Recent Stock Market Crash and Government Initiatives

And Government Initiatives for stabilizing the merchandise Dear Sir hither is the write up on Analysis of Recent Stock Market chime in and Government Initiatives for stabilizing the trade which I give way alert as the requirement of completion of the ABA degree and the course BUS 498, Project Work. duration qualification the report I studied the reasons of roue securities industry disunify of Bangladesh during 2010-201 land disposal taken initiatives to stabilize the marketplace blank space. I have come to know a lot of things close to the practical scenario of the working groovy market in Bangladesh.The whole experience of this report writing enabled me to tie the AP between classroom learning in my academic study in the university and real life situations to a great extent. I thank you and the University for providing me such an opportunity. Sincerely yours, ACKNOWLEDGEMENT For helping to devising this project, at first, I would ilk to thanks the Almighty and My p atomic number 18nts. I am grateful to the employees of broker houses who helped me in collecting data and other prerequisite information for this report. I would too like to thank my friends and relatives for their supports.I would like to extend my respected appreciation to my teacher Md. Zulu Haze. His constant guidance and advice played the pivotal business office in making this report a success. He always gave me his suggestions that were crucial in making this report as f legal philosophyless as possible. The project report is prep ard to fulfill the partial requirement of the ABA program. Regarding the awaycome of this report, I would like to express my sincere gratitude, profound thankfulness and indebtedness to my honorable teachers of the Department of business concern Administration.I must take this opportunity to thank Dacha Stock Exchange for gravid me the opportunity to complete my project requirement ND gave me the chance to interpret my practicability in th e organizational atomic number 18na. Executive Summery This report is more or less identifying the causes behind the recent collapse of cap market in 2010-2011 and establishment initiatives regarding that. To identify the causes and effective initiatives requires plenty of time and informational resources. Due to shortage of that the report highlights on the principal areas of the topic. The whole report is divided into six chapters applications programme their own respective parts of the topic.Chapter one Contains the detailed information nigh the recent market crash n 2010-2011 and government initiatives for stabilizing the market. The chapter includes several(prenominal) segments such as origin of the report, background, rationale of the report, objectives of the study, scope and limitations. It describes the background of the capital market in our country in details. Chapter two report revealed the methods utilise in collecting the objectives of the report which are the c auses of the market crash and government initiatives regarding that. Primary and secondary data sources are used to complete this report.The chapter overlap the direct opinion and ideas of he investors and informational data from Journals, paper articles and websites of the capital markets about the catastrophic incident of the capital market. The third chapter of the report provides an detailed exposition about the capital markets of Bangladesh and its history, Dacha line of work exchange (DEEDS) and its boots, objectives and functions, Chitchatting depot exchange (CASE) and its vision, representation and objectives & an overview of Bangladesh securities and exchange commission (BASE) have been given consecutively.DEEDS is the present form of creator east Pakistan stock exchange. It is the largest capital market of the country. CASE is known as the pioneer of modern capital stock exchange in the country. The mission DEEDS & CASE is to create a successful well-organized and t ransparent market of international standard to facilitate the competent entrepreneurs to raise capital and hurry up industrial growth for overall benefit of the economy. So that Bangladesh give the gate be a perfect investment ground for the domestic and contradictory investors.The prime objective of the DEEDS & CASE is to create a nation-wide stock market also beyond the national boundary. The activities of DEEDS and CASE are regulated by the Bangladesh securities exchange omission. Beechs mission is to protect the interests of securities investors, developed and kept up(p) fair, transparent and efficient securities markets, ensure proper issuance of securities and compliance with securities laws. This chapter discusses intricately about these topics. Chapter four raises the detailed discourse about the capital market crash in 2010-2011.It highlights the December 2010 and January 2011 separately to explain the exact situation before, during and after the capital market collaps e. There was an extreme dis wander among the investors and law enforcers in the street. The government, regulatory bodies and BASE took immediate steps to minimize the losses of the investors and regain the stability of the capital market. A committee of four members had been organize to find out the reasons behind the catastrophic incident.The committee submitted the report identifying the reasons which are role of market regulators and their employees, demutualization of exchanges, uniform face value of shares, trade in pre-pip placement, misuse of omnibus accounts, faulty asset revaluation, irregularities in book structure method, miss of knowledge of small investor, December closing of financial institutions, nonparallel ND artificial trading, issue of right and preference shares, suspicious feat of top players, block placement and direct listing.The fifth chapter of the report explains the necessary steps taken by the government to overcome this recent mishap in stock ma rket.In order to bring stabilization in the capital market government has taken some initiatives such as increase the merging loans,relaxing the maximum limit of merchant banks investment starting gauze system once again,altering mutual fund rules, introducing circuit breaker on the capital market index ,enforcing disciplinary measures against illegal activities,reviewing the transparency in transaction through Boo accounts etc. Chapter six consists of the recommendations which are declared to make the capital market more stable. He major recommendations are all the parties have to work perfectly, government understructure improve its guidelines for stock market, the decisions regarding the market should be taken considering behavioral psychology of the investors, in order to make the market more attractive, the corporate tax bracket can be lowered in order to encourage pompons to list their companies in the exchanges, the regulatory bodies frequently changing policy and rules tha t is not good for the market stability, at the initial stages of stock market development, appropriation of state own enterprises can make a signification contribution, regular TV and tuner program should be made on developments and other topics relating to the stock market to make the investors aware etc. The study has attempted to find out the major reasons for the recent stock market crash of Bangladesh in 2010-11 and role of different regulatory organizations including DEEDS, CASE, SEC and the government of the country. A number of reasons for the stock market crash have been identified. Though many causes were identified, few factors emerged stronger in the recent stock market crash.The causes includes over exposure of banks and financial institutions, unfortunate monitoring of regulators, corrupted employees of regulatory organizations, margin loan, direct listing, insider trading, book building, lack of general investors knowledge, imbalance of share and intervention of Ban gladesh Bank. Other reasons, mentioned in discussion section were also liable for the crash. It also tries to suggest regulatory organizations to take in the recommendations to stabilize the capital market more efficiently.