Ashraf@Final@Thesis

Internship report

On

“Customer satisfaction through service analysis of BRAC EPL Stock Brokerage Limited”

An Internship Report Presented to the Faculty of Business Administration in Partial Fulfillment of the

Requirement for the Degree of Masters of Business Administration (MBA).

COMILLAUNIVERSITY

Department of Marketing

EMBA-1st

Batch

24th

January 2014

Executive Summary

BRAC EPL Stock Brokerage Ltd. is incorporated in share market from 2009. BESL is the top third

ranked brokerage house in DSE. It has eight branches in all over Bangladesh. One hundred Forty

Eight employees are employed in BESL.

However, this report consists of three parts. First part gives the general idea of brokerage

houses of Dhaka Stock Exchange. Basic information about BRAC EPL Stock Brokerage Limited

which services they offer how many department BRAC EPL Stock Brokerage Limited has and

activity map of all departments.

Second part discuss deeply about the BSEC, DSE, CDBL department. Which services they offer?

How they serve and which formalities have to full fill the customer to have required services.

Third Part regarding services and solutions of restructuring Brokerage business. Data from

surveys and interviews of the staff have been used to examine the knowledge level of local

clients regarding BESL services; to investigate clients' views regarding the quality and standard

of the services; that clients want and those which are actually being provided by BESL; and to

suggest ways of improving the services offered by BESL.

Various observations were found from service analysis and comparison with other competitors.

Most clients have rated BESL services as reliable, and believe BESL staffs to be responsive.

Clients claimed that BESL staffand services are easily accessible.

Table of Contents

Letter of Transmittal 4

Acknowledgement 5

Executive Summary 6

Chapter 1 1.1 Introduction

1.2 Origin of the Report 8

1.3 Objectives of the Report 9

1.4 Scope of the Report 9

1.5 Methodology of the study 9

Chapter 2 2.1 Company Profile 14

Chapter 3 3.1 Introduction to DSE 25

3.2 Legal Control of DSE 26

3.3 Function of DSE 26

Chapter 4 4.1 Introduction to BSEC 31

4.2 Missionof BSEC 32

4.3 Function of BSEC 32

Chapter 5

5.1 Overview of CDBL 33

5.2 Mission& Vision of CDBL 34

5.3 Function of CDBL 35

Chapter 6 6.1 Capital Market of Bangladesh

6.2 Problems of Capital Market in Bangladesh

6.3 The Role of ICB in the Capital Market

Chapter 7 Conclusion 42

References 42

Letter of Transmittal

January 20, 2014

Md. Abdullah Al Jamil

Assistant Professor

ComillaUniversity


Subject: Submission of Internship Report

Dear Sir,

With gracious honor, I would like to submit my Internship report. It was undoubtedly a splendid

opportunity for me to work on this subject. It has driven me positively to integrate theoretical

knowledge which will help me in practical ground.

I, appreciate this opportunity to show my profound gratitude to you for sparing your valuable

time, guidance and prompt attention as and when required for accomplishing this report.

Yours Sincerely

…………………………………………………………

Md. Ashraf Hossain Sarker

MBA Program

ID: 12010733

ComillaUniversity


Letter of acceptance

This is to certify that Md. Ashraf Hossain Sarkeris a student of MBA, Department of Marketing,

ComillaUniversity,Bearing ID No 12010733, and MBA1st

Batch. He has completed his internship

report entitled “Customer satisfaction through service analysis of BRAC EPL Stock Brokerage

Limited”. He has completed the internship under my supervision for the partial fulfillment of

the award of MBA degree.

As far, I know, he has tried his best to conduct this successfully. I think this study will help him

in the future to development of his career.

I wish his every success in life.

----------------------------

Md. Abdullah Al Jamil

Assistant Professor

ComillaUniversity


Student Declaration

I am Md. Ashraf Hossain Sarker, student of Comilla University, program MBA, Marketing

department, ID 12010733 do hereby declared that the internship report on ““Customer

satisfaction through service analysis of BRAC EPL Stock Brokerage Limited”. Is original and

benefited work done by me for partial fulfillment of the MBA degree, as a part of academic

curriculum. It has not been submitted by me before, for any other degree.

…………………………………………

Md. Ashraf Hossain Sarker

ID No: 12010733

MBA 1st batch

Marketing Department

ComillaUniversity

Acknowledgement

I am expressing my gratitude to the omnipresent and almighty Allah who helped us to complete

this report. While preparing this project I have come across different groups of people, I am

grateful to all of them.

I sincerely express gratitude to my Honorable Teacher Assistant Professor Md. Abdullah Al

Jamil, MBA Program, Department of Marketing, Faculty of business administration and

management studies, ComillaUniversity for his direct supervision, valuable advice during the

preparation of report. I am also very thankful to all my respondents to give their valuable time.

I express my gratitude and deepest appreciation to my Colleagues in BRAC EPL Stock Brokerage

Ltd. and DSE Library staffs who helped me by providing valuable suggestions and necessary

data for my analysis.

Customer satisfaction through service analysis of BRAC EPL Stock Brokerage Ltd.| 1

Chap t e r 1

Introduction


1.1 Introduction

Businesses need money to get started, and even more to expand and grow. When setting up,

entrepreneurs raise some of this from savings, friends and families, and the rest from banks. Capital

market is one of the unique characters offering to participate in the ownership of business and

establish ventures. The capital market plays various roles in an economy. It acts as an intermediary

between surplus units and deficit units of the economy and facilitates savings into investments. By

also providing liquidity of these investments, the capital market ensures optimum allocation of

resources. All these activities make it the engine for the growth of the economy.

Capital market in Bangladesh is yet to play its potential role as a vehicle for financing long term

investment. However, the hangover of an unpalatable historical past which saw a dramatic upsurge in

the second half of 1996 only to be followed by a drastic and prolonged downswing has been

successfully overcome. Discernible signs of renewed vitality have emerged. A number of actions are in

the offing to add depth to the market, increase the variety of instruments that can meet diverse

investors' preferences, further promote orderly trading, enhance professional competence of market

intermediaries and facilitate expeditious issuance of securities at reduced cost. In sum, Bangladesh

capital market is now prepared to be harnessed in the service of the country's economic

development. It is hoped that policy makers, issuers of securities, market intermediaries and

investors will all join hands in fuller realization of its potential.

This report is emphasizes the brokerage operation practice in Bangladesh and internals of brokerage

functions performed by BRB Securities Limited. As well as the role of brokerage house as an

intermediary is also considered. In this regard BRB Securities Limited has been taken as an example,

its, services, rules and regulation, and activities of various department have been discussed. However,

individual clients cannot trade (buy and sell) directly. They need to choose a broker house to trade

through authorized traders. All brokers must have access to the system (either directly or indirectly)

to settle stock exchange transactions. However, only some brokers, upon obtaining certificate of

registration from the BSEC, will become full service participants and will be able to manage accounts

on behalf of customers.

