Premier University

Term Paper On:

Analysis of Financial Products of Capital market in Bangladesh:
A case study on Bangladesh’s perspective
(This Term Paper is submitted for the partial fulfillment of the degree of Bachelor of Business
Administration with a major in Finance)

SUBMITTED TO:
Ms.Tasmia Tahlil
Assistant Professor
Department of Finance
Faculty of Business Studies
Premier University, Chattogram.

SUBMITTED BY
Rubal Barua
ID No: 140301-01-074748
Sec- A, Batch-30th
Department of Finance
Premier University, Chattogram.

Date of Submission: 24th March, 2019

Page | 1
 Letter of Transmittal

Date: 24th March, 2019

To
The Supervisor

Ms.Tasmia Tahlil

Assistant Professor

Department of Finance
Faculty of Business Studies
Premier University, Chattogram.
Subject: Submission of term paper on “Analysis of Financial Products of Capital market in
Bangladesh”

Dear Madam,

With immense pleasure, I would like to submit my term paper based on the topic of “Analysis of
Financial Products of Capital market in Bangladesh”. I have prepared this term paper for your
kind consideration.

Throughout the study I have tried with the best of my capacity to accommodate as much
information and relevant issues as possible and tried to follow the instructions as you have
suggested. I tried my best to make this term paper as much informative as possible. I sincerely
believe that it will satisfy your requirements.

Sincerely yours,

Name: Rubal Barua

ID No: 140301-01-07478
Batch: 30th
Major: Finance
Program: BBA

Page | 2
 Acknowledgement

First of all, I am very much grateful to God for blessing me with the strength, aptitude and
patience for successfully completing my term paper. Next, I would like to express my kindness
to my beloved parents whose continuous inspiration and blessings encourages me to make a right
move in my life.

I would like to thank my honorable supervisor, Ms. Tasmia Tahlil, Assistant Professor,
Department of Finance, Faculty of Business Studies, Premier University, Chattogram, for giving
me the opportunity to work with him during my period of term paper. I have completed this term
paper in a comprehensive manner due to the guidance, support and counseling that he has
provided me with during this period. I have tried my best to implement his constructive
suggestions while doing my term paper.

Finally, my sincere thanks go to each and every one who has helped and supported me
significantly in different stages during the period of my term paper writing.

Page | 3
 Executive Summary

The performance of existing financial products is an important issue in the capital market to
increase the new products for reducing the risk of dependency on common stocks. The research
aims are to evaluate the growth and development of existing financial instruments and to
recommend for introducing new financial instruments in the capital market of Bangladesh. The
data are taken from the Dhaka stock exchange for the year 1977 to 2010 for interpretation of
development and the data from 2003 to 2010 are taken for analysis and hypothesis test. There are
only five products traded including three types of bonds. The average growth rate of market
capitalization of common stocks, treasury bonds, mutual funds, corporate bonds & debentures
are 71.02%, 124.74%, 99.85% and 105.41% respectively. The growth of market capitalization of
all products is high. There is lot of scope in the market for absorbing the new products. The share
of common stocks, treasury bond, corporate bond, debentures, mutual funds to total market
capitalizations are 87.73%, 12.25%, 0.24%,0.17% and 0.83% respectively. The market is
common stock based. The corporate bond market is very small. So, there should be increased
new financial instruments in the capital market to reduce the dependency on share only. The
proposed financial instruments are various types of preferred stock, bond, SWAP, option,
futures, and forwards as recommendation.

Page | 4
 Table of Content

Formal Part

Topics Name Pages No.

Cover Page 1
Letter of submission 2
Acknowledgment 3

Executive Summary 4

Chapter One- Introduction

1.1 Introduction 8
1.2 Objective of the study 8
1.3 Methodology of the study 9
1.4 Limitations of the study 9

Chapter Two-Theoretical Background

2.1 Capital market 11

2.1.1 Types of Capital market 12
2.2 Financial Products 17
2.3 Types of Financial Products 18
2.4 Financial Products of Capital market 20

Page | 5
 Chapter Three- Body of the report
Topics Name Pages No.

3.1 Financial Product development in Bangladesh 24

3.1.1 Number of product 24
3.2 Market Development 25
3.2.1 Growth & Development of Corporate Bond 27

Chapter Four- Swot Analysis

4.1 Swot Analysis 36

Chapter Five- Findings

5.1 Findings 40

Chapter six- Problems & Suggestions

6.1 Problems & Suggestions 43

Chapter Seven-Conclusion

Page | 6
Chapter One- Introduction of the study

1.1 Introduction of the study

1.2 Objectives of the study

1.3 Methodology of the study

1.4 Limitations of the study

Page | 7
1.1 Introduction:

The capital market is one of the driving forces of an economy. Capital market is the institution
that provides a channel for the borrowing and lending of long-term funds for more than one year.
It is designed to finance long term investments by business, governments, and households.
Capital market consists of two segments: securities segment and non-securities segment. The
securities segment is concerned with the process by which firm distributes securities to the public
through the primary market and then those securities are traded in the secondary markets. The
non-securities segments are those where banks and other financial institution provide the long
term loan. In the world capital market there are many financial instruments such as-Forward,
Futures, Option: Put option, Call option, Spread, Straddle, Strip, Multi-period option: Interest
Rate Caps, Floor, Collar, Compound option, Swaps- Commodity Swaps, Interest Rate swaps,
Currency Swaps, Variants, Hybrid securities, Synthetic Securities, Zero coupon Bond, Repo,
Reserve Repo, Junk bond, Floating rate Preferred Stock, Equity warrant, Putt able common
Stock. The existing instruments of the capital market of Bangladesh are Shares, debentures,
mutual fund, and Treasury Bond: 5-year,10-year,15-year,20-year, NSD Certificate
(3year&5year), REPO and REVERSE REPO,US Dollar Premium bond, US dollar investment
bond, Wages Earners Development bond in the capital market of Bangladesh. Like in any other
countries, a well-developed tradable bond market is critical to ensure stability and efficiency of
the financial market in Bangladesh. An efficient bond market is important for managing public
debt and bank liquidity and for efficient conduct of monetary policy. So far the bond market has
played a limited role in the economy. The country’s financial sector is dominated by the
commercial banks.

