (IBA), FCS Phone: 9564601,7175705-9, Ext-102 Mobile: 01713333224 Email : smullah@dsebd.org, dse@bol-online.com2.8.1 DSE Board of Directors- 15 www.dsebd.org

Name Mr. Md. Rakibur Rahman President, DSEOffice AddressRoom No - 508 , Stock Exchange Building , 9/F , Motijheel C.A., Dhaka-1000 Ph: 9551960, 9559925, PABX : 9564601, 7175705-9 Ext. 508Residence AddressNavana Villa Flat No. 201, Plot No. 10 Road No. 118 Gulshan, Dhaka Phone: 8823500, 9895837 Mobile: 01819-219396PhotographyMr. Saiful Islam Senior VicePresident, DSESuite No. 1002-3 9/E, Motijheel C/A, Dhaka-1000 Phone: 9561070, 9561232, 9564959, 9569302 Fax: 9562254, 9564991Apartment 2B, House No.16, Road No. 01, Baridhara Diplomatic Zone, Dhaka-1212 Res: 8859055 Mobile : 01711-546802Mr. Md. Shakil Rizvi Vice-President, DSERoom No: 905, DSE Annex Building (8th Floor) 9/E, Motijheel C/A, Dhaka-1000 Phone: 7175716, 9570985, 7166096, 7170993-4 PABX :9564601, 7175705-9 Ext- 429Phone: Mobile: 01715864740Mr. Abdul Haque Director, DSERoom No - 618, 619, 709, 715 Stock Exchange Building 9/F, Motijheel C.A. Dhaka-1000 Phone: 9551815, 9564573,9568417 PABX : 9564601,7175705-09 Ext-715/7099/2, Bagabati Banerjee Road Hatkhola Dhaka - 1203 Mobile: 01711-537753Mr. M.A. Quayum Director, DSERoom no. 704 (6th Floor), Modhumita Building, 158-160,Motijheel C.A., Dhaka-1000. Ph: 9557677 PABX : 9557677, 7168345Road No. 104, House No. 5/F Flat No. A-4/S Gulshan -2, Dhaka - 1212 Phone: 8814385 Mobile: 0175212755Mr. Md. Hanif Bhuiya Director, DSERoom no. 620 , 621 & 635 Stock Exchange Building 9/E, Motijheel C/A, Dhaka-1000Mobile: 01713033829 Phone:9553321, 9563287,9554712 PABX :9564601, 7175705-09, Ext:620, 621, 635www.dsebd.org- 16 -

Ms. Lailun Nahar Ekram Director, DSEHouse No. - 8A, Road No. - 50, Gulshan-2, Dhaka - 1212 Phone: 9887423, 9892714 Fax: 9894877House No. 14 (5th Floor), Road No.- 140, Gulshan - 01, Dhaka - 1212 Res: 8855098Mobile: 01711-567122Mr. Masudul Haque Director, DSESuite No. - 603 (5th Floor), Modhumita Building, 158-160 Motijheel C/A, Dhaka-1000 Phone: 7174368, 7174451, 9561993116, Bashir Uddin Road, Kalabagan, Dhanmondi, Dhaka-1205 Res: 9115571, 8144836 Mobile: 01711-542131Mr. Mohammad Nasir Uddin Chowdhury Director, DSERoom No. 322 9/E, Motijheel C/A, Dhaka-l000 Phone: 9561868, 9570496, 7174256, 7174315, 9556792 Fax: 9555384, 95622074/404, Eastern Point 8-9, Shantinagar, Dhaka Res: 8354163 Mobile: 01819-213180 Email: lbsldhk@accesstel.net nasir@lbsbd.comMr. Md. Rafiqul Islam Director, DSERoom No - 901 (8ht floor) 9/E, Motijheel C/A, Dhaka-l000 Phone: 9666927,9667011PABX: 9564601 Ext-524Phone: 9341147 Mobile: 01711-526213Mr. Md. Feroz Khan Director, DSERoom No - 313 (2nd Floor) Stock Exchange Building 9/F, Motijheel C/A, Dhaka-l000Phone: 9552390,9561667 PABX: 9564601 Ext-313Phone: 8810256 Mobile: 01711-548744Mr. Md. Shahjahan Director, DSERoom No - 213 Stock Exchange Building 9/F, Motijheel C/A, Dhaka-l000 Phone: 9551403 PABX:9564601,7175705-09 Ext213Phone: 9882204 Mobile: 01711 536876www.dsebd.org- 17 -

2.9 Other ActivitiesDSE Publishes Monthly Review to keep investors community informed on the overalldevelopment in securities market. DSE also publishes a Bengali fortnightly andInformation Booklet regularly. Besides publication of a Stock Market Terminologyin both Bengali an English is in the offing.DSE has an arbitration system to resolve disputes or claims against members through a panel judges compromising 5retried districts judges. Investors Protection Fund, which is contributed by theBrokers of the Exchange for the benefits of investors and managed by s board oftrusty who are independent body from outside the Exchange.

2.10 Different Departments Of DSEInformation & Communication Technology (ICT) DivisionSystem & Market Admin WebDev & Int. trading Network Local Com Network Distance Com Application Support MIS & Developmentwww.dsebd.org- 18 -

Hardware Support Back Office Dev.Finance Divisionng DSE FSDP

General Accounts Clearing Accounts & Exchange DP Special Cleari

Administration DivisionBoard Affairs Membership Affairs HRM, Administratraining Protocol, Logistics & Maintenance Publication & Public Relations Resources & Development &Library Security Section Reception LegalOperation Division & CEOs Secretariat SurveillanceSurveillance Internal Control& Audit Monitoring, Investigation & Legal Affairs PS of CEO Listing Affairs & Market operation2.11 DSE WebsiteDSE has been introduced a data integrated website www.dsebd.org with real time market data where an investor can get basic information of all listed companies as well as associated trading information on securities arena.www.dsebd.org- 19 -

2.12 Organogram Of DSE ORGANOGRAM OF DSEBoard of Directors Internal Audit, Control & Compliance CommitteeCEO - Chief Executive OfficerCTO-Chief Technical OfficerCFO-Chief Financial OfficerCOO-Chief Operating OfficerICT Division Administration Division Finance Division Operation Division System & MarketAdmin Web Dev & Int. trading Network Local Com Network Distance Com Application Support MIS & Development Hardware Support Back Office Dev.General Accounts Clearing Accounts &Exchange DPBoard Affairs Membership Affairs HRM, Administration& TrainingDSE Clearing House& Special ClearingProtocol, Logistics &Maintenance Surveillance Internal Control &AuditDSE FSDPPublication & PublicRelation Monitoring,Investigation & Legal AffairsResearch developments&InformationSecurity Section Reception Legal PS of CEO Listing Affairs& Market operationwww.dsebd.org- 20 -