BRAC EPL Stock Brokerage Ltd. offers full-fledged international standard brokerage service for retail

and institutional clients and foreign clients. Having seat in Dhaka Stock Exchange Limited, it is

inevitable that BRAC EPL Stock Brokerage Ltd. became the trusted broker to most of the foreign, local

institutional investors and high net worth clients investing in Bangladesh and abroad. The

development of capital market has been receiving heightened attention from the policy-makers in

recent years. One explanation lies in the fundamental shift of development strategy reflected in the

nearly universal embrace of the private sector as an engine of economic growth. Capital Market now

has become a honey comb and share investment is a buzz word in all over the country. A number of

people are now involved in this sector with their handful fortune. For past a decade it has become


one of the significant concern issues from the top of the bureaucrats to the lower income citizen, as

many people’s fate depends on this sector. For this reason, development of this sector in every

aspect has been demanded. That’s why laws, rules etc. have been imposed for this concern of

development, to give a consolidated structure of this system. One of these developments is the

introduction of Broking operation and this operation is considerably well regulated by the regulatory

authority. Day by day, the brokerage operations are developing by the logic based well executable

systems with the help of available concurrent information technologies. A well regulated

infrastructure of information flow and operations are the result of the development of this broking

operation. Now, one can operate with the exchanges from remote areas without compromising the

ethics or hampering one’s interest.

BRAC EPL Stock

Brokerage Ltd. one of

the leading brokerage

institutions of the

country achieved

significant growth in all

areas of business in the

year ended, 2013. The

company's has both

retail and institutional

investors with high

standard of servicing to

them. Internal business

process is efficient that

honored it as the top

brokerage houses in the

country.


1.2 Origin of the Report

Since practical orientation is an integral part of the MBA degree requirement, I am the employee

BRAC EPL Stock Brokerage Limited and assigned by the Dept. of Business Administration, Comilla

University to BRAC EPL Stock Brokerage Limited to prepare the real life exposure of the customer

satisfaction through activities and services of the organization as a financial institution.

I am assigned in the BRAC EPL Stock Brokerage Limited and attached with Sales & IT Division and

acting as a Senior Executive. Being in the back office it is really a great opportunity to oversee the

activities with closer touch.

This report has been originated as the course requirement of the MBA program. I hope the report will

give a clear idea about the customer satisfaction through activities and services of the organization

and the present condition, prospect & future of the capital market.

1.3 Objectives of the Report

The objective of the report can be viewed in two forms:

� General Objective.

� Specific Objective.

General Objective:

The general objective of my internship is to get well acquainted with customer satisfaction through

the brokerage service of BESL.

Specific Objective:

The specific objective of the study is to get a definite idea about how brokerage houses operates and

what function it does to satisfy their customer through their service i.e. opening BO account, trading,

settlement, accounting procedure etc. Also its presence and contribution in the capital market,

prospect of the capital market etc. are some other objectives. Furthermore, the orientation is very

useful to detect whether the theoretical knowledge matches with real life scenario or not. Though the

title “Customer satisfaction through Brokerage Services of BRAC EPL Stock Brokerage Limited" very

lengthy area, the specific objectives are as follows:

1. To know the overall activities of the Brokerage house.

2. To know how BO account is maintained.

3. To learn about the whole trading process of BRAC EPL Stock Brokerage Limited.

4. To know the decision making process of the organization.


5. To know the present situation & growth of the capital market

6. To know about the probable benefits of derivatives, future & forward market.

7. To review the existing listing and trading rules in Stock indices in Bangladesh.

8. To know about the customer’s acceptance level regarding the recent change of BESL.

9. To know about whether the customer is satisfied with service of BESL or not. To know

about whether customer is getting more benefits from services.

10. To know about customer’s loyalty towards BRAC EPL Stock Brokerage Ltd.

1.4. Scope of the Report

I am very fortunate that I could work in various departments of the organization thereby I gathered

knowledge about the overall activities of the company. I have had an opportunity to gather

experience by working in the different desks of the branch. The area of concentration of this report is

confined in investigating different aspects of the capital market transactions, problems, prospects.

The report also covers the functions performed by the brokerage house, rules and regulations related

to it, procedure, monitoring, various analysis related to this particular arena etc.

This study is focused on the service analysis and recent trend of the capital market of Bangladesh. The

study will explain how BESL satisfy their customer to maintain the regulatory aspects of capital

market of Bangladesh on the basis of disclosed regulations and will try to judge the quality of the

regulations in terms of its achievement of the goals.

1.5. Limitations

There were some difficulties, which I have faced in preparing this report. I have worked all the

departments of ICB, DSE, CSE, and BSEC, one after another. All of the organizations are large

corporation and therefore study time three months is too short to prepare a comprehensive report

on the role of them in the Capital Market. Other constraints I have faced during the course of study

are as follows:

• Secrecy of the official’s

• Unavailability of relevant papers and documents.

• Insufficiency of necessary information.

• Relevant data sets, papers & documents were not available for me. These convey their

inability for not providing all materials.

• Our capital market is shallow & imperfect that is why various financial analyses cannot be

applied to judge the performance of ICB.


Chap t e r 2

Industry & Company Profile


2.1. Capital Market in Bangladesh

The capital market is market for securities, where companies and Governments can raise long-term

funds. It is a market in which money is lent for periods longer than a year. The capital market includes

the stock market and the bond market. Capital market is the group of interrelated markets, in which

capital in financial form is, lend or borrowed for medium and long term and, in cases such as equities,

for unspecified periods. It is encouraging to see that the capital market of Bangladesh is growing,

albeit at a slower pace than many would like, with market development still at a nascent stage. The

market has seen a lot of developments since the inception of the Securities and Exchange

Commission (SEC) in 1993. After the bubble burst of 1996, the capital market has attracted a lot more

attention, importance and awareness that have led to the infrastructure we have in the market today.

The Primary Market: The primary market deals with newly issued securities and is responsible for

generating new long-term capital.

The Secondary Market:

The secondary market handles the trading of previously-issued

securities, and must remain highly liquid in nature because

most of the securities are sold by investor.

Public Market: Only trading of market lot share is done here

through automatic matching.

Spot Market: Spot transactions are done here through automatic matching which must be settled

within 24 hours.

Block Market: A place where bulk quantities of

shares are traded through pick and fill basis.

Odd Lot Market: Odd lot scripts are traded here

based on pick and fill basis.


2.2. Dhaka Stock Exchange Limited (DSE)

Dhaka Stock Exchange (Generally known as DSE) is the

main stock exchange of Bangladesh. It is located in

Motijheel at the heart of the Dhaka city. It was

incorporated in 1954. Dhaka stock exchange is the first

stock exchange of the country. As of 31 December 2007,

the Dhaka Stock Exchange had 350 listed companies with a

combined market capitalization of $26.1 billion. It first

incorporated as East Pakistan Stock Exchange Association

Ltd in 28 April 1954 and started formal trading in 1956. It was renamed as East Pakistan Stock

Exchange Ltd in 23 June 1962. Again renamed as Dacca Stock Exchange Ltd in 13 May 1964. After the

liberation war in 1971 the trading was discontinued for five years. In 1976 trading restarted in

Bangladesh. In 16 September 1986 DSE All Share Price Index was started. The formula for calculating

DSE all share price index was changed according to IFC in 1 November 1993. The automated trading

was initiated in 10 August 1998. In 1 January 2001 DSE 20 Index was started. Central Depository

System was initiated in 24 January 2004. As of November 16 2009, the benchmark index of the Dhaka

Stock Exchange (DSE) crossed 4000 points for the first time, setting another new high at 4148 points.