1.2 Objective of the Study:

 To know about Financial products of capital market in Bangladesh
 To know about the analysis of Financial products of capital market
 To know about impact of the Financial products of capital market in Bangladesh
 To Evaluate the status of Financial capital market in the Bangladesh
 To Identify the Problems of Financial products of capital market in Bangladesh

Page | 8
1.3 Methodology of the study:
To prepare this report, standard methods of report writing have been used. As I was not directly
involved with the organization, so I was unable to collect the data from the primary sources.
Therefore, Data are collected from secondary sources. Every now and then I tried to talk to
different officials to find out relevant facts even in unofficial manners. And talking about
secondary source I have used to the fullest extent possible. The sources of data details are given
below

Secondary Sources:

 Websites of the Bangladesh Bank

 Recent articles and news related on this field
 Self-observation
 Significant data from the Internet.
 Textbook.
 Online Article

1.4 Limitations:

First of all, during the preparation and finalizing the report I have faced with a number of
problems such as:

 Unconfirmed accuracy of certain information acquired.

 Lack of information from the primary source.
 The comparisons may not be effective enough.
 Lack of time for preparing the term paper.

Page | 9
Chapter Two- Introduction of the study

2.1 Capital market

2.1.1 Types of Capital market

2.2 Financial products

2.3 Types of Financial products

2.4 Financial product of Capital Market

Page | 10
2.1 Capital market:
Definition: Capital market is a market where buyers and sellers engage in trade of financial
securities like bonds, stocks, etc. The buying/selling is undertaken by participants such as
individual’s institutions.

Description: Capital markets help channelize surplus funds from savers to institutions which then
invest them into productive use. Generally, this market trades mostly in long-term securities.
Capital market consists of primary markets and secondary markets. Primary markets deal with
trade of new issues of stocks and other securities, whereas secondary market deals with the
exchange of existing or previously-issued securities. Another important division in the capital
market is made on the basis of the nature of security traded, i.e. stock market and bond market.

Functions of Capital Market

 Mobilization of savings to finance long term investments.

 Facilitates trading of securities.
 Minimization of transaction and information cost.
 Encourage wide range of ownership of productive assets.
 Quick valuation of financial instruments like shares and debentures.
 Facilitates transaction settlement, as per the definite time schedules.
 Offering insurance against market or price risk, through derivative trading.
 Improvement in the effectiveness of capital allocation, with the help of competitive price
mechanism.

Page | 11
2.1.1 Types of Capital Market:
Capital Market refers to facilities and institutions arrangements through which long-term funds;
both debt and equity are raised and invested. The Capital Market consists of development banks,
commercial Banks and stock exchanges. The Capital market can be divided into two parts (a)
Primary Market (b) Secondary Market

Primary Market

The most important type of capital market is the primary market. It is what we call the new issue
market. It exclusively deals with the issue of new securities, i.e. securities that are issued to
investors for the very first time.

The main function of the primary market is capital formation for the likes of companies,
governments, institutions etc. It helps investors invest their savings and extra funds in companies
starting new projects or enterprises looking to expand their companies.

The companies raise money in the primary market through securities such as shares, debentures,
loans and deposits, preference shares etc. Let us take a look the various methods of how new
securities are floated in the primary market.

Page | 12
Methods of Raising Funds

1] Offer through Prospectus

This is a method of public issue. It is also the most used method in the primary market to raise
funds. Here the company invites the investors (general members of the public) to invest in their
company via an advertisement also known as a prospectus.

After a prospectus is issued, the public subscribes to shares, debentures etc. As per the response,
shares are allotted to the public. If the subscriptions are very high, allotment will be done on
lottery or pro-rata basis.

The company can sell the shares directly to the public, but it generally hires brokers and
underwriters. Merchant banks are another option to help out with the process, especially Initial
Public Offerings.

2] Private Placement

Public offers are an expensive affair. The incidental costs of IPO’s tend to be very high. This is
why some companies prefer not to go down this route. They offer investment opportunities to a
select few individuals.

So the company will sell its shares to financial institutes, banks, insurance companies and some
select individuals. This will help them raise the funds efficiently, quickly and economically.
Such companies do not sell or offer their securities to the public at large.

3] Rights Issue

Generally, when a company is looking to expand or are in need of additional funds, they first
turn to their current investors. So the current shareholders are given an opportunity to further
invest in the company. They are given the “right” to buy new shares before the public is offered
the chance.

This allotment of new shares is done on pro-rata basis. If the shareholder chooses to execute his
right and buy the shares, he will be allotted the new shares. However, if the shareholder chooses
to let go of his rights issue, then these shares can be offered to the public.

4] E-IPO

It stands for Electronic Initial Public Offer. When a company wants to offer its shares to the
public it can now also do so online. An agreement is signed between the company and the
relevant stock exchange known as the e-IPO.

Page | 13
Secondary Market

Definition: Secondary market is the market where previously issued securities, such as stocks and
bonds, are traded among investors. It is also the market where investors buy securities from other
investors, and not from the issuing organization. The sale proceeds from the secondary market
go to the investor, and not the issuing company. A primary market, on the other hand, is the
place where the securities are given by the issuing organization for the first time and the
proceeds go towards the capital of that organization.

Description: After the primary market is the secondary capital market. This is more commonly
known as the stock market or the stock exchange. Here the securities (shares, debentures, bonds,
bills etc.) are bought and sold by the investors.

The main point of difference between the primary and the secondary market is that in the
primary market only new securities were issued, whereas in the secondary market the trading is
for already existing securities. There is no fresh issue in the secondary market.

The securities are traded in a highly regularized and legalized market within strict rules and
regulations. This ensures that the investors can trade without the fear of being cheated. In the last
decade or so due to the advancement of technology, the secondary capital market in India has
seen a great boom. With primary issuances of securities or financial instruments, or the primary
market, investors purchase these securities directly from issuers such as corporations issuing
shares in an IPO or private placement, or directly from the federal government in the case of
treasuries. After the initial issuance, investors can purchase from other investors in the secondary
market.

The secondary market for a variety of assets can vary from loans to stocks, from fragmented to
centralized, and from illiquid to very liquid. The major stock exchanges are the most visible
example of liquid secondary markets - in this case, for stocks of publicly traded companies.
Exchanges such as the New York Stock Exchange, NASDAQ and the American Stock Exchange
provide a centralized, liquid secondary market for the investors who own stocks that trade on
those exchanges. Most bonds and structured products trade “over the counter,” or by phoning the
bond desk of one’s broker-dealer. Loans sometimes trade online using a Loan Exchange.

