This Term Paper analyzed the securities market of Bangladesh during economic liberalization, financial control and structural coordination. The author argues that a powerful capital market is essential for collecting savings, flowing money into productive sectors and growth of industries, including privatizations.

Key highlights of the report

• Theoretical foundation of security markets and their role in economic development.
• Historical evolution of the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE).
• In-depth corporate profile of AB Securities Ltd. – one of the leading brokerage houses at that time.
• Financial analysis including income statement, balance sheet, and cash flow of ABSL (2010 data).
• Findings and recommendations on how to strengthen investor confidence and market infrastructure.

The Securities Market plays an important role in the economic development of any country. Capital market has gradually improved in Bangladesh and contributes to the growth of investment opportunities, capital structure and financial sector. This Term Paper Report highlights the structure, activities, problems and future prospects of the Bangladesh Securities Market.

The report says that the potential for capital market in Bangladesh is much higher. But the market has low liquidity, transparency deficit and the confidence of ordinary investors has not yet been fully formed. The author emphasized that strict control of the Securities and Exchange Commission (SEC), launching modern trading systems and increasing participation of institutional investors is important.

This term paper is also important for students in 2026. Because it gave a clear idea of the initial development of Bangladesh’s capital market after 2010.

The main points of the report are summarized in this blog post. It provides useful information for students, researchers and interested in finance. In addition, a full report PDF download has been given the opportunity to read in detail.

Summary of the Term Paper

This report, titled “Securities Market in Bangladesh”, analyzes the current structures, activities and problems of the capital market in the country. It shows that a strong securities market plays an important role in ensuring economic growth and financial stability.

Key Highlights

• Securities market connects investors (excessive money parties) and business institutions (parties with deficit).

Bangladesh has two main stock exchanges:

1. Dhaka Stock Exchange (DSE)
2. Chittagong Exchange (CSE)

This market is controlled by the Securities and Exchange Commission (SEC).

• A well-functioning stock market improves:

• Capital allocation
• Liquidity
• Investment opportunities

The report also mentioned some major problems, such as lack of trust for investors, weakness of control system and limited depth of the market. But the report emphasized that if it can ensure proper reform and transparency, the market has a strong growth potential.

Organizational Overview: AB Securities Ltd. (ABSL)

AB Security Limited (ABSL) is a leading brokerage and investment management company in Bangladesh. It is a fully owned company of AB Bank PLC. The company was founded in 2009 and started operations in 2010. Its head office is located in Motijheel, Dhaka. ABSL offers various financial services including share trading, portfolio management and investment advice for individuals, institutional and foreign investors.

About 500–1000 professionals work in the company, including brokers, analysts and support staff. ABSL activities efficiently operate due to skilled manpower and strong management structure and ensures customers quality service. AB Bank PLC’s strategic direction strengthens the company’s financial stability and credibility in the market.

Key facts about ABSL

• The company was registered as a private limited company in December 2009.
• In August 2010, the transfer of brokerage business at the Arab Bangladesh Bank Foundation (ABBF).
• It is a corporate member of Dhaka Stock Exchange (Member No. 201) and Chittagong Stock Exchange (Member No. 101).
• The company operates through these three branches of Dhaka, Chittagong and Sylhet.
• There are about 4,000 clients (native person, organization, expatriate Bangladeshi and foreign investors).
• It also serves as an agent broker of AB Investment Limited.
• Registered Office: WW Tower (Level-6), 68 Motijheel Commercial Area, Dhaka-1000.

The company contributes significantly to the economy of Bangladesh. It simplifies investments, helps in capital formation and increases financial inclusion through digital services. Over time, ABSL has gained continuous growth, created strong client base and launched modern trading system.

The company is currently focusing on digital transformation, expanding the new investor network and improving investment advice services. Through this, ABSL is working to strengthen its position in the growing capital market of Bangladesh.

• Corporate vision: To create value for customers, shareholders, employees and society, ensuring value creation for coordinated financial services.
• Corporate Mission To be a specialist in wealth creation by applying innovative expertise for the benefit of clients, shareholders, and staff. ABSL believes it prospers only when its clients prosper.

Core Services Offered

• Stock broking (cash & margin accounts)
• Portfolio Management Service (Discretionary & Non-Discretionary)
• Advisory services (research reports, IPO analysis, company/industry/economy research)
• Investment in IPOs, Mutual Funds, and Bonds
• Margin loan facilities

Updated Financial Performance Snapshot of AB Securities Ltd. (2024 vs 2023)

Particulars	2024 (Tk. mn)	2023 (Tk. mn)	Change
Operating Income	132.77	109.98	+20.7%
Operating Profit	66.36	40.19	+65.1%
Net Profit after Tax	1.08	0.76	+42.1%
Earnings Per Share (EPS)	0.04	0.03	+33.3%
Total Trade Turnover (Billion Tk.)	22.65	24.85	-8.9%
Number of Clients	3,320	3,200	+3.75%

Source: AB Bank PLC Audited Annual Report 2024 Click (subsidiary notes & Annexure-L).

Performance Note (Q3 2025 – Unsaved): Financial data for the whole year of 2025 has not been published yet. But in a comprehensive report of half-year (January–June 2025) and Q3 (January–September 2025) showed that “Commission, Exchange & Brokerage” was lower than the same period in 2024.

The main company AB Bank PLC reported significant damage in 2025 (especially due to high provision of debt), but ABSL has continued to operate stalely as a brokerage subsidiary and has also maintained client growth. ABSL is still an active brokerage house in Bangladesh. It is working on retail, institutional, expatriate Bangladeshi (NRB) and foreign investors.