At present the index maintained it’s positively

throughout the session and later closed at 4,640.56

points with a gain of 55.93 points. The other two

indices - DS30 and DSES also went up by 1.57% and

1.41% respectively.

Source: www.dsebd.org


Function of DSE

The major functions are:

• Listing of Companies (As per Listing Regulations).

• Providing the screen based automated trading of listed Securities.

• Settlement of trading (As per Settlement of 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).

• Investor’s grievance Cell (Disposal of complaint bye laws 1997).

• Investors Protection Fund (As per investor protection fund Regulations 1999).

• Announcement of Price sensitive or other information about listed companies through

online.


2.3. Chittagong Stock Exchange (CSE)

The Chittagong Stock Exchange (CSE) began its journey in 10th October of 1995 from Chittagong City

through the cry-out trading system with the promise to create a state-of-the art bourse in the

country. Founder members of the proposed Chittagong Stock

Exchange approached the Bangladesh Government in January

1995 and obtained the permission of the Securities and

Exchange Commission on February 12, 1995 for establishing the

country's second stock exchange. The Exchange comprised of

twelve Board members, presided by Mr. Amir Khosru Mahmud

Chowdhury (MP) and run by an independent secretariat from

the very first day of its inception. CSE was formally opened by

then Hon'ble Prime Minister of Bangladesh on November 4, 1995.

The Chittagong Stock Exchange believes that a dynamic,

automated, transparent stock exchange is needed in

Bangladesh. It works towards an effective, efficient and

transparent market of international standard to serve and

invest in Bangladesh in order to facilitate the competent

entrepreneurs to raise capital and accelerate industrial growth

for overall benefit of the economy and keep pace with the

global advancements.

Source: www.cse.com.bd

Objectives

• Develop a strong platform for entrepreneurs raising capital;

• Provide a fully automated trading system with most modern amenities to ensure: quick, easy,

accurate transactions and easily accessible to all;

• Undertake any business relating to the Stock Exchange, such as a clearing house, securities

depository center or similar activities;

• Develop a professional service culture through mandatory corporate membership;

• Provide an investment opportunity for small and large investors;

• Attract non-resident Bangladeshis to invest in Bangladesh stock market;

• Collect preserve and disseminate data and information on stock exchange;

• Develop a research cell for analyzing status of the market and economy.


2.4. Bangladesh Securities and Exchange Commission (BSEC)

The Bangladesh Securities and Exchange Commission (BSEC) was

established on 8th June, 1993. Earlier its name was Securities

and Exchange Commission. Through an amendment of the

Securities and Exchange Commission Act, 1993, on 10 December

2012, its name has been changed as Bangladesh Securities and

Exchange Commission. The Chairman and Commissioners of the

Commission are appointed by the government and have overall

responsibility to formulate securities legislation and administer

as well.. The Commission is a statutory body and attached to the Ministry of Finance.

The Securities and Exchange Commission exercises powers under the Securities and Exchange

Commission Act 1993. It regulates institutions engaged in capital market activities. Bangladesh Bank

exercises powers under the Financial Institutions Act 1993 and regulates institutions engaged in

financing activities including leasing companies and venture capital markets.

Bangladesh 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-the counter exchange operated by

CSE.

It also consists of a dedicated regulator, the Securities and Exchange

Commission (SEC), since, it implements rules and regulations, monitors

their implications to operate and develop the capital market. It

consists of Central Depository Bangladesh Limited (CDBL), the only

Central Depository in Bangladesh that provides facilities for the

settlement of transactions of dematerialized securities in CSE and DSE.

The DSE market capitalization surged to 27.54 billion U.S. dollars. The market capitalization increased

to 30.95 percent of GDP in 2009 from 19.26 percent in 2008. The total amount of turnover in 2009

stood at over 1,475 billion taka with 120 percent rise from that in 2008. Bangladesh Bank (BB)

adjusted its monetary policy stance during 2005 in order to contain inflationary pressures and

facilitate stability in the foreign exchange market. At the end of 2005, interest rates on NSD

certificates (government borrowing instruments from the non-bank public) were also adjusted

upward. The latter development, however, raised some concern among different economic agents

regarding its possible impact on the country’s capital market. One recent study by Ahmed et. al.

(2006) for Bangladesh found that contraction monetary policy shock, measured by increases in short

term policy interest rates have small, negative and short lived effect on the stock price index. In this

paper we attempt to closely inspect the evolvement of monetary policy and capital market indicators

in recent years and their possible interrelationship to shed some light on the issue. We focus our


analysis on the period, January ’02 to December ’06. Data on capital market indicators are collected

from monthly reviews of Dhaka Stock Exchange (DSE), while

interest rates and Treasury bills data are taken from various

Bangladesh Bank’s sources.In a modern monetary system central

banks have control over very short term (overnight) or short term

(covering several months) interest rates; long term (1-year or

more) interest rates, however, are determined by inflation

expectations and real activities.1 Relationship between monetary

policy and stock prices can be understood within the stock price

valuation model. When central bank raises the interest rates on monetary policy instruments,

expected return on alternative assets (other than equity) rise, reducing the present discounted value

of future cash flow or price of stocks.

The rest of this paper is organized as follows. Section 2 provides a brief discussion on recent changes

in monetary policy stance while Section 3 discusses the changes in yields and stock of Government T-

bills and NSD certificates. Section 4 provides a review of recent development in the capital market. A

parallel analysis is conducted in Section 5 and finally, Section 6 concludes the paper

The Commission's main functions

• Regulating the business of the Stock Exchanges or any other securities market.

• Registering and regulating the business of stock-brokers, sub-brokers, share transfer

agents, merchant bankers and managers of issues, trustee of trust deeds, registrar of an

issue, underwriters, portfolio managers, investment advisers and other intermediaries in

the securities market.

• Registering, monitoring and regulating of collective investment scheme including all forms

of mutual funds.

• Monitoring and regulating all authorized self regulatory organizations in the securities

market.

• Prohibiting fraudulent and unfair trade practices relating to securities trading in any

securities market.

• Promoting investors’ education and providing training for intermediaries of the securities

market.

• Prohibiting insider trading in securities.

• Regulating the substantial acquisition of shares and take-over of companies.

• Undertaking investigation and inspection, inquiries and audit of any issuer or dealer of

securities, the Stock Exchanges and intermediaries and any self-regulatory organization in

the securities market.

• Conducting research and publishing information.


2.5. Company Profile:

BRAC EPL Stock Brokerage Limited is one of the leading stock brokers in

the country. The company offers brokerage services to international

institutions, domestic institutions, retail clients

and non-resident Bangladeshis (NRBs).It is also the

pioneer and leader in facilitating foreign portfolio

investments in Bangladesh and boasts one of the

best Equity Research teams of the country.

