Equity

Currently two types of Equity instruments are tradable at DSE -

• Equity
  These are ordinary shares of listed companies. For a certain period from the IPO date certain number of shares are not tradable. DSE Indices are calculated based on free float shares of selected listed companies. Free float is adjusted for non-tradable shares, institutional holdings, strategic holdings, sponsor-director holdings and Government holdings. Equity shares depending on the category have settlement period of T+2 or T+3. For implementation of record dates for corporate actions shares are sometimes placed on T+0 settlement cycles for certain number of days.


• Mutual Funds
  These are units of one of the variants of listed collective investment schemes. These funds are usually closed end mutual funds governed by the Securities and Exchange Commission (Mutual Funds) Rules, 2001 and is backed by one corporate sponsor and usually is named with the sponsors name. The sponsors are required to hold at least 10% of the holding for at least a period of 1 year and 1% of the holding for the total life of the fund. There are designated Asset managers and Trustees. The Asset Managers manage the funds on day to day basis and investment strategies are governed by the IPO prospectus and is supervised by the Trustees. All assets of a mutual fund is maintained with a custodian. Mutual funds are traded on a T+2 settlement cycles. For implementation of record dates for corporate actions shares are sometimes placed on T+0 settlement cycles for certain number of days. Mutual Funds are not parts of any indices. Asset managers are required to disclose NAV of respective mutual funds on weeky basis.

Debt

Currently three types of Debt instruments are listed at DSE-

• Corporate Bonds
  There are 9 corporate bonds (including Beximco Sukuk Bond) are listed with DSE. Corporate Bonds are traded on T+2 settlement period trading fees are fixed at Taka 50 per transaction.


• Treasury Bonds
  251 Government Securities (treasury bonds) issued by the Bangladesh Bank (Central Bank of Bangladesh) are listed with DSE. The common maturities are 2, 5, 10, 15 and 20 years. Coupon rate varies depending on when the bonds were issued. Par value of each treasury bond is BDT 100.


• Debentures
  These are unsecured debt instruments issued by listed companies. They carry both variable and fixed interest rates. All currently listed debentures are matured and are still listed due to some incomplete legal proceedings.

Future Products

DSE has already initiated steps to explore and launch various new tradable product starting with Convertibles, Bonds, Shariah Compliant Products including Sukuk, Index, ETFs and V-Next. Once these products are in mature form the department will be seeking to launch related hedging products. DSE is continuously communicating with domestic and global stakeholders.