CHAPTER-3Capital Market: DSEwww.dsebd.org- 21 -

3.1 Capital Market Sources from which long-term capital is raised for the setting up and sustained growth of companies. The Stock Exchange is a part of the capital market, not only because it readily provides money for new or existing ventures, but also because it helps investors to trade in their shares and maintainsthe liquidity of investment. Investment in further public and rights issues, convertible and non-convertible debentures, there the resources they need. A marketin which long-term capital is raised by industry and commerce, the government and local authorities. The money comes from private investors, insurance companies, pension funds and bank and is usually arranged by issuing houses and merchantbanks. Stock exchanges are also part of the capital marketing that they providea market for the shares and loan stocks that represent the capital once it hasbeen raised. It is the presence and sophistication of their capital markets thatdistinguishes the industrial countries from the developing countries, in that this facility for raising industrial and commercial capital is either absent or rudimentary in the letter.3.2 Primary MarketPrimary market comprises of a market for new issue of shares, and debentures, where investors apply directly to the issuer/company for allotment & pay application money to the issuers/company account. Primary market is where a issuer /company makes its contact directly with the public at large in search of capital distinguished from the secondary market. Where investors buy /sell listed shares on the stock exchange.3.3 Secondary MarketSecondary market comprises of the buyer and seller of shares and debentures subscribed to the share or debenture of the company. If one wishes to sell the same,it will be done in the secondary market similarly one can also buy the shares or debentures of a company from the secondary market (if the company is listed onthe stock exchange) without having to wait for the company to come out with a new public issue.www.dsebd.org- 22 -

3.4 Securities And Exchange CommissionThe Securities and Exchange Commission (SEC) was established on 8 th June 1993 under the Securities and Exchange Commission Act, 1993. The Chairman and Membersof the Commission are appointed by the government and have overall responsibility to administer securities legislation. The Commission, at present has three full time members, excluding the Chairman. The Commission is a statutory body and attached to the Ministry of Finance.3.5 DSE Ranked Fourth Best Performing Exchange In The WorldWhile the global stock markets have taken a beating, the DSE has performed reasonably well. According to Bloomberg, the New York-based prestigious information services company, the DSE was the fourth best performing exchange in the world ona currencyadjusted basis in 2008. According to the 23 world indices, the DhakaStock Exchange has performed the best in comparison with the other important stock exchanges. I, therefore, congratulate all of you for the resounding success.I also congratulate the new government elected by the peoples of Bangladesh andI hope our securities market will see further growth during the tenure of the new government which assumed office on January 6,2009. The new government will hopefully stress the need for raising funds from the securities market, which willultimately help industrialization of the country as well as mobilization of internal resources. We firmly believe in teamwork and excellent loyal, efficient andmotivated team of employees is our harmonious strength. With a firm commitmentto achieve an excellence in service, DSE has always tried for creating wide array of products and offer superior value proposition. To strengthen our technological platform, we have already installed state of the art technology. The resounding success that we have achieved last year was possible because of your relentless support to the DSE. Our commitment to you for making your investment to havean ever-increasing value has made possible to reach a commendable level of success.www.dsebd.org- 23 -

Securities market as a vital sector of the national economy continues to be veryimportant particularly in the backdrop of keen competition and continuous globalisation process. We play a crucially important role in creating employment through investment.3.6 Market DevelopmentDSE continued its efforts to develop the market through taking various reforms and programmes throughout the year. Since the inception of the DSE Training Academy on September 10, 2007, many training programmes for investors, authorised representatives, seminar on Derivatives, Financial Options and Futures for DSE officials and professionals took place during the period. Apart from DSE head office, many brokers and institutional investors are arranging awareness programmes inthe newly opened Training Academy. Honorable Adviser to the Caretaker Government Dr. A.B Mirza Md. Azizul Islam inaugurated the DSE Academy aiming to help create a pro-active atmosphere in the securities market and thus build up a strong human resource for the growing market. Removing the prevailing weakness in fixedIPO Shares Pricing Method, DSE has been closely working with SEC to introduce Book-Building, alternative method of share price valuation. Under this method entrepreneurs will be encouraged to get their business ventures into the bourses asit will ensure them expected level of price of their shares. DSE as part of spreading awareness about the Book-Building method to extract time-bound opinion from the experts in Financial Markets including regulators and Academics arranged aworkshop on Book Building Method on February 17, 2008 at its Boardroom. SEC Chairman Mr. Faruq Ahmad Siddiqi was the chief guest of the function. It is assumed that after the introduction of proposed Book Building Method profitable and fundamentally sound companies will come forward to the capital market. Direct listingof Jamuna Oil Company, Meghna Petroleum Ltd, Titas Gas Transmission and Distribution Co. Ltd, ACI Formulations and Shinepukur Ceramics fulfilled the investors demand in the securities market. Of them, ACI Formulations and Shinepukur Ceramics were the first private companies to get direct listing. In another developmentDSE arranged investors awareness programme of home and abroad during the year. To attract the Non-Resident Bangladeshis investment in Australia to the countrys capital market, a DSE delegationwww.dsebd.org- 24 -

visited two major cities in Australia in April 2008. Meanwhile, DSE arranged a roundtable titled global financial crisis and its impact on financial markets in Bangladesh at Sonargaon Hotel in Dhaka on November 15,2008. Securities and Exchange Commission Chairman, Mr Faruq Ahmad Siddiqi was the chief guest in the programme while Deputy Governor of Bangladesh Bank Mr Ziaul Hasan Siddiqui was the special guest. DSE Senior Vice-president Mr Saiful Islam chaired. Mr MA Baqui Khalily, Professor of Department of Finance and Chairman of Centre for Corporate Governance and Finance Studies of Dhaka University presented a keynote paper. DSE also arranged the Second Conference of South Asian Federation of Exchanges (SAFE) during January 31 and February 01 in 2008 in Dhaka. The then Finance and PlanningAdviser, Dr. A.B Mirza Md. Azizul Islam inaugurated the 2-day conference. Whileinaugurating the programme the Finance Adviser emphasised on joint and coordinated effort for strong and vibrant securities market. Top management officials including the CEOs of member exchanges from the SAARC regions participated the conference.3.7 Surveillance Of DSEThe main objective of the Surveillance function of the Exchange is to promote market integrity in two waysBy monitoring price and volume movements (volatility) as well as by detecting potential market abuses at a nascent stage, with a view to minimizing the abilityof the market participants to influence the price of the scrip/scrips in the absence of any meaningful information.

By managing default risk by taking necessary actions timely.Market Abuse is a broad term, which includes abnormal price/volume movement, artificial transactions, false or misleading impressions, insider trading, etc. Inorder to detect aberrant behavior/ movement, it is necessary to know the normalmarket behavior - The department carries out investigation, if necessary, basedon the preliminary examination/analysis and suitable actions are taken against members involved based on the investigation.www.dsebd.org- 25 -

All the instruments traded in the market come under the Surveillance umbrella ofDSE. Surveillance activities at the Exchange are divided broadly into two majorsegmentsPrice Monitoring: Price monitoring is manly related to the price movement/ abnormal fluctuation in prices or volumes etc.

Position Monitoring: The position monitoring relates mainly to abnormal positions of members, etc. in order to manage default risk.3.7.1 Price Monitoring The functioning of the Price Monitoring is broadly divided into following activities 3.7.1.1 Investigations Conducting in-depth investigations based on preliminary enquiries/analysis made into trading of the scrip. Incase of irregularities observed, necessary actions are initiated or investigation case forwarded to SEC, if necessary through the CEO.3.7.1.2 Surveillance ActionsWarning to Members The department may issue verbal/ written warning to member/swhen a market irregularity in the scrip is suspected.