Previously known as Equity Partners Securities

Limited (EPSL), the company was formed in early

2000 as a brokerage house licensed by the

Securities and Exchange Commission of

Bangladesh.

In August 2009, BRAC Bank limited acquired 51% of its equity and renamed the company as BRAC EPL

Stock Brokerage Limited. BRAC EPL Stock Brokerage Limited has membership at both of the country's

stock exchanges; the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE). Presently

there are 8 branches, of which three are located in Dhaka, one in Chittagong, one in Comilla and one

in Chowmuhani, and one in Sylhet. BRAC EPL STOCK BROKERAGE LTD. plans to open one branch in

Bogra.

BRAC EPL STOCK BROKERAGE LTD. is one of

the first full-service brokerage companies in

Bangladesh. On top of our expertise and

achievements, we take pride in our strong

commitment toward the development of

the Bangladesh capital markets. We have

unwavering faith in the potential of

Bangladesh. We also believe that an

efficient, vibrant and transparent capital

market can strongly contributes to the

overall development of Bangladesh.

Bangladesh is currently at the initial stage of

capital market growth, and we are committed to assist the entry of early movers into a growth-

oriented, vibrant, nascent emerging market.

This report provides a detailed summary of the customer satisfaction through service analysis of BESL.

BESL is a subsidiary of BRAC Bank Ltd. and shares many of the same fundamentals in its business


operations. Initially we have reported mostly on the corporate head office in terms of environmental

aspects as data was not available for the regional offices of BESL. We plan to implement data

collection and monitoring mechanisms at other offices to include in the next reporting cycle. In our

first report we have attempted to identify all range of materials covering

aspects of economic, social, and environmental impacts to assess our existing operating standard.

This has also helped us recognize the overlooked factors that we may not be measuring or

monitoring. We are already in the process of implementing monitoring tools to address these issues.

BESL plans to extend the boundary to cover the value chain both upstream and downstream

eventually.

Vision:

To be the trusted broker of choice for all investors

by offering unrivaled level of investment expertise

and customer service.

Mission:

We strive to develop a sustainable growth model

that will guide us to market leadership through

advanced technology and superior client service.

We aim to create a highly visible brand by

developing a diverse talent pool and synergy

within the group.

Sponsors:

BRAC Bank Limited is one of the fastest growing

banks in Bangladesh. A member of BRAC Enterprises, the Bank operates under a "double bottom line"

agenda where profit and social responsibility go together as it strives towards a poverty-free,

enlightened Bangladesh. BRAC Bank focuses on pursuing unexplored market niches in the Small and

Medium Enterprise Business, which has remained largely untapped. Since inception in July 2001, the

Bank's footprint has grown to 100 outlets (branches, SME Service Centers), 429 SME unit offices and

300 ATM sites across the country. Its customer base has expanded to include more than 500,000

deposit accounts and 187,000 advance accounts till December 2008. In the years ahead BRAC Bank

expects to introduce many new services and products as well as add a wider network of SME unit

offices, Retail Branches and ATMs across the country.


Location of organization’s headquarters:

BRAC EPL Stock Brokerage Limited (Corporate Head Office)

House# 18 Road#123

Gulshan, Dhaka 1212

Phone: + 88 02 8819421-5

Fax: +88 02 8819426-7

Location of All branches

Board of Directors

→ Mr. Muhammad A. (Rumee) Ali ………………………… Chairman

→ Mr. Saiful Islam ………………………… Vice Chairman

→ Mr. Syed Mahbubur Rahman ………………………… Director

→ Mr. Mohammad Mamdudur Rashid ………………………… Director

The Management

→ Mr. Mohammed Rahmat Pasha: Chief Executive Officer

→ Mr. Mizanur Rahman Chowdhury: Chief Operating Officer

→ Ms. Nagma Mahmood: Head of HR & Corporate Affairs

→ Ms. Suraiya Zerin ACA : Head of Finance & Company Secretary

→ Ms. Tania Sharmin: Head of Internal Control & Compliance

→ Mr. Syed Ashraf Us Saleheen: Head of International Trade & Sales

→ Mr. Parvez Morshed Chowdhury: Head of Strategic Sales

→ Mr. Ali Imam: Head of Equity Research Team


Departments of BESL

BESL has the following departments:

• HR & Corporate Affairs Department

• Customer Service Department

• Sales & Trade (Int. Trade & Local Trade) Department

• IT Department

• Finance & Accounts Department

• Internal Control & Compliance Department

• Settlement Department

• Research Department

• Admin Department

• Strategic Sales department.

To operate BESL efficiently every department is very important. Customer service & Settlement helps

to have an account and manage the account position hold shares of clients. Account department

manage financial account of client. In trade department clients buy and sell their share. To perform

these activities all three departments have to perform some routine task.

2.6. Literature review

What is Brokerage firm?

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

idea about broker. A broker is a person who acts as an intermediary between a purchaser and a seller

in share market this brokers are known as share broker. A brokerage house is a company licensed to

buy and sell stocks or securities. Brokerage house acting as an intermediary between buyers and

sellers. A brokerage house typically employs brokers who carry out the wishes of the firm’s clients as

they pertain to the trading of stocks. Brokerage firm completes any necessary legal paperwork,

obtains the appropriate signatures, and collects money from the purchaser to give to the seller.

Broker services are usually provided on a commission basis. Fees are variable, depending on the

degree to which the brokerage is involved in decisions about purchase. Some stockowners give their

brokers power of attorney to make decisions about when to buy or sell stock and depend upon their

brokers for researching new stock for purchase. According to Wikipedia “A broker who also acts as a

seller or as a buyer becomes a principal party to the deal. Distinguish agent: one who acts on behalf

of a principal.”


• According to Wikipedia, “A stock broker or stockbroker is a regulated professional who buys

and sells shares and other securities through market makers or Agency Only Firms on behalf of

investors.”

• According to Investor Word “An individual or firm who acts as an intermediary between a

buyer and seller, usually charges a commission. For securities and most other products, a

license is required.”

• According to Oxford Dictionary of Business (third edition) “An agent who buys and sells

securities on a stock exchange on behalf of clients and receives remuneration for this service

in the form of a commission.

Key Aspects of Brokerage

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

Trader: They are main buyer and seller of share. Broker houses earn their commission by

buying and selling stock of trader.

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

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

Broker: People, who work for brokerage houses, help to trader to buy or sale there stocks to

earn commission are known as broker.

Acting as a principal: Stockbrokers also sometimes or exclusively trade on their own behalf, as

a principal, speculating that a share or other financial instrument will increase or decline in

price. In such cases the term broker makes little sense and the individuals or firms trading in

principal capacity sometimes call themselves dealers, stock traders or simply traders.

Transactions by stock brokers: When acting as an agent, the stockbroker typically charges the

client a flat fee and/or a percentage-based commission for undertaking the trade, and the

price quoted the client must be the best price available in the market.

Types of Brokers:

There are different types of investment brokers. They range from the full service broker (which is very

costly) to the online broker (which is very cheap).

