Are you able to engage in purchasing and selling share in the
stock exchange ?
Slide 2
GROUP D DEPARTMENT OF ACCOUNTING & INFORMATION SYSTEMS
UNIVERSITY OF DHAKA
Slide 3
Name ID No. 1. Md. Kamal Pasha 16111 2. Aninda Ghosh 16096 3.
S.M.N Jamiul Hikma (Sajib) 16103 4. Md. Rafiqul Islam (Hiron) 16094
5. Md. Monirul Islam (Monir) 16109 6. S.M. Rakibul Islam (Sourav)
16100 7. Al-Imranul Alam (Rabbi) 16183 8. Md. Robiul Islam 16121 9.
S.M. Moshiur Rahman (Rohan) 16184 10. S.M. Ibne Sad (Anik)
16118
Slide 4
OPERATIONS OF BROKERAGE HOUSE
Slide 5
A person or firm that conducts transactions on behalf of a
client. Brokers derive their profit from commissions on orders
given.
Slide 6
Bill and note broker Commercial or merchandise broker Insurance
broker Real estate brokers Matchmakers(marriage brokers)
Stockbrokers
Slide 7
A brokerage house, also called a brokerage firm, is a company
licensed to buy and sell stocks or securities on behalf of
investors.
Slide 8
Shares Buy Sell Publicly listed Company Stock Exchange
Investors Brokerage House
Slide 9
Before the Liberation War Small number of companies listed
Instability in political and business environment Few business
investors After the Liberation War Cry Out system up to 1996 share
market collapsed. Chittagong Stock Exchange (CSE) established in
1995. Fully automated computerized system was installed on 10
August 1998. The Central Depository Bangladesh Limited (CDBL)
established in 2000.
Slide 10
No entity shall be eligible for getting license as a stock
broker if- It is not enlisted as a member of stock exchange. It is
a merchant banker, portfolio manager, trustee of mutual fund and
Asset Management Company. It is not a company or statutory agency
and its paid up capital is less than 25 lakh. Any member of its or
its board of directors is involved in fraud and illegal activities.
He is identified according to statement of Credit information
Bureau as a non payer of loaned money
Slide 11
A brokerage firm can open maximum 4 branches under one time
authorization. Submission Requirements: AAn application DDecisions
of Board meeting PPhotocopy of hire contract(Certified by member)
NName of the approved agent NName of in-charge of branch
office
Slide 12
Slide 13
Slide 14
The administrative officer and Manager of # SEC # DSE # CSE #
Any person not permitted under penal code & bankruptcy act
Slide 15
The trading process in brokerage house is technical. The base
of the brokerage operation is done by Trading Software which
establishes connection between brokers and stock exchanges.
Developments in information & communication technologies (ICT)
have enhanced the potentiality of ICT to the electronic trading
systems.
The application, which runs in DSE for trading, is called TESA
(Tandem Electronic Securities Architecture). TESA has two parts:
MMSA (Member's Server Application) & TTWS (Trader
workstation).
Slide 19
The CSE trading system: CHITTRA has four modules: 1. Broker's
Workstation (BWS), 2. Market Operations Systems (MOPS), 3.
Surveillance 4. VECTOR ( Versatile Engine for Trading and On-Line
Reporting)
Providing Loan(charge 20%) Underwriting Managerial Consultancy
Maintaining efficiency, reliability and probity Responsibility to
clients Providing correct information Providing advice about
Investment Responsibility to commissions Banning on involving
illegal activities for own interest Banning on creating Black
market Informing about suspicious activities
Slide 22
A charge made by DSE against purchase of sale of securities.
Its charged on per batch of buy and sale of securities on trade. In
case of successful executed buy or sale of securities, A unique
number of ID is labeled on that transaction called the Howla
Number. At present Tk. 2 is charged against per howla. In CSE its
called Contract Charge which is same as the DSE.
Slide 23
A charge made by DSE against the purchase or sale of
securities. Its the commission charged by DSE. At present this
charge is Tk. 0.002 per hundred taka trade of securities. In CSE
its called Commission Charge. Unlike DSE there are slab to claim
this charge: Trade Value 5core 0.0175% Trade Value 5core10 crore
0.0150% Trade Value 10 crore 0.0125%
Slide 24
1. Session Control: Opening and closing the market via
interactive control. 2. Validation Parameters: Setting and viewing
parameters that control the trading engine validation e.g. tick
size, Circuit Breaker, Circuit Filter, Market lot, Price protection
Percentage. 3. Messaging: Allows the dissemination of company
announcement data and general market administrative massages.
Slide 25
AA n advanced trading system over the Cry out Market. IIn this
system the shares are dematerialized RR ecord clients every
transaction electronically
Slide 26
T HERE ARE FIVE SESSIONS OF TRADING PERIOD : a) Pre-opening
session b) Opening session c) Continuous or Regular trading session
d) Closing session e) Post-closing session
Slide 27
Orders may be grouped or categorized based on the following:
PriceVolume Validity Good till date Good till day Full fill or kill
Partial fill and kill Partial fill Match at Closing Price Order
Drip Feed Order Market order Limit order
Slide 28
Share market debacle Belated action by regulatory bodies Lack
of investors confidence