Imposition of penalty/ suspension The department, through the CEO, imposes penalty or suspend the member/s who are involved in market irregularities, based on the input/ evidence available from investigation report.3.7.1.3 Rumor verificationLiaising with Compliance Officers of companies to obtain comments of the companyon various price sensitive corporate news items appearing in selected News Papers.www.dsebd.org- 26 -

Comments received from the companies are disseminated to the market by way of online news bulletin.

Investigations based on rumor verifications are carried out, if required, to detect cases of suspected insider trading.3.7.2 Position Monitoring The Surveillance Department closely monitors outstanding exposure of members on a daily basis. For this purpose, it observes various off-line and on-line market monitoring reports. The reports are scrutinized to ascertain whether there is excessive purchase or sale position build up compared to the normal business of the member, whether there are concentrated purchases orsales, whether the purchases have been made by inactive or financially weak members and even the quality of scrips is considered to assess the quality of exposure.3.8 Market ExpansionDSE opened its office in Sylhet on March 30, 2008. SEC Chairman Mr. Faruq AhmadSiddiqi inaugurated the office. DSE is also working to open its branch offices in Khulna and Rajshahi to fulfill the demand of the investors across the country.We are in progress to establish four branch network offices in Dhaka.3.9 Technical DevelopmentConsidering recent market growth, the Automated Trading Server was upgraded twice during 2008. Firstly it was upgraded from HP NonStop S7802 to HP NonStop S7804by adding 2 CPU during March 2008 and the capacity was upgraded from 50,000 trades per day to 1,00,000 trades per day. The total Trader Ids supported by the upgraded System was 3000. This highly scalable Trading Server was further upgradedto HP NonStop S7806 by adding another two CPU on December 21, 2008. The new HPNonStop S7806 is capable to handle approximately 1,50,000 trades per day. WAN (Wide Area Network) setup was further expanded by incorporating another three vendors (Network Service Provider) along with existing three vendors. Presently morethan 165 Member firms are operating tradingwww.dsebd.org- 27 -

activities approximately from 480 remote locations of 14 districts. Two DSE Branch offices were running very smoothly at Chittagong and Sylhet. We are in progress to establish two new DSE branch offices at Khulna and Rajshahi as well as DSEnetwork branches in Dhaka. Besides providing online trade data from MDS (Marketdata server) to DSE official website, Mobile phones, ETV, etc, DSE is in process to provide DSE online trade data to many renowned national/international companies like Bloomberg, Mubasher Trades and to some of the online edition of the national print media.3.10 Global EconomyThe global financial crisis of 2008 was the worst of its kind since the Great Depression of 1930s. It became prominently visible in September, 2008 with the failure of several large United States-based financial firms. The underlying causeof the financial instability was the sub prime mortgage crisis. The financial crisis began in July 2007 (then referred to in the media as a "credit crunch" or "credit crisis"), when a loss of confidence by investors in the value of securitized ortgages in the United States resulted in a liquidity crisis. This prompteda substantial injection of capital into financial markets by the United States Federal Reserve, Bank of England and the European Central Bank. The TED (an acronym of T-Bill and Euro Dollar futures contract) spread, an indicator of perceivedcredit risk in the general economy, spiked up in July 2007, remained volatile for a year, then spiked even higher in September 2008, reaching a record 4.65% onOctober 10, 2008. In September 2008, the crisis deepened, as stock markets worldwide crashed and entered a period of high volatility, and a number of banking,mortgage and insurance company failures in the following weeks. Although Americas housing collapse is often cited as having caused the crisis, the financial system was vulnerable because of intricate and highly-leveraged financial contracts and operations. In fact, U.S. monetary policy made the cost of credit negligible, therefore, encouraging high levels of leverage, and generally a "hypertrophyof the financial sector". After affecting banking and credit in the United States, the situation evolved into a global general financial crisis verging on a systemic crisis. Domino effect, as many institutions hadwww.dsebd.org- 28 -

financial links, and also psychological contagions made it spread at the same time worldwide and to many financial and economic areas, including financial markets (stock exchanges and derivative markets notably) where it resulted into a market crash, various equity funds and hedge funds that went short of cash and hadto get rid of assets, insurance activities and pension funds, facing a recedingasset portfolio value to cover their commitments, incidences on public finance due to the bailout actions, increased volatility for Forex (e.g., currencies of Iceland, various Eastern Europe and Latin American countries). The Economic crisis of 2008 ensued also in various countries and inflicted various industries, asthe financial crisis was a factor for making borrowing and equity rising harderfor them. By September 2008, the financial crisis entered into an acute phase marked by bankruptcy of Lehman Brothers and failures of prominent American banks and efforts by the American governments to rescue distressed financial institutions, by passing the Emergency Economic Stabilization Act of 2008. Iceland almostclaimed to go bankrupt. Many financial institutions in Europe also faced the liquidity problem that they needed to raise their capital adequacy ratio. Europeangovernment infused capital into major banks to keep them afloat. As the crisis deepened, stock markets fell worldwide, and global financial regulators attemptedto coordinate efforts to contain the crisis. The US government composed a $700billion plan to purchase nonperforming collaterals and assets. However, the planwas initially vetoed by the US congress because some members rejected the ideathat the tax payers money be used to bail out the Wall Street investment bankers.The stock market plunged as a result; the US Congress amended the $700 billionbail out plan and passed the legislation. The market sentiment continued to deteriorate and the global financial system almost collapsed. While the market turned extremely pessimistic, the British government launched a 500 billion pound bail out plan aimed at injecting capital into the financial system. The British government nationalized most of the financial institutions in trouble. Many European governments followed suit, as well as the US government. Stock markets appeared to have stabilized by the end of October 2008. The year 2008 was perhaps one of the worst years after the great depression of 1930s for a global equity investor. In the first part of the year, the global credit crisis took its toll andwww.dsebd.org- 29 -

equity prices had started to fall. In the later months, when it was evident thatthe world was heading for a recession, stock prices started to plummet like a sack of potatoes. According to the Economist, the UK-based prestigious magazine, American mutual-fund assets have declined by USD 2.4tn - a fifth of their value since the start of 2008; in Britain, the drop is more than a quarter, or almostBP 130bn (USD 195bn). The value of global stock markets has shrunk by USD 30tn,or roughly half. These figures put the losses on credit-related securities, where the financial crisis bega n, into the shade. Indeed, it was a bad year for equity investors.3.11 Bangladesh EconomyBangladesh economy grew 6.2 per cent during the year 2007-08 as compared to 6.4per cent in 2006-07. The economy performed well overcoming the damage and dislocation caused by the two floods and the cyclone SIDR. Nearly all sectors contributed to the GDP growth, particularly export-oriented sectors, remittance and alsosome service sectors like transport and communications. Inflation which rose to9.8 per cent from 7.2 per cent in 2006-07, was caused mostly by the increase ininternational prices of energy, food grains and fertilizers. In FY2008, economic performance was better than expected considering the effects of natural disasters in the first half of the fiscal year and higher international commodity prices. The recovery in agriculture and services and the rebound in exports in the second half contributed to the reasonable 6.2% growth of GDP. Growth was supported by a steady flow of bank credit and a surge in workers remittances. The economyduring the year witnessed a rare achievement when the National Board of Revenue(NBR) for the first time achieved the target to earn Tk 374.79 billion as revenue. Agriculture grew at 3.6% in FY2008, after recovering from losses caused by the two floods and the cyclone in the first half of the fiscal year. The recoverywas led by a bumper boro (harvested in Spring) crop helped by good weather conditions and timely Government support. Potato and wheat production also fared well. Industry sector growth in FY2008 declined to 6.9% from 8.4% in FY2007.www.dsebd.org- 30 -