Full Service Broker: Charges the highest fees, usually has an in-house research team who

researches and recommends stocks to buy. Sometimes the stock recommendations are those


their company specializes in. This information is usually made public by the company. In a full

service firm you are given your own personal broker who receives a commission for selling you

the investment, but on the other hand they can possess valuable knowledge you do not have

access to.

Discount Broker: Gives you a discount in exchange for doing your own research. You are

usually given a list of recommended stocks to research.

Online Broker: Is the newest form of broker. Their service is run online. You are given

research, charts and investment news to research your own investments. Recommendations

of stocks to research are sometimes given. They are usually the cheapest way to purchase

investments, but you must know investment basics before you can use these services. In

Bangladesh, brokerage houses don’t follow strictly any one of above rule. Bangladeshi broker

just do trade on behalf of investor and get there commission. They give various information to

investor.

Brokerage terms

Front office: This is a description of the part of a brokerage firm that is “client facing”. The

sales staff, brokers and traders are part of the front office. Functions of the front office include

acquisition and entry of orders, fulfillment of the orders, and all the regulatory reporting for

the orders.

Back office: The back office is where the clearance processing of the trades is done. Transfer

of securities and money and the tracking of “failure to deliver” is handled. Securities lending

for a brokerage firm, wherein shares of a security that is being sold short are located to ensure

they can be delivered, is usually included in the back office as well.

Bulls: A bull is a term used in the stock exchange market to refer to a stock market optimist

who believes that share prices are likely to go higher, and who acts according to his

investment operations.

Prime brokerage: Prime brokerage is the generic name for a bundled package of services

offered by investment banks and securities firms to hedge funds and other professional

investors needing the ability to borrow securities and cash to be able to invest on a leveraged

basis and achieve an absolute return


Benefits of brokerage houses:

• Fully automated trading process which is broker independent.

• Traders have direct control over their trading portfolio.

• Investors get Real-time market data.

• Faster trade execution which is crucial in day trading.

• Low capital requirements.

• Easy to open account and easy to manage account.

• No geographical limits.

• Online trading favors active traders, who want to make quick and frequent trades, who

demand lesser commission rates and who trade in bulk on leverage.

Disadvantages of brokerage house:

• Need to fulfill specific activity and account minimums as demanded by the broker.

• Greater risk if trades are done extensively on margin.

• Monthly software usage fees,

• Chances of trading loss because of mechanical/platform failures and need of active speedy

internet connection.

• Online traders are fully responsible for their trading decisions and there will be often no

one to help them in this process.


C h a p t e r 3

Customer satisfaction through service

Company Profile


3.1. Customer satisfaction

Customer service is the service provided in support of a company’s Core Product. Customer Service

most often includes answering question, taking orders, dealing with billing issue, handling complaints,

and perhaps scheduling maintenance. Customer service can occur on site, or it can occur over the

phone or via the internet. Many companies operate Customer service call centers, often staffed

around the clock. Typically there is no charge for customer Service. Quality Customer Service is

essential to building Customer relationships. It should not, however, be confused with the service

provided for sale by a company.

The success of Customer Service is the Customer Satisfaction. It depends on the product’s actual

performance relative to a buyer’s expectations. A Customer might experience various degree of

satisfaction. If the product’s performance falls short of expectations, the Customer is satisfied. It

performance exceeds expectations; the customer is highly satisfied or delighted.

Figure: Internal customer identification of BESL (Source: www.bracepl.com)


3.2. Customer satisfaction through service analysis by BESL

A) Brokerage Service

� Local Investors: Any individual who is a Bangladeshi national above the age of 18 or any

Bangladeshi Institutions qualify as a Local Investor.

� BO A/C Opening

Bangladeshi National

• A complete set of account opening forms (pdf).

• Three copy of passport size photograph.

• Copy of bank statement.

• National ID card/Passport/Ward Commissioner's certificate/Employee ID.

• One copy of photograph of Nominee/Authorized/POA

Bangladeshi Institutions

• A complete set of account opening form (pdf).

• Copy of Memorandum and Articles of Associations.

• Copy of trade license (if any).

• Board regulations.

• Three copy of passport size photograph of authorized person.

� NRB: BESL provide Non-Resident Bangladeshi's (NRB) the option to subscribe for IPO and

trading shares in the secondary market through HSBS Bank.

� Features

The features of the product will be as follows:

• NRBs can invest into the Bangladeshi Capital Market from anywhere in the

world.

• Custodian Service will be provided by HSBS Bank.

• 100% repatriation of capital, dividend and investment profits.

• NRBs can apply for IPOs as well as buy and sell shares in the Secondary. They

can use e-mail, fax or phone to issue trade orders to BRB Securities Limited.


� Eligible criteria

All Bangladeshi nationals (Bangladeshi passport holders) who are working/living

abroad can open NITA. Foreign passport holders who are originally from Bangladesh

are also eligible to open an account.

Required documents - for new customers

The following documents will be required while opening an account:

• Completed BO account form.

• Completed BO account nominee form.

• Completed Trade account opening form (provided by Securities Company).

• Power of Attorney.

• Tripartite Agreement.

• Completed NITA account form.

• Custodian Agreement.

• A certified copy of the valid passport, valid visa.

• Four passport size photographs of the applicant.

• Proof of address (utility bill/bank statement copy etc.).

• Proof of income (such as last tax return/employment

certificate/contract/recent pay slip).

• Completed application form and duly signed signature card.

• Three copies of passport size photos of the nominee which must be

attested on the back by the primary account holder.

All the above documents must be in English (if the documents are in other language it

has to be translated to English) and also need to be verified and attested by any

reputed international bank/Bangladesh High Commission or Consulate General's

Office. If customer provides the Power of attorney (POA) from abroad, POA has to be

notarized by Notary Public and then attested by the Bangladesh High Commission or

Consulate General's Office. If customer physically comes to the branches, then

customer will provide the POA on Non-judicial Stamp (worth of BDT150.00).

� Fees and Charges

CDBL and Other Charges

• Custodian Fee: CDBL will charge BDT300.00 + (15% VAT) per annum for

maintaining BO account.

• Brokerage Commission:@ 0.45% per transaction


Other Charges

• Respective bank will charge according to their charge schedule for providing

custodial, NITA, Trade settlement and other services.

� Foreign Investors

� Investment Process Summary: Foreign investors need to fill a Customer Account

Information Form with BESL and send the form (hard copy) to the brokerage house,

duly filled and signed by authorized personnel, together with photocopy of other

required documents. They also need to open a Custodian Account with any custodian

bank in Bangladesh.

Together with BO account

opening, the custodian bank

will take care of other

account opening, such as

Cash Account (or NITA A/C),

Securities A/C and F/C

Account.

After opening the respective

accounts, foreign investors

can trade directly with BESL.

They can give buy/sale order

to BESL through email

and/or fax or through phone. Trade confirmation will be sent to the investors via email

and/or fax following execution of the order. The settlement process - transfer of share

and cash - is done mutually by BESL and the custodian bank at DVP (Delivery VS

Payment). The settlement period varies with the category of shares - (T+9) days for Z-

category shares and (T+3) days for all other categories (A, B, G and N category).