Products of Secondary Market

Following are the main financial products/instruments dealt in the Secondary market which may
be divided broadly into Shares and Bonds: Shares:

o Equity Shares: An equity share, commonly referred to as ordinary share, represents the
form of fractional ownership in a business venture.
o Rights Issue/ Rights Shares: The issue of new securities to existing shareholders at a ratio
to those already held, at a price. For e.g. a 2:3 rights issue at tk125,

Page | 14
 o Bonus Shares: Shares issued by the companies to their shareholders free of cost based on
the number of shares the shareholder owns.
o Preference shares: Owners of these kind of shares are entitled to a fixed dividend or
dividend calculated at a fixed rate to be paid regularly before dividend can be paid in
respect of equity share. They also enjoy priority over the equity shareholders in payment
of surplus. But in the event of liquidation, their claims rank below the claims of the
company’s creditors, bondholders/debenture holders.
o Cumulative Preference Shares: A type of preference shares on which dividend
accumulates if remained unpaid. All arrears of preference dividend have to be paid out
before paying dividend on equity shares.
o Cumulative Convertible Preference Shares: A type of preference shares where the
dividend payable on the same accumulates, if not paid. After a specified date, these
shares will be converted into equity capital of the company.

Functions of Secondary Market

 Favorable climate for growth of primary market

 Widening of investment opportunities for the investor
 Improving availability of resources for the business enterprises.
 Buoyancy in new issues.
 Increasing confidence among the players of the market

Types of secondary market:

EXCHANGES

It is a marketplace, wherein there is no direct contact between the buyer and the seller, like
NYSE or NASDAQ. There is no counterparty risk as an exchange is a guarantor. Also, heavy
regulations make it a safe place for investors to trade securities. However, investors face a
comparatively higher transaction cost due to exchange fees and commission.

OVER-THE-COUNTER (OTC) MARKETS

It is a decentralized place, where the market is made up of members trading among

themselves. Foreign exchange market (FOREX) is one such type of market. There is more
competition among the participants to get higher volume, so prices of security may vary from
seller to seller. Also, OTC markets suffer from counterparty risk as parties deal with each other
directly.

Page | 15
PRICING IN SECONDARY MARKETS

In the primary market, the price of a security is set beforehand. However, in the secondary market, the
price of a security is determined by its supply and demand. For instance, if most of the investors believe
that the stock would gain going ahead, the demand for that stock goes up, and hence, its price. Similarly, if
investors feel the stock will lose value, they will want to sell it, resulting in a price drop.

It is a good indicator of a country’s economic condition. A rise or drop in the stock market
suggests a boom or recession in an economy.

It helps in valuing a company as economic forces of supply and demand determine the prices.

Ensures liquidity for the investors as one can easily buy or sell the securities.

It gives investors a chance to use their idle money to earn some returns.

Page | 16
2.2Financial product:
Financial products refer to instruments that help you save, invest, get insurance or get a
mortgage. These are issued by various banks, financial institutions, stock brokerages, insurance
providers, credit card agencies and government sponsored entities. Financial products are
categorized in terms of their type or underlying asset class, volatility, risk and return. Securities
and investments created to provide buyers and sellers with short term or long term financial
gains are known as financial products. These allow liquidity to circulate in an economy and risk
to be spread. Many of the financial products are in the form of contracts that you can negotiate
on financial markets. The contracts stipulate cash movement at present and in future, depending
on conditions stated.

Financial products can help us grow the amount of money we have to meet various financial
goals, such as retirement, children’s education, marriage and so on.

Before invest in any financial product, should learn about any potential risks, limitations, costs as
well as other characteristics of the products.

Page | 17
2.3 Types of Financial products:
The number of financial products and services has increased multifold. It requires a lot of
patience and skill to pick up the best suited option from this huge list of financial products
available with us. Here are some of them:

Shares: These represent ownership of a company. While shares are initially issued by
corporations to finance their business needs, they are subsequently bought and sold by
individuals in the share market. They are associated with high risk and high returns. Returns on
shares can be in the form of dividend payouts by the company or profits on the sale of shares in
the stock market. Shares, stocks, equities and securities are words that are generally used
interchangeably.

Bonds: These are issued by companies to finance their business operations and by governments
to fund budget expenses like infrastructure and social programs. Bonds have a fixed interest rate,
making the risk associated with them lower than that with shares. The principal or face value of
bonds is recovered at the time of maturity.

Treasury Bills: These are instruments issued by the government for financing its short term
needs. They are issued at a discount to the face value. The profit earned by the investor is the
difference between the face or maturity value and the price at which the Treasury bill was issued.

Options: Options are rights to buy and sell shares. An option holder does not actually purchase
shares. Instead, he purchases the rights on the shares.

Mutual Funds: These are professionally managed financial instruments that involve the
diversification of investment into a number of financial products, such as shares, bonds and
government securities. This helps to reduce an investor’s risk exposure, while increasing the
profit potential.

Certificate of Deposit: Certificates of deposit (or CDs) are issued by banks, thrift institutions
and credit unions. They usually have a fixed term and fixed interest rate.

Annuities: These are contracts between individual investors and insurance companies, where
investors agree to pay an allocated amount of premium and at the end of a pre-determined fixed
term, the insurer will guarantee a series of payments to the insured party.

NPS: National Pension System (NPS) is a voluntary, defined contribution retirement savings
scheme designed to enable the subscribers to make optimum decisions regarding their future
through systematic savings during their working life. NPS seeks to inculcate the habit of saving
for retirement amongst the citizens.

Page | 18
CORPORATE FIXED DEPOSITS:

There are various companies which offer Fixed Deposits and the rates on offer are generally
higher than the rates offered by Banks. These instruments can be considered based on their
rating, interest rates and the cash flows. The corporate fixed deposits are available for various
tenures with Interest being paid Monthly, Quarterly, Half Yearly, Annually or at Maturity.
Investors looking at regular cash flows and interested in fixed rate of interest can invest in these
deposits.

CAPITAL GAIN BONDS:

Capital gain bonds are another type of bonds available, where any person can avail exemption in
respect of long-term capital gains (arising from the sale of long term capital asset other than
equity shares and securities) if the capital gain is invested in Capital Gain bonds u/s 54EC. The
exemption will be the amount of capital gain or the amount of investment made, whichever is
less. Interest rate offered on these bonds is around 6% per annum.

Complex Financial Products

There are certain financial products that are highly complex in nature. Among these are:

1. Credit Default Swaps (CDS): Credit default swaps are highly leveraged contracts that are
privately negotiated between two parties. These swaps insure against losses on securities in case
of a default. Since the government does not regulate CDS related activities, there is no specific
central reporting mechanism that determines the value of these contracts.

2. Collateralized Debt Obligations (CDO): These are securities that are created by collateralizing
various similar debt obligations such as bonds and loans. CDOs can be bought and sold. The
buyer gains the right to a part of the debt pool’s principal and interest income.