3.12 The Global Stock MarketMSCI International Equity Indices are the most widely used global benchmarks inthe industry. They are used to benchmark more than an estimated USD 3tn in assets, by over 2,200 institutions globally and for over 90% of all international equity assets under management in the US. Calculated since 1969, the indices have become integral tools in the investment process of international investors and are used for research, in asset allocation models, to benchmark and conduct performance measurement analysis. Worldwide stock markets performed poorly. In many regions, the drop in some equity values were in excess of 50%, and all the indiceslost more than one-third of their value. Notwithstanding intermittent volatility, decline was observed in almost all major stock markets during 2007-2008. TheDow Jones composite Index and the New York Stock Exchange (NYSE) composite indexof USA witnessed decrease at the end of June 2008 as compared to those at the end of June 2007. Similar trends were observed with regard to Nikkei 225 (Tokyo,Japan) Composite Index (Kuala Lumpur) & Straits Times Index (Singapore). Only Hang Seng Index (Hong Kong) closed on high notes. South Asian stock markets also witnessed volatility, but closed on low notes. During the said period, however, general index of DSE in Bangladesh showed an increase by 39.60 percent. The following table shows the price trends in the major stock exchanges of the South Asian Region:3.13 Bangladesh Stock Market3.13 Bangladesh Stock MarketIn absolute terms, Dhaka Stock Exchange had a mixed year. In the first half of the year, the stock exchange went up significantly. This rise was due to a numberof factors. The year end for banks and other financial institutions is December. They started to declare their results in the first few months of the year. Astheir results came in, and the results were very healthy,www.dsebd.org- 31 -

these stock prices started to go up, which was reflected in the rise of the index. The role of regulation cannot be ignored here. It was expected that reforms would take place in the nonbank financial institutions, and the insurance sector,which spurred the sharp rise in prices in these sectors. The banks were alreadyexpected to give heavy stock dividends as a requirement to be compliant with Basel II. All these factors meant that the index was on the up. The second half ofthe year was a time of decline. True that the stock and cash dividends were adjusted, however, the correction in the stock prices was much larger. There is little dispute that the market had been overheated in the first six months, and a correction was long overdue. At the same time, some other factors also started toconcern the retail investors. Retail investors started to worry about the foreign portfolio investors pulling out their money as they did in Russia, India, China, and many other countries. The news coming from the developed and the developing world about the ramifications of the credit crunch and the overall downturnin the global economy exacerbated their fears. At the same time, the uncertaintyabout the political situation started to put off investors in investing money in the bourses. Also, the second half of the year celebrated two major religiousfestivals, which is generally a slag time for investors. All these factors culminated into the down turn in the second of the year. However, in the last month of the year, we find retail investors again finding interest to invest. A large part of this renewed interest can be attributed to the prudent actions of our regulators and the media. They rightly stressed that the current credit crunch in the global economy will not impact us greatly as we are not that leverage, and complex instruments do not exist here. They also rightly stressed that; the globalrecession will not affect us in a large way, as our economy is largely insulated from the negative aspects of the downturn. While the global stock markets havetaken a beating, the Dhaka and Chittagong stock exchanges have performed reasonably well. According to Bloomberg, New York- based information Services Company;the DSE was the fourth best performing exchange in the world on a currency-adjusted basis in 2008. According to the 23 indices, the Dhaka Stock Exchange has performed the best in comparison with the other important stock exchanges.www.dsebd.org- 32 -

3.14 Market CapitalizationThe total market capitalisation of thecountrys prime bourse DSE whopped to Tk 931.03 billion on June 30, 2008 as against Tk. 475.86 billion of 30th June 2007,showing a 95.66 per cent increase. MarketCapitalisation/GDP ratio as on June 30, 2008, which determines the size of a securities market compared with the total grossdomestic product in an economy in a given period of time, was still low when compared with the same with other countries. On June 30, 2008, the market capitalisation to GDP ratio rose to 19.92____________________________________per cent against 10.18 per cent on June 2007. The Month-End movement of market capitalisation is shown in the above graph.Thegraphindicatesthatmarketcapitalisation of listed securities of DSE increased significantly to Tk 931.03billion till June 30, 2008 from Tk 475.86 billion of the corresponding period ofthe previous fiscal year showing a Tk 455.17 billion rise. The market capitalization continued to rise upto December, 2008 reflecting the investors growing enthusiasm on the securities capitalization stood at Tk 1043.80 billion on December30,2008. market. The marketwww.dsebd.org- 33 -

DSE Turnover marks 230% riseDuring 2007-2008, the total annual turnover of securities at DSE stood at Tk 543.29 billion against Tk. 164.67 billion of 2006-07 registering awhopping 229.93 per cent rise. A total of 3,761.11 million shares weretransacted in the period of 2007-08 from a total volume of 1982.96 million shares in the year 2006-2007 recording a 89.68 per cent rise. In 2005-06, the volumewas 592.76 million.3.15 Instrument Available In The Capital MarketGovt.Bonds-Govt.notes and bonds.Govt. Agency debts.Municipal bonds.Corporatebonds Asset backed securities. Preference shares/preferred stock.Ordinary shares /common stocks Unit trust /close end mutual fund.Derivatives, Loan etc.www.dsebd.org- 34 -

3.16 Share Categorization: A, B, G, Z & NThe prime bourse of the country introduced Group A and Group B from July 2,2000 based on its financial strength and performance to give clear information to investors for taking informed decision. DSE has further categorized the securities by introducing Group Z which came into effect from September 26,2000. The Stock Exchange introduced another company category Group G on June 30, 2002. The categorization helps a lot the investors in choosing companies before making investment decision. N category the newest one was launched through an order of SEC on July 3,2006.Criteria of the share category is as follows:A Category Companies Companies which are regular in holding the Annual General Meetings and have declared dividend at the rate of 10 percent or more in a Calendaryear. (Mutual Funds, Debentures & Bond are being traded in this Category) B Category Companies: Companies which are regular in holding the Annual General Meetings but have failed to declare dividend at least at the rate of 10 percent in a Calendar year. Z Category Companies: Companies which have failed to hold the AnnualGeneral Meetings or failed to declare any dividend or which are not in operationcontinuously for more than six months or whose accumulated loss after adjustment of revenue reserve, if any, is negative and exceeded its paid up capital. G Category Companies: Green field Companies: Newly listed green field companies shallbe grouped under this category.www.dsebd.org- 35 -