However when a stock is traded in the spot market, the settlement period is T+0 day

for all categories of share.

From BESL side, there is only one fee/charge - trade commission, set at maximum 1%

on total trade value, with prime rates applicable for prime clients. There is no account

opening fees or any other fees. Moreover foreign investors will get a number of

facilities from BESL which includes top quality research report and proprietary index

prepared and maintained by BESL Research. Foreign Investors also need to take into

account the relevant tax associated with trading in the Dhaka Stock Exchange. Foreign

individual investors only need to pay 25% tax on cash dividend, deducted at source.

The rate is 20% for institutional investors. Institutional investors are also charged with


capital gain tax - 10% is charged on profit portion only, deducted during repatriation of

money.

� Account Opening

Customer Account Information Form: Foreign investors need to fill a Customer

Account Information Form with BESL. The form is different for individual

investors and institutional investors. Foreign investors need to send the form

(hard copy) to the brokerage house, duly filled and signed by authorized

personnel. They also need to attach photocopy of other required documents

(hard copy), stated below:

For institutional investor:

• A copy of the Memorandum and Articles of Association of the company.

• A copy of the Certificate of Incorporation of the company.

• A copy of the Authorization/Board Resolution to open and operate the

account with BESL.

• A copy of the Authorization/Board Resolution authorizing the executives to

operate the account, including their photographs.

For individual investors:

• Valid passport.

• Two colored passport size photograph.

• For introduction, individual investors have to use

• Lawyers/accountant/auditor or any competent authority as Introducer.


� B/O Account Opening:

For BO account opening, foreign investors need to open a Custodian Account

with any custodian bank in Bangladesh. Previously, the foreign banks, such as

Standard Chartered Bank (SCB) & Hong Kong and Shanghai Banking

Corporation (HSBC), were providing custodian services to foreign investors.

However BRAC Bank and some of the other local banks are also providing the

same service to the investors. Together with BO account opening, the

custodian bank will take care of other account opening, such as Cash Account

(or NITA A/C), Securities A/C and F/C Account. Following is a list of custodian

banks:

• BRAC Bank Limited.

• Hong Kong and Shanghai Banking Corporation.

• Standard Chartered Bank.

� Facilities

Foreign Investors will get a number of facilities from BRB SECURITIES LIMITED.

which includes:

Research: BESL Research provides foreign investors with top quality research,

including Individual Company Research, Sectoral Report, Comparable Sheets,

Macroeconomic Report, Daily Market Update, Weekly Market review and

many more.

Management Meeting: BESL Research team organizes and arranges meeting

with the management body of various companies on behalf of foreign

institutional investors and prime clients.

BSL Index: BRB SECURITIES LIMITED Research maintains proprietary index of

its own to help foreign clients with their investment decision.

Dedicated Traders: Dedicated traders are in place for swift and best

execution of buy/sale orders of foreign clients. Necessary compliance is in

place to prevent front-running to protect the best interest of our clients.

IPO Investment: To apply for an IPO, foreign investors need to contact the

custodian bank. The custodian bank will carry out the process of applying for

IPO allotments.


Following is a list of custodian banks:

• BRAC Bank Limited.

• Hong Kong and Shanghai Banking Corporation.

• Standard Chartered Bank

Tax Impact

Foreign

individual Foreign company

Cash Dividend* 25% 20%

Capital Gain 0% 10%

*Deducted at source

B) Depository Services

BESL extend full depository services that comprise opening and maintenance of BO account,

dematerialization and re-materialization of instruments, transfer and transmission of instruments,

pledging-un pledging through CDBL.

C) Trading Services

As we aspire to be one of the leading

Brokerages in the country, we have

dedicated all our endeavors in

developing a solid trading

infrastructure. Being founded upon

the urge to be the market leader, we

have already taken some big strides

towards success by establishing

spacious trading floor, female

trading booths, multiple VIP Trading

booths and separate Tele-trading

booths.


D) Margin facility

We also arrange margin facilities for clients by teaming up with BESL.

E) Institutional help desk

Any institution or large investor can avail customized client service through a separate

institutional help desk at BESL.

F) Tele/E-mail Trading

As it is not always possible for an investor to visit physically and submit his order, we allow

placement of order over Phone and via E-mail.

G) Female trading booth

BESL maintains separate female trading booths to facilitate trading for women investors.

H) VIP trading Booth

Since institutional investors' need seclusion while making their investment, BRB Securities

Limited has established separate VIP Trading booth in every outlet.

I) Client Services

We believe that "Quality makes a sale but Salesmanship Makes a resale". Holding this belief as

the key criterion, we have formed a fine tuned team of customer service that is composed of a

group of fresh business school graduates and veteran customer care personnel who are

amiable, efficient and receptive to customers' queries.

J) Fees & Charges

• BO account opening Charge "Tk. 600"

• Settlement and Transaction costs are inclusive of brokerage commission.

• Brokerage commission: 0.45%

K) Corporate Advisory

� BRAC EPL STOCK BROKERAGE LTD's Corporate Advisory Services: BRAC EPL STOCK

BROKERAGE LTD offers corporate advisory services to private and publicly listed companies.

We use our experience of the local market and our global network to deliver successful

solutions. Through our services, we help our clients to grow their business, formulate strategy,


obtain best value from their assets and achieve best pricing for a transaction. We work with

the best professional services companies in order to provide comprehensive services to our

clients. Our services go beyond the accounts and balances of a business. To us it is just as

important to continue a profitable business as to follow a strategic direction, be it growth,

higher profitability or exit. We offer the following services:

� Corporate Restructuring and strategic consulting: BESL provides corporate restructuring

services in order to maximize asset value as well as to prepare privately held companies

for public listing. We work with accountants, tax consultants and corporate lawyers to:

• Resolve outstanding tax, reporting or registration issues.

• Expand capital base of companies.

• Make strategic buying and selling of assets.

Under Corporate Restructuring, we also provide services to clients that are looking for a

turnaround of their business. No matter how challenging the circumstances, our people

are trained to seek innovative and practical solutions to the most complex business

problems. We are committed to excellence in problem solving; our professionals have

worked on some of the most innovative solutions of recent years

� Mergers and Acquisition: BESL provide expert and in-depth advice to corporate clients,

private equity and venture capital firms, entrepreneurs and government agencies. We are

committed to our clients' deal, and we will use our experience of the local market place

and our global network to deliver successful solutions. Our team combines our expertise

to provide a complete suite of services focused on providing high quality, comprehensive,

and strategically focused tax, accounting, and advisory services to support you in your

transactions.

� Joint Ventures: Because of BESL external network, they are often the partner of choice

for foreign companies’ who’re looking for joint venture partners. They help to structure

contracts to optimize the objectives of partners. We assist in contract negotiations and

review of contract documentation, formulate tax efficient business models and assess

other tax implications. For our clients, we undertake comprehensive reviews of business

operations carrying out health checks aimed at providing assurance in tax compliance.


