If I have bought shares when do I pay money to the broker?

If you have bought shares, you have to pay-in-funds to the broker in such a manner that the amount paid is realized before the funds pay-in-day.

If I have bought shares when do I pay money to the broker?

If you have bought shares, you have to pay-in-funds to the broker in such a manner that the amount paid is realized before the funds pay-in-day.

If I have sold shares when do I deliver them to the broker?

You have to deliver the securities to the broker immediately upon your getting the contract note for sale but in any case before the shares pay-in-day.

What is settlement cycle?

Settlement cycle on the DSE/CSE is an account period for the securities traded on the exchanges.
CLEARING AND SETTLEMENT PROCEDURE
Trading Procedure and Settlement:
Accounting Period Settlement Day
Saturday to Monday Next Wednesday
Tuesday to Thursday Next Monday

To what extent price of a share can increase or decrease in a day and during a settlement?

Standard upward and downward price limits over the previous days market price applicable for each market day:
Previous days per share market price Limits
Upto Tk. 200 20% but not exceeding Tk. 35
Tk. 200 to Tk. 500 17.5% but not exceeding Tk. 75
Tk. 501 to Tk. 1000 15% but not exceeding Tk. 125
Tk. 1001 to Tk. 2000 12.5% but not exceeding Tk. 200
Tk. 2001 to Tk. 5000 10% but not exceeding Tk. 375
Tk. 5001 and above 7.5% but not exceeding Tk. 600

What are the documents you should receive from your broker and when?

Order confirmation slip. After the order has been placed. Trade confirmation slip. After the trade has been executed. Contract Note: with in 24 hours of the trade being executed

How do I execute an order on the stock exchanges?

Select the broker you want to trade with opening an account and fulfill the other formalities. Place orders with the broker in writing. Ask for the order confirmation slip on the day the order is placed. Ask for trade confirmation slip on the day the trade is executed. Ask for contract note at the end of the trade date. Ensure smooth settlement of the trade by delivering securities and funds on time to your broker.

What is an ex-date?

The first day of the no-delivery is the ex-date viz. If there is any corporate benefit such as rights, bonus, dividend etc. announced for which book closure/record date is fixed, the buyer of the shares on or after the ex-date will not be eligible for the benefits.

What is a no-delivery period?

Whenever a book closure or a record date is announced by a company, the stock exchanges sets up a no-delivery period for that security. During this period, trading is permitted in the security. However, these trades are settled only after the no-delivery period is over. This is done to ensure that investor's entitlement for the corporate benefit is clearly determined.

What is a Book Closure/Record Date?

The ownership of shares of companies traded on the stock exchange is freely transferable by registration. However, shares are many times held by buyers without sending it for registration to the company. In order to be entitled to the benefits such as dividend, bonus, rights etc. announced by the company , a buyer would need to send it for registration. The company announces cut off dates from time to time. The list of members on the companies registers as of these cut off dates be the people entitled to the corporate benefits.

• What are the points to be checked by an investors to check the validity of a contract note?

Name and address of trading member, their SEC registration number, details of trade like order No. trade No. trade time, security name, quantity rate, brokerage, settlement no, signature of authorized signatory.

What is contract/confirmation note?

Contract note is a confirmation of trades done on a particular day for and on behalf of a client. A contract note issued in the prescribed format and manner establishes a legally enforceable relationship between the member and client in respect of the trades stated in that contract note. Contracts note are made in duplicate and the member and client both keep one copy each.

What is the maximum brokerage that a broker can charge?

The maximum brokerage/commission chargeable is at present 1% of the trade value.

What are the formalities for becoming a client of a broker/authorized representative?

All investors should open accounts with necessary documentary support of proof of identity(Preferably Nationality Card / Passport of non reisednse Bangladeshis) and get the registration/account number. The features of this opening an account is to reduce the chances of any disputes.

How do I deal with a registered authorized representative?

You should send your request in writing for purchase or sale of shares/debentures/mutual funds. The authorized representatives on executing your order furnish you with a purchase/sale note. This purchase/sale note originates from the contract note which is issued by the main broker to the sub-broker. The purchase/sale note would help in resolving any disputes with the authorized representative

How many brokers operate on DSE and CSE?

The Dhaka Stock Exchange (DSE) has 195 SEC registered trading members/brokers and the Chittagong Stock Exchange (CSE) has 124 registered brokers. Many of these registered brokers have authorized representatives operating on the floor on behalf of the concerned brokers of DSE or CSE. You should execute your deal through a registered broker of a recognized stock exchange or through a registered authorized representative

What is DSE All Share Price Index? and How does one read the index?

The DSE All Share Price Index is a market capitalization weighted index comprising all listed companies. Each stock has been given a weight in the index equivalent to its market capitalization. The base was at 100. Daily price change in index securities is captured in the market capitalization figure and reflected in terms of index movement. The index value compares the days market capitalization vis-a-vis base capitalization and indicates how prices in general have moved over a period of time.

What type of instruments are traded?

The following type of instruments are traded at Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) (a) Equity Shares (b) Debentures (c) Mutual Funds

What is quoted company ?

A quoted company is company whose shares are traded on the stock Exchanges

What is stock market?

A stock Market is place where stocks (shares) can be bought and sold