Located at the heart of the Dhaka City is Bangladesh's main stock exchange—the Dhaka Stock Exchange. More popular as DSX, the Dhaka Stock Exchange in Motijheel and was incorporated in 1954.
Unlike Western countries, stock exchange began late in Asia and was only established because of the influence of Western trading concepts. The DSX is the first stock exchange in Bangladesh that started formal trading in 1956.
Previous to be calling called the Dhaka Stock Exchange, the DSX was then known as the East Pakistan Stock Exchange Association Ltd. In June 23 1962, it was renamed the East Pakistan Stock Exchange Limited.
Later, in May 13, 1964 the name was again changed to Dacca Stock Exchange Ltd. Though trading stocks was good, it had to discontinue for five years after the liberation war in 1971.
Trading resumed in 1976 and a decade later, the DSX All Share Price Index began. On August 10, 1998, automated trading was established.
The DSX is a public limited company, meaning it was formed, managed and regulated by the following Acts: the Security and Exchange Commission Act of 1993 and 1994, the Company Act of 1994 and the Security Exchange Regulation of 1994.
The decision making body of the company is separated from management. Management and operation of Bangladesh's prime stock exchange is entrusted to a board comprised of 25 members.
Half of the body are elected from DSX members while the other half is selected from different relevant organizations and trade bodies. The 25th person of the board is the CEO, who is the ex-officio member of the board.
The issued capital of DSX is divided into 250 shares, which is priced at Tk. 2000 each. This means, the total amount of issued capital amounts to Tk. 500,000. Like in other stock exchanges, only members can buy, sell and trade stocks for himself or his clients.
Currently, DSX has around 230 members. In September 2007, the DSX's market capitalization almost reached US$ 9 billion.
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