CDS and CDO products played a major role in the financial crisis of 2008. During these troubled
times, CDO ratings reflected incorrect information on the credit worth of borrowers, concealing
the underlying risk in mortgage investments. Meanwhile, the size of the CDS market far
exceeded that of the mortgage market in mid-2007. Thus, when the defaults began to unfold
during the financial crisis, banks were not in a position to bear the losses.

One of the most significant factors to consider when choosing financial products is your risk
appetite. Risky investments are usually associated with higher returns than safer investments.
According to empirical data, shares usually outperform all other investments over the long term.
However, in the short term, shares can be extremely risky due to their random and volatile
nature.

Page | 19
2.4 Financial products of capital market
Equity

This refers to a stock or any other security that represents an ownership interest in a limited
liability company. Equity ownership in can be obtained through an Initial Public Offer (IPO), a
Rights Issue or through purchase through the Nairobi Securities Exchange.

Bonds

A bond is a debt instrument in which an investor loans money to an entity (typically corporate or
government) for a defined period of time at a variable or fixed interest rate. Bonds are used by
companies, municipalities, states and sovereign governments to raise money and finance a
variety of projects and activities. Owners of bonds are creditors of the issuer. There are two main
categories of bonds -

a) Treasury Bonds

Treasury bonds are medium to long-term debt instruments usually longer than one year issued by
the government to raise funds in local currency. Treasury bonds may be defined by the purpose,
interest rate structure, maturity structure, and even by issuer.

Treasury bonds are available in both the primary market (through auctions) and the secondary
market.

b) Corporate Bonds

These are long-term (at least one year and above) debt instruments issued by the private
sector. Issuers of this instrument target high net worth investors who understand technical
information about pricing, valuation, yields etc.

Loan Stocks & Preference Shares

Preference shares

These are shares of a company’s stock that rank higher in seniority, compared to ordinary shares,
with dividends getting paid out first to shareholders holding them before common stock
dividends are paid. In the event of bankruptcy, shareholders with preferred stock are have to be
paid from the bankrupt company’s residual assets first, before ordinary shareholders are paid.

Page | 20
Loan stocks

Loan stock are shares in a business that have been pledged as collateral for a loan. This type of
collateral is most valuable for a lender when the shares are publicly traded on a securities
exchange and are unrestricted, so that the shares can be easily sold for cash.

Collective Investment Schemes (CISs)

Collective investment schemes securities offered by a company under which, contributions made
by the investors, are pooled and utilized with a view to paying a return in accordance with
specific shared investment objectives that have been established for the scheme. Collective
investment funds thus group assets from individuals and organizations to develop a larger,
diversified portfolio.

In return for putting money into these funds, the investor receives shares or units that represent
their pro-rata share of the pool of fund assets. The unit price (also known as the net asset value
(NAV)) is dependent on the market value of the instruments in which the pool of money is
invested and therefore rises and falls. It is calculated daily.

Real Estate Investment Trusts (REITs)

Real Estate Investment Trusts are pooled investments typically designed to enable the investors
to benefit from investments in large-scale real estate enterprises. They invest in real estate
through property or mortgages.

Income Real Estate Investment Trusts (I-REITs)

This is a REIT that primarily derives its revenue from property rentals. It owns and manages
income generating real estate for the benefit of its investors. Distributions to investors are
underpinned by commercial leases. This means that income returns are predictable and generally
less volatile. I-REITs provide an instrument for investing in the real estate market offering both
liquidity and a stable income stream.

Page | 21
Derivative Instruments

As the name suggests, a derivative is a financial instrument whose value is derived from the
value of one or more underlying assets. Derivatives generally take the form of (legal) contracts in
which two parties agree to payoffs based upon the value of an underlying asset or other data at a
particular point in time. The main use of derivatives is to transfer risk. Derivatives can be based
on different types of assets such as commodities, equities (stocks), bonds, interest rates,
exchange rates, or indices Derivatives can either be traded over-the-counter (OTC) or on an
exchange. An Over the Counter transaction involves trades done directly between two parties
without any supervision of an exchange as opposed to trading on an exchange characterized by
standards and rules upon which the parties engage.

Private Equity Funds

Private equity funds invest and acquire equity ownership in private companies, typically those in
high-growth stages. These PE funds purchase shares of private companies or those of public
companies that go private, with a strategy to exit at the opportune moment. There are various
types of private equity firms, and depending on strategy, the firm may take on either a passive or
active role in the portfolio company. Passive involvement is common with mature companies
with proven business models that need capital to expand or restructure their operations, enter
new markets, or finance an acquisition,

Page | 22
Chapter Three- Introduction of the study

3.1 Financial Product development in Bangladesh

3.1.1 Number of product

3.2 Market development

3.2.1 Growth & development of Corporate Bond

Page | 23
3.1 Financial product Development in Bangladesh:
Historically, DSE started trading activities in 1976 with only 9 companies. In 1977, the ICB was
established in order to give institutional support to the stock exchange. In 1979, the first ICB unit
Fund came to the market. The SEC (Securities and Exchange Commission) is established in
1993 and CSE was established in 1995. The Central depository system was introduced in 2004.
The debenture, Treasury bond, corporate bond came to market in 1987, 2005, 2007 respectively.
No.of Products Now, only five categories of products are traded in the market. These are
common share, mutual fund, debenture, Treasury bond, and corporate bond which were
introduced in the market in 1977, 1980,1987,2005,2007 respectively.

3.1.1 Number of product:

Now, only five categories of products are traded in the market. These are common share, mutual
fund, debenture, Treasury bond, and corporate bond which were introduced in the market in
1977, 1980,1987,2005,2007 respectively.

The corporate bond and debenture market is regulated by the SEC although the market is small.
Fixed income securities first came into existence in 1987 with the floatation of debenture by two
companies. As on November, 2011, only eight debentures exist in the Dhaka stock exchange. No
new debenture was issued after 1999. Besides these, ten debentures already went to maturity.
The corporate bond market is not mentionable feature. Only three corporate bonds are trading in
the capital market. First corporate bond is floated in 2007 by the Islami bank Bangladesh limited
named as IBBL Mudaraba perpetual bond. Then in 2010, ACI zero coupon bond is introduced in
the market.