N Category Companies: All newly listed companies except Greenfield Companies willbe placed in this category and their settlement system would be like B-CategoryCompanies.3.17 Total Listed CompanySLS FOOD & ALLIED L 154 ALPHATOBA (ALPHA TOBACCO) 155 AMAMSEAFD( AMAM SEA FOOD )156 AMCL(PRAN)( AMCL (PRAN) ) 157 APEXFOODS( APEX FOODS ) 158 BANGAS( BANGAS )159 160 161 162 163 164 BATBC( BATBC ) BDPLANT( BANGLADESH PLANTATION ) BEACHHATCH( BEACH HATCHERY LTD. ) BENGALBISC( BENGAL BISCUITS ) BIONICFOOD( BIONIC SEA FOOD ) BLTC( BLTC )BANK SL 1 ABBANK (AB BANK LIMITED) 2 ALARABANK (AL-ARAFAH ISLAMI BANK) 3 BANKASIA (BANK ASIA LTD. ) BAYLEASING( BAY LEASING & 4 INVESTMENT LIMITED ) BDFINANCE (BANGLADES FINANCE AND 5 INVESTMENT CO.LTD. ) BIFC( BANGLADESH INDUSTRIAL FIN. 6CO. LTD. ) 7 BRACBANK( BRAC BANK LTD. ) 8 CITYBANK( CITY BANK ) 9 DHAKABANK( DHAKA BANK ) 10 DUTCHBANGL( DUTCH-BANGLA BANK ) 11 EBL( EASTERN BANK ) EXIMBANK( EXPORT IMPORT (EXIM) 12 BANK OF BANGLADESH ) FIDELASSET( FIDELITY ASSETS & 13 SECURITIES COMPANY LTD ) FIRSTSBANK( FIRST SECURITY ISLAMI 14 BANK LIMITED ) FLEASEINT( 1ST LEASE 15 INTERNATIONAL ) 16 ICBIBANK( ICB ISLAMIC BANK LIMITED ) 17 IDLC( IDLC FINANCE LTD. ) 18 IFIC( IFIC BANK ) ILFSL( INTERNATIONAL LEASING & 19 FINANCIAL SERV.L ) IPDC( INDUSTRIAL PROM. & DEV. CO. OF 20 BD LTD. ) 21 ISLAMIBANK(ISLAMI BANK ) ISLAMICFIN( ISLAMIC FINANCE & 22 INVESTMENT LTD. ) 23 JAMUNABANK(JAMUNA BANK LTD. ) LANKABAFIN( LANKABANGLA FINANCE 24 LTD. ) MERCANBANK( MERCANTILE BANK 25 LTD. )165 CTGVEG( CHITTAGONG VEGETABLE ) 166 DHAKAFISH( DHAKA FISHERIES ) 167 FINEFOODS( FINE FOODS LIMITED ) 168 169 170 171 FUWANGFOOD( FU WANG FOOD ) GACHIHATA( GACHIHATA AQUACULTURE ) GBJVFOOD( GERMAN BANGLA FOODS ) GEMINISEA( GEMINI SEA FOOD)172 GULFOODS( GULF FOODS ) 173 HILLPLANT( HILL PLANTATION ) 174 MEGCONMILK( MEGHNA CONDENSED MILK ) 175 MEGHNAPET( MEGHNA PET INDUSTRIES ) 176 MEGHNASHRM( MEGHNA SHRIMP ) 177 MODERNIND( MODERN INDUSTRIES ) 178 MONAFOOD( MONA FOOD )www.dsebd.org- 36 -

26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 4849 50 NATIONAL HOUSING FINANCEMIDASFIN( MIDAS FINANCING LTD. ) MTBL( MUTUAL TRUST BANK LTD. ) NBL( NBL ) NCCBANK( NCCBL ) ONEBANKLTD( ONE BANK LIMITED ) PHOENIXFIN( PHOENIX FINANCE AND INVESTMENTS LTD. ) PLFSL( PEOPLES LEASING AND FIN. SERVICES LTD. ) PREMIERBAN( THE PREMIER BANK LTD. ) PREMIERLEA( PREMIER LEASING & FINANCE LIMITED ) PRIMEBANK( PRIME BANK ) PRIMEFIN( PRIME FINANCE & INVESTMENT LTD. ) PUBALIBANK( PUBALI BANK )RUPALIBANK( RUPALI BANK ) SHAHJABANK( SHAHJALAL ISLAMI BANK LTD. ) SOCIALINV( SOCIAL INVESTMENT BANK ) SOUTHEASTB( SOUTHEAST BANK ) STANDBANKL( STANDARD BANK LIMITED ) TRUSTBANK( TRUST BANK LIMITED ) UCBL( UCBL ) ULC( UNITED LEASING ) UNIONCAP( UNION CAPITAL LIMITED ) UTTARABANK( UTTARA BANK ) UTTARAFIN( UTTARA FINANCE) FINIX FINANCE179 180 181 182 183NTC( NATIONAL TEA ) RAHIMAFOOD( RAHIMA FOOD ) RANGAFOOD( RANGAMATI FOOD ) RASPIT( RASPIT INC.(BD.) ) SHYAMPSUG( SHAYMPUR SUGAR )184 TULIPDAIRY( TULIP DAIRY & FOOD ) 185 YOUSUFLOUR( YOUSUF FLOUR ) 186 ZEALBANGLA( ZEAL BANGLA SUGAR )TANNERY INDUSTRIES APEXADELFT( APEX ADELCHI FOOTWEAR 187 LTD. ) 188 APEXTANRY( APEX TANNERY ) 189 BATASHOE( BATA SHOE ) SL 190 EXCELSHOE( EXCELSIORSHOES ) 191 LEGACYFOOT( LEGACY FOOTWEAR ) 192 LEXCO( LEXCO ) 193 PHENIXLETH( PHOENIX LEATHER) 194 SAMATALETH( SAMATA LEATHER ) PHARMACEUTICALS & CHEMICALS SL 195 ACI( ACI LIMITED. ) 196 ACIFORMULA( ACI FORMULATIONS LIMITED ) 197 ALAMINCHEM( AL-AMIN CHEMICALS ) 198 AMBEEPHA( AMBEE PHARMA ) 199 BANGLAPRO( BANGLA PROCESS ) 200 201 202 203 BCIL( BCIL ) BXPHARMA( BEXIMCO PHARMA ) BXSYNTH( BEXIMCO SYNTHETICS ) GLAXOSMITH( GLAXO SMITHKLINE )CEMENT SL 51 ARAMITCEM( ARAMIT CEMENT ) 52 CONFIDCEM( CONFIDENCE CEMENT ) HEIDELBCEM( HEIDELBERG CEMENT 53 BD. ) LAFSURCEML( LAFARGE SURMA 54 CEMENT LTD. ) 55 MEGHNACEM( MEGHNA CEMENT ) 56 MODERNCEM( MODERN CEMENT ) 57 NILOYCEM( NILOY CEMENT ) 58 PADMACEM( PADMA CEMENT ) SL ENGINEERING204 IBNSINA( THE IBN SINA ) 205 206 207 208 IMAMBUTTON( IMAM BUTTON ) KEYACOSMET( KEYA COSMETICS ) KEYADETERG( KEYA DETERGENT ) KOHINOOR( KOHINOOR CHEMICALS )209 LIBRAINFU( LIBRA INFUSIONS LIMITED ) 210 ORIONINFU( ORION INFUSION ) 211 PERFUMCHM( PERFUME CHEMICALS )www.dsebd.org- 37 -