� Feasibility Studies and Risk Assessment Services: BRAC EPL Stock Brokerage Ltd offers in

depth due diligence services to its clients. Our services incorporate technical, operational

and financial feasibility of projects or investment, and can be customized according to the

needs of our clients. Our work attempts to determine the overall advisability of

undertaking a project and blends into the existing knowledge to the client. We often

provide a due diligence service after the failure of a project. Such forensic due diligence

assists our clients to learn valuable lessons that can be used in future projects

� Valuations - BESL provide a full range of valuation services to clients in all industries.

Services that we provide include the valuation of business enterprises, debt and equity

securities, intangible assets, and purchased research & development, as well as the

provision of fairness opinions and solvency opinions. Our valuations are prepared for a

variety of reasons, including mergers and acquisitions, allocation of purchase price,

litigation support, financing, and others.


� Institutional Investment

� BRAC EPLStock Brokerage Ltd's Institutional Investment Services: As a leading Stock

Brokerage in the country, BRAC EPL provides brokerage services to institutional clients.

These institutions include banks, non-banking financial institutions (FI), insurance

companies, mutual funds, pension funds and foreign portfolio investors. Institutions'

investment needs differ from that of individuals. Institutions invest large amounts and

the size of their transactions often moves the market. They are subject to capital

restrictions by industry regulators (such as the Bangladesh Bank). They have strict

compliance guidelines. Consequently, our services to institutions go beyond

transactions

While servicing our institutional clients, we pay special attention to these extraneous

issues. We closely work with the compliance departments of the institutions to stay

within the regulatory boundaries. We advise our clients as to the optimum timing of a

large trade so as not to disrupt the market. Finally, for large institutional investors, we

provide customize research reports that facilitate their investment process. BESL

institutional clients include the following:

� BRAC Bank Limited

� Scholastica Private Ltd

� Agni Systems Ltd

� Bank Alfalah Ltd

� GSP Finance CO. Bangladesh Ltd

� SWADESH Investment & Management Ltd

� International Leasing & Financial Services Ltd

L) Online Trading

Generally, online trading refers to buying and selling securities via the Internet or other electronic

means such as wireless access, touch-tone telephones, and other new technologies. With online

trading, in most cases customers access a brokerage firm's Web Site through their regular Internet

Service Provider. Once there, customers may consult information provided on the Web Site and log

into their accounts to place orders and monitor account activity. Please note that, the online trading

system only allows users to submit trade (buy/sell) instructions; traded will be executed through the

stock exchange systems by the traders following the online trade instructions given by the investors

via online trading system.


BRAC EPL Stock Brokerage Limited wants investors to make educated decisions about online trading.

We want investors to have reasonable expectations about the possible success of their online trading,

and to consider the risks as well as the rewards of employing these promising new investing facilities.

Here are frequently asked questions about the basics of online trading:

M) Corporate Responsibility

Since the inception, as a responsible corporate body BRAC EPL Stock Brokerage Limited. has

undertaken various initiatives considering the interest of customers, employees,

shareholders, communities and environment. These initiatives go beyond the statutory

obligation/mandatory compliances to voluntary activities that promote sustainable

development. BRAC EPL provides continuous support to the environment and communities

that it operates in. BRAC EPL CSR Initiatives in 2013:

• Amor Ekushey Grontho Mela

• Patriotic poem cd

• Computer Donation: Bagmara High School, Nawabgonj; Sallah Samabaya High School, Kalihati,

Tangail

• Employment of Acid Victims

• Lifetime support to Bir Protik Taramon Bibi

• Scholarship for Adomyo Medhabi with Prothom Alo

• Scholarship for poor students of BRAC University

• Scholarship for Afghan Student

• Scholarship for the children of poor Journalists in Patuakhali region

• Supported Libya returnees in association with BRAC

• Donated to IRRI for their research activities

• Computer donation to Presidency University

• Daur 2011

• Warm Clothes Distribution to the cold hit poor people


C h a p t e r 4

Findings & Analysis


4.1. Service Analysis

BESL client-focused sales traders work with research, sector specialists and provide advice, timely

market information, liquidity and best execution. Our team is committed to delivering exceptional

client outcomes …

“We continually refine our service offerings to provide forward-looking ideas, superior execution

and state-of-the-art tools for ever changing markets.”

Core benefits of trading via BESL


4.2. Excellence in strategic trading

BRAC EPL is committed to provide its client with multiple ways to strategize, track and execute

securities transactions in both of the exchanges of the country. Exclusive trading platform that

ensures transparency and confidentiality that helps client to achieve their goal.

4.3. EMS Order book (Bloomberg)

• Provide Live fills to clients.

• Monitor trade & percentage completed through

out the session

• Key for clients decision making process.

• Ability to acknowledge trades real time.

• Ability to view client instructions per fix.

• Clients able to state order types, GFD, GTC, LMT

etc

• Provides client to see working orders.

• Enables DFD function.


4.4. Competitors

BRAC Bank intends to set standards as the

market leader in Bangladesh. It

demonstrates that a locally owned

institution can provide efficient, friendly

and modern service on a profitable basis.

To make this successful, the management

committee is always thinking and working

to improve the performance of BESL. All the

members have a clear vision of achieving

3Ps (People, Planet and Profit) philosophy

in each and every activities to build a better

and challenging financial future.

BESL Competitors ARE:

• ICB

• Lanka Bangla and Many Other Merchant Banks.

For the Year 2013

October November December Broker Name

Turnover Mkt % Turnover Mkt % Turnover Mkt %

Lanka Bangla 3,572,502,199 9.81 6,611,304,315 9.9 19,254,041,727 14.55

ICB Securities Trading

Co. Ltd. 3,725,457,585 10.23 7,419,759,493 11.11 15,565,929,034 11.76

BRAC EPL Stock

Brokerage Ltd. 2,976,734,593 8.17 4,947,372,601 7.41 8,864,621,534 6.7

Source: BESL web site (www.bracepl.com)


4.5. SWOT Analysis

A SWOT analysis is “a technique for matching organizational strengths and weaknesses with

environmental opportunities and threats to determine the organization’s right niche”.

SWOT analysis is an important tool for evaluating the company’s Strengths, Weaknesses,

Opportunities and Threats. It helps the organization to identify how to evaluate its

performance and scan the macro environment, which in turn would help organization to

navigate in the turbulent ocean of competition. With this tool, we will be able to determine,

though not perfectly, since we are not internal members of this organization, the internal

strengths and weaknesses of BESL as well as the opportunities and challenges that the

changing external environment provides.

Strength

� BRAC EPL has a strong financial back-up on the industry financial resources to grow its

business.

� Capital Market Investment Committee (CMIC) has been formed with the member of best

skilled professionals of BRAC Bank, by whom the policy is made regarding investment.

� The policy of BRAC Bank to invest in ‘A’ category shares implement that bank has elevated

scope to get high return from the investment.

� BRAC EPL playing a successful role in making analysis and profitable investment.

� Reporting about the performance of investment is very structural and well monitored. Such

as, Trading and operation unit have to give daily report to CMIC.

� The analysis on Capital Market exposure for last 3 years giving a result that there is a

consistency in investment.

� Every rules and regulation imposed by Bangladesh Bank are practiced very obediently.