The primary market of government securities is regulated by the ministry of finance and
Bangladesh bank. The government securities are traded in two places -over the counter segment
and the organized segment at the stock exchange. The CDBL (Central Depository Bangladesh
Limited) provides the depository function for all securities including government securities and
corporate bond and debentures. The OTC (over the counter) segment of the secondary market in
the government securities is regulated by Bangladesh Bank while the stock exchange traded
segment is regulated by Securities and Exchange Commission (SEC). Primary dealer of
government securities are regulated by Bangladesh Bank. Trading of government treasury bonds
stated in December 2005 at DSE. As in November 2011, 221 treasury bonds are traded in the
market with the name of 5-years Treasury bond, 10-years Treasury bond, 15- years’ treasury
bonds, and 20- years’ Treasury bond. The common stocks are traded in DSE and CSE. The
Dhaka stock exchange started it operation in 1977 with only 9 companies’ share capital.
Presently as on November 2011, the numbers of common share are 232 in DSE which are
gradually increased. The numbers of companies issued share are 192,234,247,218 in 1995, 2000,
2005, and 2010 respectively. The Dhaka stock exchange introduced Mutual funds operation in
1980.Now, as on November 2011, the numbers of Mutual funds share are 37 in DSE which are

Page | 24
gradually increased. The numbers of Mutual funds are 1,3,9,10,15 in 1980, 1985, 1998, 2000,
and 2005 respectively.

3.2 Market Development:

Market development is the process of entering new markets to expand revenue and
reduce concentration risk. This involves identifying target and finding a way to sell to them.
Target markets are a flexible concept that can include factors like location, demographics,
customer, customer preferences and lifestyle. As target markets are diverse, so are strategies to
reach them. The following are common types of market development strategy.

Pricing

Implementing price structures and strategies to target a set of customers. For example, an airline
offers a May to June discount ticket plan for groups greater than 18 people for certain domestic
routes. This price strategy is aimed at attracting the large number of schools who take a school
trip in May and June.

Distribution

Developing new distribution channels to reach target customers where they shop including
physical and digital locations. For example, a brand of sunglasses that would like to sell to
snowboarders develops distribution agreements with snowboard shops.

Branding

Developing a new brand for products to reach a target market. For example, a manufacturer of
warm socks that creates a brand to appeal to snowboarders.

Promotion

Reaching a new target market with tailored marketing messages such as offers, promotional
videos and coupons.

Sales

Developing a pipeline of leads, opportunities and quotes to close sales with the target market.
For example, a software company that traditionally sells to large firms begins to target mid-sized
companies.

Page | 25
Product Development

Developing a new product for the target market. This can be an alteration of an existing product
such as warm socks that are designed with new colors and patterns to appeal to snowboarders.
Alternatively, it can be a major initiative that reinvents your business model or product line.

Page | 26
3.2.1 Growth & Development of Corporate Bond:
Development of Bond Market is pre-requisite not only for development of capital market, but
also for development of economy of any country (IOSC, 2002). Without a functioning bond
market, the monetary transmission processes of policy measures would be circumvented, and the
desired impact on the real economy cannot be fulfilled, which compromises the effectiveness of
monetary policy operations ( Mu, 2007). In post crisis Asia, the development of domestic bond
markets is increasingly seen as one of the key requirements to strengthen the financial sectors of
East Asian countries and to reduce their vulnerabilities to future financial crises (Fabella and
Madhur, 2003).Compared with neighboring countries such as India, Pakistan, Srilanka, Nepal
etc., the Bangladesh bond market is at the nascent stage and playing a limited role in its economy
(Bangladesh Bank, 2008). Like in any other country, a well-developed tradable bond market is
critical to ensuring stability and efficiency of the financial market in Bangladesh.

Table 1. Corporate bond and debenture

Year 2003 2004 2005 2006 2007 2008 2009 2010 x

No. of corporate
bond 8 8 8 8 9 9 9 10

and debentures

No. of unit of
corporate 0.41 0.41 0.41 0.41 3.41 3.41 3.41 4.75

bond and
debentures(ml)

Issued capital of 289 140 140 140 3140 3140 3140 4476

corporate bond and

debentures(ml)

Page | 27
 Growth in percent Comparative growth of market capitalization

350
300 Growth of Market
capitalization(%)of govt. bond
250
200 Growth of Market
150 capitalization(%) of corporate
bond
100
Growth of debentures(Market
50
capitalization)%
0
-50 2003 2004 2005 2006 2007 2008 2009 2010
Years

It is evident from the analysis of above figure that growth performances of both corporate bond
and debenture have been found ups and downs; and that of Treasury bond market, declining over
the study periods. This is substantiating the real debt market scenario of Bangladesh during study
periods.

Vol. 4, No. 5;
www.ccsenet.org/ijms International Journal of Marketing Studies 2012

Growth of Issued capitalyear to 48.44 0.00 0.00 2142.86 0.00 0.00 42.55

of corporate bond and year

debentures(ml) growth

Market 4165 2764 2969 3922

capitalization-Corporate

Bond

Value of 517.47 517.47 575.696 576 576 576 576 576

debentures(Market

capitalization)

Total market 517.47 517.47 575.696 576. 4741 3340 3545 4498 1475.13

capitalization of

corporate bond and

debentures

Page | 28
Growth of total market base 0 11.25 11.31 816.19 545.45 585.06 769.23

capitalization of year

corporate bond and 2003

debentures

Growth of total market year to 0 11.25 0.05 723.09 -29.55 6.14 26.88 105.41

capitalization of year

corporate bond and growth

debentures

Share of debentures to 0.53 0.23 0.25 0.18 0.08 0.05 0.03 0.0002 0.17

total market

Capitalization (%)

Share of Corporate bond 0.55 0.26 0.16 0.001 0.24

to total market

Capitalization (%)

Total share of corporate 0.53 0.23 0.25 0.18 0.63 0.31 0.19 0.0012 0.29

bond and debentures

Growth of Total share

of year to -56.60 6.96 -27.64 252.81 -50.00 -40.45 -99.36 -2.04

corporate bond and year

debentures growth

Growth of Total share

of base -56.60 -53.58 -66.42 18.49 -40.75 -64.72 -99.77

corporate bond and year

debentures 2003

Source: Dhaka Stock Exchange. www.dsebd.org/

Now we shall see the growth of the debenture market. From the table-1, it is shown that only 8
number of debenture with the 409000 units exist in the market. Average market capitalization is
tk.55, 85, 90,566. The total value (market capitalization), tk.576000000 continues for last five
years. The average growth of debenture (market capitalization) is 1.88% and the growth rate is
steady over the period. The share of debenture to total market capitalization is decreasing

Page | 29
continuously. The average market share is only 0.13%. The growth rate of debenture to total
capitalization is decreasing which is -34.66 % (average).