Information about Term Paper Report

Definition of a Term Paper

A term paper is an academic research paper written by students over a semester. It focuses on analyzing a specific topic using theoretical and practical knowledge.

Purpose of This Report

• Analyze the securities market in Bangladesh
• Understand real-world financial market operations
• Identify market challenges and suggest improvements
• Fulfill academic requirements of BBA program

Objectives of the Study

• Understand capital market structure
• Analyze financial performance and strategies
• Evaluate strengths and weaknesses of institutions
• Gain practical knowledge of stock market operations
• Develop analytical and research skills

Methodology

The report is based on secondary data sources, including:

• Annual reports
• Websites
• Research papers
• Newspapers and journals

Limitations

• Limited time frame
• Dependence on secondary data
• Lack of practical exposure
• Information constraints

Overview of Securities Market in Bangladesh

What is a Securities Market?

Securities Market is a platform where financial instruments such as share, bonds and debentures are traded. It makes it easier to flow money from investors to business organizations.

The Securities Market of Bangladesh plays an important role in collecting internal savings, supply of money in productive sectors and accelerating economic growth. Farhana Rahman’s 2013 term paper showed that strong capital market is essential to reduce dependence on industrial financing, privatizations and banking sector.

There have been significant changes in this market in the last 13 years. In early 2010, modernization began with automation and the launch of Central Depository System (CDS), and large regulators were reformed in 2025. Yet the market is still facing challenges such as unrest, liquidity crisis and trust deficit of investors.

Bangladesh has two demutualized stock exchanges:

• Dhaka Stock Exchange (DSE) – the main and largest market. It was founded in 1954 and renamed in 1964.
• Chittagong Stock Exchange (CSE) – Comparative Small Exchange, founded in 1995.

Although most securities are listed on two exchanges, a large part of trading volume and liquidity is centered on DSE.

Current market situation (according to the beginning of April 2026)

• DSE total market capitalization is about 6.78–7.88 trillion taka. At the end of 2025, it was about 6,782 billion rupees; little recovery was seen in the first quarter of 2026.
• Benchmark indicators DSEX is moving in about 5,200–5,465 points. It was 5,219.74 points on April 2, 2026.
• 2025 was challenging year – DSEX fell by about 6.7%, market capitalization decreased by about 9.9% and daily turnover by 17.5% to 5,214 million taka.
• About 357 companies actively traded on DSE.
• The main sectors are bank and financial institutions, pharmaceuticals, telecom, food and consumer products, fuel and engineering.
• Daily turnover is usually between 3,500–5,500 million taka, but it can reach more than 9 billion taka in the bull market.
• CSE is relatively small market, whose volume is usually less than 10% of DSE. The All Share Price Index is in about 14,500–15,600 points.

Major Developments Since 2013

• Now the entire market has launched full automation and is being used as T+2 setlement system standard.
• Retail, expatriate Bangladeshi (NRB) and foreign investors’ participation has significantly increased.
• New Instruments and Index are launched, such as DSE30 and various sector-based index.
• ESG (environment, social and rule), green bonds and commodity derivatives are increasing. In 2025, CSE began a feasibility study on this topic.
• Despite the market volatility of 2025, analysts expect the market to be gradually restored in the second half of 2026 due to policy stability and new listing.

Historical Background of Stock Market

The securities market in Bangladesh has a long history:

• 1954: Established as East Pakistan Stock Exchange
• 1976: Trading resumed after independence
• 1998: Automated trading system introduced
• 2004: Central Depository System implemented

Growth Trends

• Rapid expansion after 1990s liberalization
• Increased number of listed companies
• Rising market capitalization

Despite growth, the market still faces volatility and inefficiencies.

Portfolio Management Services

1. Discretionary Service

• Company manages investments
• Minimum investment required
• Long-term investment strategy

2. Non-Discretionary Service

• Investor makes decisions
• Company provides advisory support

Findings of the Report

The report identifies several important findings:

Strengths

• High growth potential
• Increasing investor participation
• Expanding financial services

Weaknesses

• Low investor confidence
• Regulatory inefficiencies
• Market volatility

Opportunities

• Privatization of state-owned enterprises
• Foreign investment
• Technological advancement

Threats

• Political instability
• Economic fluctuations
• Lack of transparency

Conclusion

The securities market in Bangladesh is still developing but shows strong potential for future growth. A well-functioning capital market is essential for economic development, industrial financing, and investment expansion.

However, several improvements are necessary:

• Strengthening regulatory frameworks
• Ensuring transparency
• Building investor confidence
• Expanding market infrastructure

With proper reforms and government support, Bangladesh’s securities market can become a strong pillar of the national economy.

Recommendations

Based on the report analysis:

• Improve regulatory monitoring
• Increase transparency in financial reporting
• Encourage new companies to list
• Expand investor awareness programs
• Develop modern trading infrastructure
• Promote foreign investment

Frequently Asked Questions

1. What is the Securities Market in Bangladesh?

Securities Market is a financial market where shares and bonds are traded. It helps the business to collect capital and gives investors the opportunity to gain.

2. What are the main stock exchanges of Bangladesh?

• Dhaka Stock Exchange (DSE)
• Chittagong Stock Exchange (CSE)

3. Why is Capital Market Important?

It collects savings to develop the economy, create investment opportunities and ensures proper use of resources.

4. What is the main problem of the shares market in Bangladesh?

• Lack of trust for investors
• Weak control system
• High volatility in the market

5. What is Term Paper Report?

Term Paper is an academic research report, where students analyze a specific topic in detail.