59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81AFTABAUTO( AFTAB AUTOMOBILES ) ANWARGALV( ANWAR GALVANIZING ) ATLASBANG( ATLAS BANGLADESH ) AZIZPIPES( AZIZ PIPES ) BDAUTOCA( BD.AUTOCARS ) BDLAMPS( BANGLADESHLAMPS ) BDTHAI( BD.THAI ALUMINIUM ) BEMCO( BEMCO ) BSRMSTEEL( BSRM STEELS LIMITED ) ECABLES( EASTERN CABLES ) GOLDENSON( GOLDEN SON LTD. )212 213 214 215 216 217PETROSYNTH( PETRO SYNTHETIC ) PHARMACO( PHARMACO INTERNATIONAL ) PHARMAID( PHARMA AIDS ) RAHMANCHEM( RAHMAN CHEMICALS ) RECKITTBEN( RECKITT BENCKISER(BD.)LTD. )RENATA( RENATA LTD. ) SQURPHARMA( SQUARE PHARMACEUTICALS 218 LTD. ) 219 TBL( THERAPEUTICS ) 220 WATACHEM( WATA CHEMICALS ) SLINVESTMENT 1STBSRS( 1ST BANGLADESH SHILPA RIN KAY&QUE( KAY AND QUE ) 221 SANGSTHA M.F. ) METALEXCR( METALEX CORPORATION ) 222 1STICB( 1ST ICB M.F. ) 1STPRIMFMF(PRIME FINANCE FIRST MUTUAL MONNOJTX( MONNO JUTEX ) 223 FUND ) MONNOSTAF( MONNOJUTE STAFFLERS ) 224 2NDICB( 2ND ICB M.F. ) NPOLYMAR( NATIONAL POLYMER ) 225 3RDICB( 3RD ICB M.F. ) NTLTUBES( NATIONAL TUBES ) 226 4THICB( 4TH ICB M.F. ) OLYMPIC( OLYMPIC INDUSTRIES ) 227 5THICB( 5TH ICB M.F. ) QSMDRYCELL( QUASEM DRYCELLS )228 6THICB( 6TH ICB M.F. ) RANFOUNDRY( RANGPUR FOUNDRY ) 229 7THICB( 7TH ICB M.F. ) RENWICKJA( RENWICK JAJNESWAR ) 230 8THICB( 8TH ICB M.F. ) SALAMCRST( S. ALAM COLD ROLLED STEELS LTD. ) 231 AIMS1STMF( AIMS 1ST M.F. ) SINGERBD( SINGER BANGLADESH ) 232 GRAMEEN1( GRAMEEN MUTUAL FUND ONE ) 233 GRAMEENS2( GRAMEEN ONE : SCHEME TWO ) 234 ICB( ICB ) ICB1STNRB( ICB AMCL 1ST NRB MUTUAL 235 FUND ) ICB2NDNRB( ICB AMCL 2ND NRB MUTUAL 236 FUND ) 237 ICBAMCL1ST( ICB AMCL 1ST M.F. ) ICBISLAMIC( ICB AMCL ISLAMIC MUTUAL 238 FUND ) JUTE82 WONDERTOYS( WONDERLAND TOYS ) FUEL & POWERSLBDWELDING( BD. WELDING 83 ELECTRODES ) 84 BOC( BOC BANGLADESH ) DESCO( DHAKA ELECTRIC SUPPLY 85 COMPANY LTD. ) 86 EASTRNLUB( EASTERN LUBRICANTS ) JAMUNAOIL( JAMUNA OIL COMPANY 87 LIMITED ) MPETROLEUM( MEGHNA PETROLEUM 88 LIMITED ) 89 PADMAOIL( PADMA OIL CO. ) POWERGRID( POWER GRID COMPANY 90 OF BANGLADESH LTD. ) SUMITPOWER( SUMMIT POWER 91 LIMITED ) 92 TITASGAS( TITAS GAS TRANSMISSION &SL239 JUTESPINN( JUTE SPINNERS ) 240 NORTHERN( NORTHERN JUTE ) 241 SALEHCARPT( SALEH CARPET ) 242 SONALIANSH( SONALI AANSH )www.dsebd.org- 38 -

DIST. CO. LTD. ) SL 93 94 95 96 97 98 99 100 SL SL 243 PAPER & PRINTING AZADIPRIN( AZADI PRINTERS ) 244 HAKKANIPUL( HAKKANI PULP & PAPER ) 245 MAQENTER( MAQ ENTERPRISES ) 246 MAQPAPER( MAQ PAPER ) 247 MONOSPOOL( B.MONOSPOOL PAPER ) 248 PADMAPRINT( PADMA PRINTERS ) 249 PAPERPROC( PAPER PROCESSING ) SL SONALIPAPR( SONALIPAPER ) 250 251 TEXTILE 252 253 254 255 256 IT SECTOR AGNISYSL( AGNI SYSTEMS LTD. ) BDCOM( BDCOM ONLINE LTD. ) BDONLINE( BANGLADESH ONLINE ) DAFODILCOM( DAFFODIL COMPUTERS LTD. ) INTECH( IN TECH ONLINE LTD. ) ISNLTD( INFORMATION SERVICES NETWORK ) RASPITDATA( RASPIT DATA MANAGEMENT ) SERVICES & REAL ESTATE BDHOTELS( BANGLADESH HOTELS ) BDSERVICE( BANGLADESH SERVICES ) DBH( DELTA BRAC HOUSING FINANCE CORP. LTD. ) EHL( EASTERN HOUSING ) NHFIL( NATIONAL HOUSING FIN. AND INV. LTD. ) SAMORITA( SAMORITA HOSPITAL ) SAPORTL( SUMMIT ALLIANCE PORT LIMITED )101 AL-HAJTEX( AL-HAJ TEXTILE ) 102 ALLTEX( ALLTEX IND. LTD. ) 103 104 105 106 107 108 109 110 111 112 113 114 115 116 ANLIMAYARN( ANLIMA YARN ) APEXSPINN( APEXSPINNING. ) APEXWEAV( APEX WEAVING ) ARBEETEX( ARBEE TEXTILE ) ASHRAFTEX( ASHRAF TEXTILE ) BDDYE( BD.DYEING ) BDZIPPER( BD. ZIPPER IND. ) BEXTEX( BEXTEX LTD. )CHICTEX( CHIC TEX LTD. ) CMCKAMAL( CMC KAMAL ) DANDYDYE( DANDY DYEING ) DELTASPINN( DELTA SPINNERS LTD. ) DSHGARME( DESH GARMANTS ) DULAMIACOT( DULAMIA COTTON)CERAMICS SECTOR SL 257 BENGALFINE( BENGAL FINE CERAMIC ) 258 FUWANGCER( FU-WANGCERAMIC ) 259 MONNOCERA( MONNO CERAMIC ) SPCERAMICS( SHINEPUKUR CERAMICS 260 LIMITED ) 261 STANCERAM( STANDARD CERAMIC ) INSURANCE SL 262 AGRANINS( AGRANI INSURANCE CO. LTD. ) 263 ASIAINS( ASIA INSURANCE LIMITED ) ASIAPACINS( ASIA PACIFIC GENERAL 264 INSURANCE CO. LTD. ) 265 BGIC( BGIC ) 266 CENTRALINS( CENTRAL INSURANCE ) CITYGENINS( CITY GENERAL INSURANCE CO. 267 LTD. ) 268 269 270 271 CONTININS( CONTINENTAL INSURANCE LTD. ) DELTALIFE( DELTA LIFE INSURANCE ) EASTERNINS( EASTERN INSURANCE ) EASTLAND( EASTLAND INSURANCE ) FAREASTLIF( FAREAST ISLAMI LIFE272 INSURANCE CO. LTD. ) 273 FEDERALINS( FEDERAL INSURANCE ) 274 GLOBALINS( GLOBAL INSURANCE LTD. )117 DYNAMICTEX( DYNAMIC TEXTILE ) 118 EAGLESTAR( EAGLE STAR TEXTILE ) 119 GMGIND( GMG IND. CORP. ) 120 HRTEX( H.R.TEXTILE ) MAKSONSPIN( MAKSONS SPINNING 121 MILLS LIMITED ) 122 METROSPIN( METRO SPINNING ) 123 MHOSSAIN( M. HOSSAIN GARMENTS )124 MITATEX( MITA TEXTILE ) 125 MITHUNKNIT( MITHUN KNITTING ) 126 MODERNDYE( MODERN DYEING ) 127 MONNOFABR( MONNO FABRICS )www.dsebd.org- 39 -