So, finally, it is said that there is no remarkable growth in the debenture and the market share is
very low.

Corporate bond

From the table-1, it is shown that the total units of corporate bond is 4.34 million market
capitalization is tk. 3812 million in 2010. The average growth rate is 8.43%. The share of
corporate bond to total capitalization is reducing continuously. The average market share is
0.226% which is insignificant to total capitalization. The growth rate of share to total capital is
negative. The average growth rate of corporate bond to total capitalization is -39.54%. So,
finally, we can tell from the appendix, the corporate bond market is very small.
www.ccsenet.org/ijms International Journal of Marketing Studies Vol. 4, No. 5; 2012

Table 2. Government bond (Government bond)

Page | 30
From the table-2, the total outstanding of Treasury bond is Tk.372.9 billion in 2009 and the
market capitalization is Tk. 357313 million in 2009. The average market capitalization is tk.
88826.77 million. The growth rate of market capitalization is decreasing trend. The share of
government bond to total market capitalization is 18.93 percent in 2009 and the average share of
government bond to total capital is 13.715%. The growth of share of government to total market
capitalization is slightly increasing.

Table 3. Common shares (Growth and Development of Share)

Source: Dhaka Stock Exchange. www.dsebd.org/

From the table-3, the total issued capital of share is Tk.216487 million in 2010 and the market
capitalization of share is Tk. 3001334 million in 2010. The average growth rate of issued capital
and market capitalization of share are 25.49 percent, 71.02 percent respectively. The average
percentage of share to total market capitalization is 87.72 percent. The growth rates of
percentage of share to total market capitalization are 8.18%, 6.24% in the year 2010, 2009
respectively but average growth is -1.679%.

Page | 31
Table 4. Development of mutual fund (Growth and Development of Mutual Fund)

Total no. of Mutual fund

Growth of Total no. of

Growth of Total no. of

Total no. of Mutual

Total marketcapitalization(ml)
Total issued capital of

Total market capitalization

marketcapitalizationofMutualfund(ml.)

capitalizationofMutualfund
marketcapitalizationofMutualfundml.()
Mutualfund(ml)
Mutualfund
Mutualfund

totalcapitalizationofMutualfund
totalcapitalizationofMutualfund
capitalofMutualfund(ml)

ofMutualfunds(ml.)
capitalofMutualfund(ml)

Growth of Total issued

Growth of Total issued
fund(ml)

Growth of Shares to
Shares to total
Growth of Total

Growth of Shares to
Growth of Total
Year

base year to base year to year to base

year year year year year year

2003 11 73.25 395 2003 growth 663.6 2003 growth 97586.61 0.68 growth 2003

2004 11 0 73.25 0 395 0 0 1046.2 57.66 57.66 224922.74 0.47 -21.49 -31.60

2005 13 18.18 161.25 120.14 735 86.08 86.08 1521.4 129.26 45.42 233542.94 0.65 18.63 2639.75

2006 13 0 161.25 0 735 86.08 0 1537 131.62 1.03 323368.00 0.48 -17.61 -30.10

2007 14 7.69 190 17.83 866 119.24 17.82 5232 688.43 240.40 753955.00 0.69 21.86 3115.10

2008 16 14.29 325 71.05 3116 688.86 259.82 15778 2277.64 201.57 1059530.00 1.49 79.52 118.99

2009 19 18.75 450 38.46 4816 1119.24 54.56 18064 2622.12 14.49 1887177.00 0.96 -53.20 40.76

2010 31 63.16 2075 361.11 21066 5233.16 337.42 43064 6389.45 138.40 3471109.00 1.24 28.34 82.44

X 107.96 99.85 0.83 8.01

Source: Dhaka Stock Exchange.www.dsebd.org/

From the table-4, the total issued capital of Mutual fund is Tk.21066 million in 2010 and the
market capitalization of Mutual fund is Tk. 43064 million in 2010. The average growth rate of
issued capital and market capitalization of Mutual fund are 107.96 percent, 99.85 percent
respectively. The average percentage of Mutual fund to total market capitalization is 0.83
percent. The growth rate of percentage of Mutual fund to total market capitalization is 8.01%.

Page | 32
The comparative share of products to total market capitalization is presented in figure

Share of Govt Share of Mutual

bond to total fund to market
market capitalization, 0.83
capitalization,
12.85
Share o
coporate bond
and debenture
to total market
capitalization , Shares to total
0.29 Market
capitalization of
share capital,
87.72

The average share of corporate bond &debentures and government Treasury bond, Share capital,
mutual funds to total market capitalization are 0.29% and 12.85%, 87.72%, 0.83% respectively.
The contribution of mutual fund, corporate bond and debenture are not significant. The market is
mainly share capital based. Now, the growth rates of products are compared with t-test

Page | 33
Table 5. Paired samples test

From the table 5, it is seen that the calculated value of t for the pairs 2 and 6 are -2.84, 2.62
respectively which are greater than the table value (2.13) of t at 5% significance level. It means
that the differences are significant. So, the growth of market capitalization of Treasury bond is
more than the growth rate of capitalization of share and corporate bond and debenture.

From the table -5, it is also observed that the calculated value of t of pairs 1, 3, 4, 5 are lower
than the table value (1.94). So, the differences are not significant. So, there are no significant
difference between the growth rates of market capitalization of share and mutual fund, share and
corporate bond, mutual fund and corporate bond.

Finally, it is said that the growth rate of government bond is more and significant.

Page | 34
Chapter Four- Swot Analysis

Page | 35
4.1 Swot Analysis of Capital market in Bangladesh (Dhaka stock exchange):
Definition

SWOT analysis is a framework used to evaluate a company's competitive position and to

develop strategic planning. SWOT stands for strengths, weaknesses, opportunities, and threats.
SWOT analysis assesses internal and external factors, as well as current and future potential.

A SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look at the strengths
and weaknesses of an organization, its initiatives or an industry. The organization needs to keep
the analysis accurate by avoiding pre-conceived beliefs or gray areas and instead focusing on
real-life contexts. Companies should use it as a guide and not necessarily as a prescription.

Advantages of SWOT Analysis

A SWOT analysis is a great way to guide business-strategy meetings. It's powerful to have
everyone in the room to discuss the company's core strengths and weaknesses and then move
from there to define the opportunities and threats, and finally to brainstorming ideas. Oftentimes,
the SWOT analysis you envision before the session changes throughout to reflect factors you
were unaware of and would never have captured if not for the group’s input. A company can use
a SWOT for overall business strategy sessions or for a specific segment such as marketing,
production or sales.

