Performance Evaluation of Merchant Banking

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------------------------------------------------- Financial and Capital Market of Bangladesh The financial sector in Bangladesh comprises the money and capital markets, insurance and pensions, and microfinance. In addition to the Bangladesh Bank—the central bank of Bangladesh— there are 4 state-owned commercial banks (SCBs), 5 state-owned specialized banks, 30 domestic private commercial banks (PCBs), 9 foreign commercial banks, and 29 nonbank financial institutions (NBFIs) as of 2008. Figure 1 below depicts the nature of the financial sector in Bangladesh. The Capital Market Bangladesh has achieved stable growth over the last 9 years. It seems that the global financial crisis has not significantly affected Bangladesh…show more content…
On the other hand, in case of bonus issues, share holders receive the share certificates by mail. Bonus shares are issued within 60 days of reopening of share transfer register. The recent development of capital market: The role of capital market in financing private investment remained at a nascent stage in the context of Bangladesh. Banks and financial institutions disbursed BDT 96.5 billion as industrial term loans during FY06, whereas only BDT 1.7 billion was raised in the capital market through private placements and public offerings (BB Annual Report FY06). As of December, 2006 a total of 310 securities were listed at DSE comprising 255 companies, 13 mutual funds, 8 debentures and 34 treasury bonds as opposed to a total of 249 securities comprising 230 companies, 10 mutual funds and 9 debentures as of December 2001. Thus during the last five years only 54 new companies got listed in the DSE of which only three were listed by direct listing route, and the rest were listed by public offering. Total market capitalization of all listed securities in DSE, however, increased substantially (by around 130 percent) in 2004 to BDT 224.9 billion. At the end of December '06 it stood at BDT 323.4 billion. DSE market capitalization as share of GDP fell to 5.41 in June '06 from 6.06 in June '05. ------------------------------------------------- MERCHANT
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