128 PRIMETEX( PRIME TEXTILE ) 129 QSMSILK( QUASEM SILK ) 130 QSMTEX( QUASEM TEXTILE ) 131 132 133 134 135 136 137 138 139 140 SL 141 142 143 144 145 146 147 148149 150 151 152 153275 GREENDELT( GREEN DELTA INSURANCE ) 276 JANATAINS( JANATA INSURANCE ) 277 KARNAPHULI( KARNAPHULI INSURANCE ) MEGHNALIFE( MEGHNA LIFE INSURANCE CO. RAHIMTEXT(RAHIM TEXTILE ) 278 LTD. ) MERCINS( MERCANTILE INSURANCE CO. SAFKOSPINN( SAFKOSPINNINGS ) 279 LTD. ) SAIHAMTEX( SAIHAM TEXTILE ) 280 NATLIFEINS( NATIONAL LIFEINSURANCE ) SAJIBKNIT( SAJIB KNITWEAR ) 281 NITOLINS( NITOL INSURANCE CO. LTD.) NORTHRNINS( NORTHERN GENERAL SONARGAON( SONARGAON TEXTILES ) 282 INSURANCE COMPANY LTD. ) PARAMOUNT( PARAMOUNT INSURANCE SQUARETEXT( SQUARE TEXTILE ) 283 COMPANY LTD. ) SREEPURTEX( SREEPUR TEXTILE ) 284 PEOPLESINS( PEOPLES INSURANCE ) STYLECRAFT( STYLECRAFT LIMITED ) 285 PHENIXINS( PHOENIX INSURANCE ) TALLUSPIN( TALLU SPINNING ) 286 PIONEERINS( PIONEER INSURANCE ) POPULARLIF( POPULAR LIFE INSURANCE CO. TAMIJTEX( TAMIJUDDIN TEXTILE ) 287 LTD. ) 288 PRAGATIINS( PRAGATI INSURANCE ) MISCELLANEOUS ARAMIT( ARAMIT ) 289 PRAGATILIF( PRAGATI LIFE INSURANCE LTD.) BDLUGGAGE( BANGLADESH LUGGAGE ) 290 PRIMEINSUR( PRIME INSURANCE ) BERGERPBL(BERGER PAINTS PRIMELIFE( PRIME ISLAMI LIFE INSURANCE BANGLADESH LTD. ) 291 LTD.) PROGRESLIF( PROGRESSIVE LIFE BEXIMCO( BEXIMCO ) 292 INSURANCE CO. LTD. ) BSC(BSC ) 293 PURABIGEN( PURABI GEN. INSURANCE ) ENGINEER( THE ENGINEERS ) 294 RELIANCINS( RELIANCE INSURANCE ) REPUBLIC( REPUBLIC INSURANCE COMPANY GQBALLPEN( GQ BALL PEN ) 295 LIMITED ) HIMADRI( HIMADRI ) 296 RUPALIINS( RUPALI INSURANCE ) MIRACLEIND( MIRACLE IND. ) 297 SANDHANINS( SANDHANI LIFE INSURANCE ) SONARBAINS( SONAR BANGLA INSURANCE ROSEHEAVEN( ROSE HEAVEN BALL ) 298 LTD. ) STANDARINS( STANDARD INSURANCE SAVAREFR( SAVAR REFRACTORIES ) 299 LIMITED ) SINOBANGLA( SINOBANGLA TAKAFULINS( TAKAFUL ISLAMI INSURANCE INDUSTRIES ) 300 LIMITED ) USMANIAGL( USMANIA GLASS ) 301 UNITEDINS( UNITED INSURANCE )www.dsebd.org- 40 -

3.17.1 Listed Sector Of DSESector Number of Companies Banks Investments Engineering Food & Allied ProductsFuel & Power Jute Textile Pharmaceutical & Chem. Paper & Printing Service & RealEstate Cement IT Sector Tannery Industries Ceramic Industry Insurance Miscellaneous Total 50 18 24 33 10 4 40 26 8 7 8 7 8 5 40 13 3013.18 Central Depository Bangladesh LimitedCentral Depository Bangladesh Limited (CDBL) was incorporated as a limited company on 20th August 2000 to 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 an physical movement or endorsement of certificates and execution of transfer instruments, aswell as various other investor services including facilitation of the secondarymarket trading of treasury bills and Government bonds issued by the Bangladesh Bank.www.dsebd.org- 41 -

3.18.1 What Is A Depository?A depository is like a bank for shares instead of money. Instead of holding shares in the form of certificates, investors have accounts in the depository and are able to move securities and settle stock exchange transactions by an electronic update of their accounts. Virtually all established markets have depositoriesincluding India, Japan, Malaysia, Pakistan, Srilanka and Thailand, UK and USA. The core service of a depository is the efficient delivery, Settlement and transfer of securities through a computerized.www.dsebd.org- 42 -

CHAPTER- 4 to 5Human Resources Process Of Dhaka Stock Exchange Ltd.www.dsebd.org

CHAPTER-4Human Resources Department of Dhaka Stock Exchange Ltd.www.dsebd.org- 43 -

4.1 Present Organogram Of Human Resources DepartmentAGM (1) Head of HRManager (1)Senior Executive (1) Compensation & BenefitsSenior Executive (1) Compliance & Daily affairsExecutive (1)Executive (1)Executive (1)Executive (1)Jr. Executive (1)Office Asstt-1Sr. Office Asstt. Record Mgmt.www.dsebd.org- 44 -