Page | 36
Swot Analysis of Dhaka stock exchange
Strength

 Holds Strong brand image in the country.

 The strongest networking throughout major cities in Bangladesh.
 Capable of providing single stop service offerings to all its branches.
 Exceptional professionalism and quality to provide its clients.
 Skilled and dedicated management team.
 Dhaka Stock Exchange has a solid trading infrastructure
 Dhaka Stock Exchange consistently provides services with expert advice
 Order execution promptly and accurately
 DSE provides support to assure total satisfaction according to the requirements
 Standard settlement and clearing process.

Weakness

Weaknesses of Dhaka Stock Exchange

 Fundamental problems in IPO pricing method. As a result, retail investors get more
benefit than the sponsors.
 Lack of surveillance over share price in the stock exchange. As a result, manipulation
takes place frequently.
 Need to improve guideline process for all types of investors.
 Weakness in the management committee decision making power which needs
decentralization.
 Improvement in the internal audit control system is mandatory.

Opportunities

Opportunities for Dhaka Stock Exchange

 Introducing brokerage houses in the district level will increase the traffic flows
 Introducing online trading will facilitate more to the investors and trader, will attract
more people to stock exchange
 Opening the Media and Call Centre to cater to the need for information will increase the
market efficiency
 Dhaka stock exchange has planned to arrange investors’ awareness programmed
 Major Stock Exchanges from different countries have been visiting and sharing
experiences. If utilized properly, it will increase the efficiency to the development of
Bangladesh Capital Market.

Page | 37
Threats

Threats for Dhaka Stock Exchange

o The imbalance between the supply and demand of shares keeps room for speculators to
manipulate the stock price which is the greatest weakness of Dhaka Stock Exchange.
o Currently, there is shortage of electricity, gas supply in the country. As a result investors
are de motivated to establish new investment in the major sectors like manufacturing
industries. By this, the national economy is being hampered. As a result DSE failed to
expand its market.
o SEC has serious adroit manpower shortage. With the current number of manpower the
market regulator is not capable of doing its activities with activities in the country’s
capital market.

Page | 38
Chapter Five- Findings

Page | 39
5.1Findings:
From the above brief discussion, following challenges comes to up about financial products of
capital market in Bangladesh.

Excessive demand for stock

To some extent, individual investors’ confidence increased significantly due to positive measures taken
by regulatory authorities for the developments of Bangladesh capital market. Thousands of new investors
(more than six thousands new BO account opened every day in CDBL) entered the market with millions
of Taka in cash since the beginning of 2009. Huge amounts of margin loans and direct investments by
commercial banks, NBFIs, and insurance companies from their own portfolio have contributed to
the excess liquidity that has been reflected in the daily turnover. With the liquidity glut, share
prices are also on the rise, as excess liquidity increases demand. On the other hand, new issues, right and
bonus shares alleviated only marginally the market supply situation. Given this supply constraint,
investors had no other option but to put funds on the existing stocks, most of which have become
over bought, as huge demand for shares beat scanty supply of securities.

High PER

The average PER of DGENI was the highest among the major regional stock exchanges. At the end of
June 2010, the PER on DSE reached to 24.1. Whereas the PER in India was slightly over 20, while the
ratio was 8 in Pakistan, 14 in Sri Lanka, 12 in Thailand, 16 in Malaysia, 19 in Hong Kong and 14 in
Singapore. The reason behind the higher PER on DSE is mainly a mismatch between demand and supply.

Inactive bond market

Among the total listed securities (company, mutual fund, Govt. Treasury Bond-TB, corporate
bond and debenture), only companies and mutual funds’ shares are traded on the floor;
TBs and the debentures were never traded on the floor, meaning it is an inactive bond market.

The limited number of listed securities

The limited number of listed securities has always been a constraint on improving the liquidity
and market capitalization of the stock market. The main impediments include an inefficient
pricing mechanism, issuer’s concerns over poor corporate governance, and high listing costs. For
primary market development, the IPO approval process, pricing methods, and the capacity of
merchant banks need to be improved. Mechanisms that facilitate securities transactions in the
capital market, such as securities borrowing and lending, need to be introduced.

Market participants
Including brokers, dealers, and merchant bankers, require a license to trade from the SEC.
However there are no professional standards and minimal qualification requirements (e.g.,
examinations and professional training) imposed by the SEC or the exchanges on any of the
intermediaries. To strengthen governance and the quality of market intermediaries, an
examination and minimum qualification standards need to be introduced as a prerequisite for
licensing by the SEC. Only qualified and duly licensed personnel should be al-lowed to deal with

Page | 40
the public in transactions involving securities. Currently, there are no institutions in Bangladesh
which offer courses specifically related to the functions and regulation of financial
intermediaries.

Capital market is expanding

Bangladesh capital market is expanding, but the supply side remains poor in comparison with the
growing demand of the investors. Thus, in DSE and CSE, there is inadequate supply of stocks
and securities with good fundamentals, and corporate and government bonds are in short supply.

Slow growth of institutional investments

The stocks of slow-growth companies are just what the name implies. These are companies that
have increased their sales and earnings over at least three years, but at less than the rate of GDP
(gross domestic product) growth. Slow growth of institutional investments including mutual
funds, pension funds and professional portfolio managed fund

Public awareness

The measures have to be implemented immediately and should include strong public
pronouncements urging common people not to come to the stock market in the near term until the
situation stabilizes

Despite various measures taken by the SEC, there are still some identified structural weaknesses
of the capitalmarketofBangladeshthathinderitsoveralldevelopment.Someofthekeyweaknessesare:

 Lack of enforcement with the compliance of rules and regulations

 Corporate governance—sponsor-owners are managing the firm. In al-most all cases, no
professional managements are hired to run the affairs of the listed company.
 Lack of ethical orientation, education about capital & securities markets.
 Lack of trust, self-respect amongst interest groups. These are important preconditions for
building up a healthy and investment friendly market atmosphere.
 Lack of potential securities and narrow options for the investors.
 Disclosure problem-inadequate disclosure, concealment of facts or some-times fabricated
disclosures appear in the annual reports.
 Infusion of fake shares.
 Exaggerated projection in prospectuses.
 Credit facilities are inadequate and interest rates are exorbitant.
 Problem of rebuilding the image of presently depressed market

