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