Capital Market in Bangladesh

Capital Market in Bangladesh:-

There are two stock exchanges in Bangladesh Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). Dhaka Stock Exchange (DSE) formerly known as East Pakistan Stock Exchange established in and Chittagong Stock Exchange (CSE) established in1995. There is only one depository system for the transaction and settlement of financial securities, which is known as Central Depository Bangladesh Ltd (CDBL) was formed in 2000. It is conducting its operations under the following laws Depositories Act 1999, Depositories Regulations 2000, Depository (User) Regulations 2003, and the CDBL by-laws. It Capital market is regulated by BSEC. There are companies enlisted in DSE and Companies enlisted in CSE. Every share enlisted in DSE and CSE has a face value of taka 10 and market lot consists of only one share. 

Bangladesh Securities and Exchange Commission (BSEC) Classified companies in four categories

1. A Category

2. B Category

3 .N Category

4. Z Category

1.      A Category Companies: - These companies regularly hold Annual General Meeting (AGM) and Declare dividends at the rate of 10% or more in an accounting year.

2.      B Category Companies: - These companies held Annual General Meeting (AGM) regularly but declare dividend at a rate which is less than 10%.

3.      N Category Companies: - Newly enlisted companies are categorized in this category. There settlement system would be like B Category.

4.     Z Category Companies: - Companies which are failed to hold Annual General Meeting (AGM) or fail to declare dividend or which are not in operation more than six months.

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Income Tax Authorities in Bangladesh

Income Tax Authorities in Bangladesh:  

Following are the income tax authorities in Bangladesh.

1. National Board of Revenue
2. Chief commissioner of taxes
3. Directors General of Inspection (Taxes),
4. Commissioner of Taxes (Appeals),
5. Commissioner of Taxes (LTU)
6. Director General (Training),
7. Director General Central Intelligence Cell (CIC),
8. Commissioners of Taxes,
9. Additional Commissioners of Taxes (Appeal/Inspecting) Joint Commissioners of Taxes(Appeal/Inspecting),
10. Deputy Commissioners of Taxes,
11. Tax recovery officers,
12. Assistant Commissioners of Taxes,
13. Extra Assistant Commissioners of Taxes
14. Inspectors of Taxes.

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Sources of Income under Income Tax Ordinance 1984

Sources of Income under Income Tax Ordinance 1984:-

For computing total income and charging tax thereon, sources of income can be classified into seven categories, which are as follows:

1.            Income from Salaries

2.            Income from Interest on securities

3.            Income from house property

4.            Income from agriculture

5.            Income from business or profession

6.            Income from Capital gains and

7.            Income from other sources.

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What is Reverse Split

 

Reverse split: - Reverse split decreases the total number of shares of a company. Due to reverse split total number of shares decreases, par value of shares is increased but market capitalization will remain same and EPS of the company will increase as the no of share outstanding decrease.

For example consider a company which has 1,00,000 shares outstanding with a par value of BDT 10, now it decides to make a reverse split of 1 for 2. So the new number of shares outstanding will be 50,000 and par value will be increased to BDT 20.

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What is Stock Split

Stock Split – Stock split increases the total number of shares of a company. Due to stock split total number of shares increase, par value of shares is reduced but market capitalization will remain same and EPS of the company also reduced as the no of share outstanding increase.

For example consider a company which has 1,00,000 shares outstanding with a par value of BDT 10, now it decides to make a stock split of 2 for 1. So the new number of shares outstanding will be 2,00,000 and par value will be reduced to BDT 5.

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