Weakness

� The dependency for reporting with other team sometime making conflict in maintaining

deadline and transparency.

� The dissatisfaction among employees regarding salary and workload may not able to bring

best outcome from them.

� From the analysis I have found out that BRAC Bank is not that much risk lover. Because

analysis showing us that BRAC bank has the highest investment of 4.16% on its total liabilities

over the last three years where a commercial bank is allowed to invest 10% of its total

liabilities on the capital market.


Strength Weakness

SWOT

Opportunity Threat

Opportunity

� After the crash on capital market in December 2010 government took a number of steps

which could a great opportunity for BESL as well as BRAC Bank limited for future profitable

investment. Some of those are:

• Tk. 600 crore worth of funds distributed to the state-owned banks and Investment

Corporation of Bangladesh (ICB), and formation of a mutual fund titled Bangladesh

Fund with an initial resource of Tk. 1,500 crore.

• Under the national budget of FY2011-12, government announced a number of

incentives to regenerate the capital market. Some of these were – re-introduction of

tax repayment facilities, tax-free facilities for mutual funds

• Government has decided to take actions against people who were involved in

malpractices and manipulation.

� BESL can offer more services to its clients to their respective debit balance.

� BESL can start taking some deposit to its customers as they have a huge customer from its

Brokerage service.

� Large market share in Brokerage sector Bangladesh has given BESL immense opportunity build

strong relationship with its customers. Most of the times customer does take repeat their

loans that are taken under Brokerage Section.

� Average ages of BESL employees are less than 35. So BESL can bring more outputs from its

young employees more than other Brokerage.


Threats

� In a strategy it has shown that, only 19 per cent of total listed companies were audited by

firms that had official affiliation with international audit firms. So there have a question about

the ranking of share.

� Bull cartels are reported to be formed with some members of DSE/CSE, officials of the SEC,

political leaders, high-profile businessmen, officials of financial institutions, and Owners of

brokerage houses, etc. So it is a great threat in taking investment decision.

� The changes in policies of Government by the changes of Government parties.

� Unstable and unpredictable capital market of Bangladesh.

� One of the major weaknesses that I have found during my internship period was their

huge manpower. It is seen that BESL takes many initiatives but they cannot implement all

their steps in a proper way because of its weak monitoring system.


C h a p t e r 5

Recommendation & Conclusion


5.1. Recommendation

In this part of recommendation, some valuable issues of BRAC Bank Ltd. (BBL) are discussed.

These were the aspects that came out while working as an intern at BBL. These were related to

various parts of BBL and thus are placed in the list of general recommendation. According to

SWOT analysis some decision can be taken.

� Efficiently distribute the number of employee in required

position.

� Make the salary structure attractive to the employee.

� Make succession planning.

� Reduce the extra workload of the employee.

� The co-ordination among the department should be more

structural.

� Should be more serious in case of submission of report within

the dead line.

� BRAC Bank could be more risk taker in terms of capital market

investment.

� Should have more curiosity among employees to make learn

something to a intern.


5.2. Conclusion

BRAC EPL Stock Brokerage Ltd. is an emerging Brokerage House and it plays a vital role in both small

and medium investors in the Dhaka Stock Exchange. Since the commencement of brokerage

operation, it has gained enormous popularity. BRAC EPL Stock Brokerage Ltd. has made significant

progress within a very short time period due to its dynamic management BRAC EPL Stock Brokerage

Ltd. is only completed seven years of brokerage service. At the initial stage of business, every

institution has to go through the different path of survival. To achieve the confidence of the

customer, the BRAC EPL Stock Brokerage Ltd. must execute some improvements in its marketing and

operational areas. BRAC EPL Stock Brokerage Ltd. should try to win customers faith by providing

those efficient and dependable services, credit facility and updating with user friendly modern

technologies. The BESL should redesign all sorts of brokerage procedures to be more users friendly,

attractive and impressive. Capital Market in Bangladesh is in a sound position to continue to support

growth in the economy and to meet the challenges Bangladesh will face over the coming decades. It

is important that we continue to monitor the competitive dynamics of the capital market closely and

continue to empower consumers. In addition, the capital market crisis has given us the opportunity to

strengthen our financial regulation further to safeguard against future financial crises, whilst also

making sure that regulation is appropriate.


References

1. Webpage of BRAC EPL Stock Brokerage Ltd. (www.bracepl.com)

2. Bangladesh Bank related website.

3. Annual report of BRAC EPL Stock Brokerage Ltd.

4. Website of Dhaka Stock Exchange Ltd. (www.dsebd.org)

5. Website of Bangladesh Securities and Exchange Commission.

6. Website of CDBL.


C h a p t e r 6

Appendix


6.1. Appendix:

Sample Questionnaires for survey: All the information provide will be used only for academic

purpose and your identity will be kept anonymous and confidential.

Please encircle best answer for the following questions:

1. Employees of the BESL are friendly

□ Strongly agree

□ Agree

□ Neutral

□ Disagree

□ Strongly Disagree

2. BESL is proactive enough to provide desired customer service

□ Strongly agree

□ Agree

□ Neutral

□ Disagree


3. BESL communicate and collaborate with customer properly

□ Strongly agree

□ Agree

□ Neutral

□ Disagree



4. Employees are dedicated enough to provide professional services.

□ Strongly agree

□ Agree

□ Neutral

□ Disagree


5. Account opening process was enjoyable at BESL

□ Strongly agree

□ Agree

□ Neutral

□ Disagree


6. BESL maintain confidentiality of customer information

□ Strongly agree

□ Agree

□ Neutral

□ Disagree


7. Cost of services are relatively less expensive at BESL

□ Strongly agree

□ Agree

□ Neutral

□ Disagree


8. Customer have to wait less time to get the services

□ Strongly agree

□ Agree

□ Neutral

□ Disagree



9. BESL is technologically advanced

□ Strongly agree

□ Agree

□ Neutral

□ Disagree


10. Troubles in the service system occur less frequently

□ Strongly agree

□ Agree

□ Neutral

□ Disagree


11. Office is highly equipped to give better service to customer

□ Strongly agree

□ Agree

□ Neutral

□ Disagree


12. Research and publication and other price sensitive news are available at BESL

□ Strongly agree

□ Agree

□ Neutral

□ Disagree


13. BESL is up-to date about the rules and regulation of different regulatory bodies

□ Strongly agree

□ Agree

□ Neutral

□ Disagree



14. Transaction with BESL is transparent and trustworthy

□ Strongly agree

□ Agree

□ Neutral

□ Disagree


15. Office Environment of BESL is good enough

□ Strongly agree

□ Agree

□ Neutral

□ Disagree


16. Daily Operation system of BESL is systematic enough

□ Strongly agree

□ Agree

□ Neutral

□ Disagree


17. Employees of BESL maintain highly ethical standard.

□ Strongly agree

□ Agree

□ Neutral

□ Disagree



6.2 Daily Market Report

Source: Website of BRAC EPL (www.bracepl.com)


A Sample BO account opening form as attachment

Ashraf@Final@Thesis

Documents

Transcript of Ashraf@Final@Thesis