ASSIGNMENTON INDICES OF DSE & CSE Submitted to: Prof. Dr. Mahmuda Akter Professor, Department of Accounting & IS University of Dhaka Submitted by: Al-Mamun ID: 11324067 Department of Accounting & Information Systems MBA Program (Evening) Submission Date: March 14, 2014 University of Dhaka Begging of DSE and CSE Bangladesh has two Stock Exchanges. DSE is situated at the main market place of Dhaka. The stock exchanges deals with the . 1995 for establishing the country's second stock exchange. 1993 under the Securities and Exchange Commission Act. Dhaka Share Market consists of the Dhaka Stock Exchange or DSE. excluding the Chairman. Dhaka Share Market is still at its infant stage and has to walk a long way for coming into the radar of the Global Financial Market. The Securities and Exchange Commission (SEC) was established on 8th June. Dhaka Stock Exchange (DSE). which is also conducted by Computerized Automated Trading System . Stock Exchanges are mutual organization that facilitates trading of company stocks and securities to the stock brokers and traders. Dhaka Share Market formally started its trading in the year 1956 even before the formation of Bangladesh as a country. private sector entities which must have their operating rules approved by the SEC. 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. The Chairman and Members of the Commission are appointed by the government and have overall responsibility to administer securities legislation. 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. capital of Bangladesh. The Commission is a statutory body and attached to the Ministry of Finance. the main share market of Bangladesh. 1993. at present has three full time members. The Commission. called Motijhil. All exchanges are self-regulated. where trading is conducted by Computerized Automated Trading System and Chittagong Stock Exchange (CSE). mobilize savings for investment. facilitate company growth.Cap Closing Index = -------------------------------------------------------------Opening M.Cap . The best thirty performing stocks information. overall information is provided here. The stock exchanges also involves in the payment of income and dividends. These are – DSEX: DSEX represent the DSE all Share Price index for the Dhaka Stock Exchange (DSE). Construction of DSE general price index The algorithm of index calculation according to IOSCO index methodology is: Yesterday's Closing Index X Current M.Cap Current Index = -------------------------------------------------------------Opening M.issue of securities and other financial instruments. The role of the stock exchange is to raise capital for businesses.based screens for Shariah compliance. DSES: DSE Shariah Index (DSES) is constructed as a subset of the DSE Broad Index (DSEX) and includes all the stocks included in the parent Index that rules.Cap Yesterday's Closing Index X Closing M. DS30: DS30 is an index where the best thirty stocks are listed. movement. DSE Indices There are three categories for the DSE indexes. and redistribute wealth as well as raising capital for financing the development projects of the government. MSCI. Cap = ∑ (CP X Total no. CSE 30: CSE 30 is an index where the best thirty stocks are listed. of indexed shares CSE Indices CASPI: CASPI represents the CSE all Share Price index for the Chittagong Stock Exchange (CSE). of indexed shares) Closing M. The best thirty performing stocks information. Cap = ∑ (LTP X Total no. . movement. the free float Methodology of index construction is considered to be an industry best practice and all major indexes like MSCI. The enhanced CSE indices will provide a platform for a wider range of investable and appealing opportunities. Here all the stock including the Z category stock is also included. Globally. FTSE and S&P have adopted the same. Index Calculation of CSE All the indices of the Chittagong Stock Exchange Ltd (CSE) are calculated and maintained following Laspayers Method which was considered as the most transparent and scientific at the time of its inception. investable. overall information is provided here. The constituents will be free float adjusted with only the investable portion included in the index calculation.Current M. a leading global index. CSCX: It represents the Chittagong Special Categories Index. and tradable and transparently managed Index. Now it is required to adopt a modern and internationally accepted calculation methodology to provide a more sensitive. shifted all its indices to the Free-float Methodology in 2002. be considered as strategic) Shares held by Associated Companies (Cross holdings) Other shares under lock – in (if any) Free-Float: XXX XXX XXX XXX XXX XXX XXX XXX All CSE indices will be calculated using following formula: Free-float market capitalization of index constituents/ Base Market capitalization * Base Index Value .Free-Float Calculation Methodology: Total Outstanding Shares Less: Shares held by Directors/sponsors Government Holdings as promoter/acquirer/ controller Strategic Stakes by Private Corporate Bodies/ Individuals (Any holding more than 5% held by an individual/company.
Report "Indices Calculation Methodology of DSE & CSE"