Page | 41
Chapter Six- Problems & Suggestions

Page | 42
6.1Problems & Suggestions:
Problems

The adoption of new legislative and regulatory measures and important issues involving the
control and distribution of financial products for cutting-edge expertise and strategic assistance
in the establishment of financial institutions and distribution networks for financial products. The
recent performance of the financial product of capital markets in Bangladesh, notably from
December 2016 till February of 2017, has been very poor compared with its performance over
the last five years. The index fell from a high of around 12000 points to 10,200 points, a drop of
almost 42 percent in just three months. Bangladesh capital markets have been in the top three
best performing markets in the world over the last three years. However, its recent performance
has cast a big doubt about its future performance. It is a case of “too much money chasing too
few stocks”. The problems of the financial products of capital markets in Bangladesh are
structural, and, actually quite far-reaching than what meets the eye. As we all know, the capital
markets here, notably the Dhaka Stock Exchange (DSE), is way overvalued due to, firstly, the
DSE index calculations being incorrect. Secondly, there are big syndicates acting together to
artificially influence the prices resulting in huge profits for them at the expense of the average
investors who put in their hard earned lifetime savings. And last, but definitely not least, is the
Securities and Exchange Commission (SEC) whose total policy and regulations favors’ the
syndicates which primarily consists of high net worth people and the stock exchange members
resulting in an “artificial demand driven market”. Until and unless these fundamental issues are
addressed the capital markets here will fail to see the light of the day.
So, if we look at the issues individually like the DSE Index, the syndicates, comprising of stock
exchange members and the SEC we can find the common link, which is the stock exchanges and
the SEC.

Suggestions

The capital market is not strong in Bangladesh. Stock exchanges are not functioning well due to
many constraints. Some recommendations to improve capital market in Bangladesh are given
below:

 Increase number of stock

 Bond Market Promotion
 Government should encourage about capital market products
 Have to increase Derivatives products
 Creating awareness among society so that people are encouraged to invest in the stock
market on the basis of the company merit.
 Providing loan convenient for the general people.
 The management of stock exchanges should be more efficient and effective.
 Developing and following strict rules and regulations of SEC.

Page | 43
 Using recent technologies to ease transactions.
 Increasing institutional investors.
 Enlarging number of members.
 Monitoring and regulating ensiles so that they follow the rules and regulations.
 Policy formulating and taking decisions speedily and implementation.
 Declaring the income from share market as tax-free.
 Attracting foreign investments by taking necessary actions.
 Automation in the transaction and keeping records of transactions.
 Emphasizing on privatization.
 Arranging adequate training for both investors and companies.
 Minimizing restrictions to increase the number of registered companies.
 Protecting fraudulence and speculation.
 The listed companies that pay regular dividend should be given tax incentives and tax
rebates as well.
 The mode of privatization of industries will be implemented through public issue of
shares. This will deepen the securities market, diffuse ownership and bring in market
disciplines.
 The government should off-load its equity holdings in SOEs and MNCs through stock
market. This will improve the supply of securities in the market.

 Bond market needs to be developed. The implementation of government securities with
medium-term and long-term maturities will also broaden the base of bond market.

 Establishment of a separate judicial security tribunal for dealing with cases related to
securities market.
 Disclosure of information to the public in the fullest possible dissemination system can
make the people aware about the latest situation.

 Prompt clarification or confirmation of rumors and reports that may likely to have an
effect on the trading of securities or would likely to have a bear-in on investment
decision.
 The companies concerned must refrain from disclosure like exaggerated

Page | 44
Conclusion
The performance of existing financial products is an important issue in the capital market to
increase the new products for reducing the risk of dependency on common stocks. There are only
five products are traded including three types of bonds. The average growth rate of market
capitalization of common stocks, treasury bonds, mutual funds, corporate bonds & debentures
are 71.02%, 124.74%, 99.85% and 105.41% respectively. The growth of market capitalization of
all products is high. The share of common stocks, treasury bond, corporate bond, debentures,
mutual funds to total market capitalizations are 87.73%, 12.25%, 0.24%, 0.17% and 0.83%
respectively. So, the market is common stock based. The government bonds are traded among
the institutional investors. The corporate bond market is very small. There is lot of scope in the
market for absorbing the new products. So, there should be increased new financial instruments
in the capital market to reduce the dependency on share only. The proposed financial instruments
are various types of preferred stock, bond, SWAP, option, futures, and forwards. There are lots
of research scopes in this field to study the products which will be effective for this market.

Page | 45
 References
1. Ahmad, Zahid et al. (2012). Stock market development and economic growth: A
comparative study of Pakistan and Bangladesh. African Journal of Business
Management, 6(8), 2985-2989. Retrieved from http://www.academicjournals.org/AJBM
2. B., McGuire Paul & John, D. Conroy. (2004). Fostering Financial Innovation for the
poor. FDC. Retrieved from jbao.atu.edu/Fall2008/Bepari,%20Mollik.doc
3. Chaudhury, M., & Miyan Allimullah. (2010). Development of Capital Market in
Bangladesh. Retrieved from
http://people.mcgill.ca/files/mohammed.chaudhury/CapMarketsBD.pdf
4. Chittagong Stock Exchange Ltd. (2004). CSE-30 Company Profile. Chittagong: CSE.
5. Dhaka Stock Exchange. (2011). Monthly Review, 26(5). Dhaka, Bangladesh: Dhaka
Stock Exchange Limited.
6. Fabella, R., & Madhur, S. (2003). Bond Market Development in East Asia: Issues and
Challenges. Asian
7. Development Bank, Manila: ADB.
8. Finance Ministry. (2017). Bangladesh Economic Review-2010. Dhaka: Economic Wing.
9. International Organization of Securities Commissions. (2002). The Development of
Corporate Bond Markets in Emerging Market Countries. May, USA.
10. Jahur, M. S. (2009). Development of Bond Market in Bangladesh: Issues, Status and
Policies. Portfolio, 3, July-
11. Kothari, C. R. (2005). Research Methodology. New Delhi, India: New age International
pvt. Ltd.
12. Levine, Ross & Sara Zervos. (2012). Stock Markets, Banks, and Economic Growth. The
American Economic Review, 88(3), 537-558.
13. Marshall John, F., & Vipul, K. Bansal. (2003). Financial Engineering. New Delhi,India:
Prentice Hall of India Pvt. Ltd.
14. Mu, Yibin. (2007). South Asia Bond Markets and Bangladesh. World Bank, Dhaka.
15. Mukherjee, A., & Faruqe, G. (2009). Capital Market in Bangladesh-Trend sand Practices,
Bangladesh
16. Securities and Exchange Commission. (2011). Annual Report 2009-10. Dhaka,
Bangladesh.

Page | 46