4.2 Responsibilities Of HRM, Admin & Training Affairs DepartmentThe Human Resources Department was started their activities in early 2006 and there was only two employees in this Department. At this moment there are eleven employees working in this department. Day bay day these department activities areenhancing rapidly. The Human Resources Department is concerned with the selection, recruitment, training of employees, maintenance of employee database, employee leave maintenance, etc. Job Responsibilities of HRD is directly guided by theAGM.Assist to the administrative activities to GM to smooth operates for DhakaStock Exchange. To take necessary actions to make it possible for employees tocontribute to his best to the performance of the group or department To plans, organizes, coordinates, and supervises the activities of one or more functional areas within the Human Resource Department, Provides consultation and technical direction within the assigned functional areas of Human Resources including: recruitment/selection, classification /compensation, employee relations, training and organizational development, benefits, equal employment opportunity & refreshment.Monitoring attendance and tardiness policies, Leave record Notice of Absenceor Late ness, Contact with the CEO and arrange to set up the schedule of committees meeting like as Selection & Disciplinary Committee, Organogram Implementation Committee, and HR Committee.Performs other related duties as required. Maintain Supporting Papers of the following committee. A. Selection & Disciplinary Committee for Officers. B. Selection Committee for Staff of the Exchange. C. HR Management Committee. D. Organogram Committee.www.dsebd.org- 45 -

4.3 Key Functions of HRDKey functions involve following phases:4.3.1 RecruitmentBeing the first integrated Capital Market plant in the country DSE faced a greatchallenge in recruiting experienced and qualified people for the project, Basedon the skill requirement, the senior care technical staffs are being recruitedfrom abroad. They are having on overage 15 years experience of this operation and some of them having experience in commissioning green field project. Keeping in mind the commitment on the local employment and future stuff costs the companymanagement is recruiting potential Bangladeshi people.4.3.2 SelectionAfter successful recruitment an employee goes for medical test and salary negotiation. After that he/she is finally selected for DSE having completed necessaryformalities.4.3.3 Induction and OrientationInduction and orientation is concerned with new employee who is being made awareof the companys philosophy, policies, objectives as related to him, companys place in the industry or economy, The product, service performed, his/her job and per development etc. This is also involved with introducing him to the people withwhom he is to come in contact in his/her job performance, rear, subordinates and supervisor. Also familiarizing him/her with social and community studies. DSEfollows a high degree of cultural value and philosophy. Also conduct a thoroughinduction program/orientation to a newly selected employee.4.3.4 TrainingDhaka Stock Exchange Ltd conducts a rigorous training to its employees. It includes basic trade trainings, advance training etc. Training is conducted both home and abroad. As the training is conducted both home and abroad it helps both the employee and organization. Awww.dsebd.org- 46 -

well-trained employee is an asset to the organization and also employee can develop him/herself. DSE has taken a good number of steps to develop its employees.4.3.4.1Local Training

Local training can be both-Inside DSE and Outside DSE Induction/Orientation training Program falls under inside DSE training category. After joining, it is theresponsibility of the HR to conduct induction /orientation training to the newlyrecruited personnel to provide a general introduction of the company. To prepare training plan, participant s list, and training schedule for induction training - HR department does all. Inside DSE training will cover Management training.Out side DSE training means to take part in training programs offered by different training institutions/universities on different subjects. DSE follow this type of training such are;Authorized Representative Training Compliance Trainember Training Training as per requirements of department Company Secretary Training Investors Awareness Training Management Development DSE Employee Training.4.3.4.2 Overseas TrainingAfter need assessment employees who need overseas training are sent abroad. Foroverseas training. Expenses of overseas training are generally borne by DSE. Theparticular employee who has been selected for training has to sign a surety bond for specific period of time for overseas training. In the process more than 43local employees, have been sent overseas, in China, Singapore, and Malaysia onIndia or training assignments. Apart from the senior staffs on training assignments, training of the other staffs has been planned and under implantations at DSE guidelines.www.dsebd.org- 47 -

4.3.5 PlacementOnce candidate is finally selected he/she is placed to the concerned departmentfor his/her actual job. It is normally decided earlier, for which post or vacancy the candidate is selected. Employee transfer is one of the important activities of Human Resources Division.

4.3.6 Performance AppraisalIt is furnished annually. The concerned department and HR department are responsible for necessary performance appraisal .f the performance of any employee is not up to the standard than necessary corrective/disciplinary procedure is followed against that employee. 4.3.6.1 Rewarding the Good Employees Having rewards leads to increased job satisfaction. People do what they do to satisfy some need.Before they do anything they look for a payoff or rewards. The obvious reward employees get from work is in the form of salary. They expect good job performance to lead to organizational rewards, and they further seek rewards that will satisfy their individual goals or needs. Organization use rewards to motivate theiremployees. They rely on rewards to motivate job candidate s to join the organization. They certainly rely on rewards to get employees to come to work and perform effectively once they arc hired. Popular criteria that influence the distribution of rewards arc: Performance Effort Seniority Skills held Job difficulty Dicretionary timetheir salary isThe employees of DSE ate even rewarded at the end of the year, cither increased,or appreciation arc given to employeefor any outstanding performance.Effort and various facilities ate given to high post officials.www.dsebd.org- 48 -

4.3.7 Promotion:An employee may be eligible for consideration of promotion to next higher gradewhen he completes a minimum 3 years service in his existing post and if he is found suitable for promotion subject to the availability of the post. Promotion from a lower post to higher post shall be based on seniority, fitness and performance subject to fulfillment of the specified qualification for the post. No employee shall have a claim to be promotes as a right by virtue of seniority only.4.3.8 Personnel DevelopmentPersonnel development is mainly concerned with the enlarging on improving the employees capacity. This will enable him/her to successfully and more effectively handling greater responsibilities DSE looks ahead for all possible steps to develop its personnel by.Looking ahead for the growth and expansion of the individual employee. Provide training to upgrade skills and knowledge to make him/herselffit occupy higher position. Pursuance of the project Leader for Tomorrow (LFT)and motivate each employee to follow the DSE way.4.3.9 Recruitment of InternIntern is also another important part of their recruiting process. A learner whois paid an allowance or stipend during the period of work experience. All intern contracts will be prepared by HRD. The contract will specify all terms and conditions including period of internship, including remuneration, working hours, duration, supervision etc. Working hours, leave and holidays for the intern shallbe the same as it applies in case of other employees.4.3.10 Human Rights at Work PlaceDSE is very much conscious about human rights of its employees.www.dsebd.org- 49 -

Policies. DSE is very much committed to respecting and promoting human rights inits sphere of influence. This commitment has been included in our code of business conduct, which applies to the entire workforce. The group human resource policy states that the group excludes forced labor. There is no provision of childlabor also.

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

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

Use of Security Agents. To ensure security of employees the organization-employed security guards wherever is necessary. 21% of business units use armed securityforces also.4.3.11 AttendanceEmployers need their employees to report to work regularly and on time. An employee who is constantly tardy or absent disrupts the workflow, burdens co-worker with extra tasks, lowers morale, and may affect the quality of products and services. One of the HR executive is maintain the attendance either employees are come timely or not. If not then he put on L for Late; if someone is absent then A for absent; if someone have leave then CL for casual leave. If someone has late regularly then the executive is issue a letter or note for much late by the sign of AGMof HR, which may causes employee evaluation.4.3.12 LeaveLeave is earned by duty