Performance Assessment of Demutualization of Bangladesh Stock Market

Abstract

Bangladesh is being considered the potential economic power in the world economic area. The demutualization of stock exchanges in Bangladesh is a great achievement for all related to capital market. November 21, 2013 is the date of Demutualization of Dhaka Stock Exchange(DSE) and Chittagong Stock Exchange(CSE). Demutualization basically refers to transition of a non-profit member owned exchange into for profit, investor owned organization. This study is intended to focus on the overview of demutualization, journey and purpose of demutualization in Bangladesh, performance of Bangladesh Capital market before and after demutualization the overall performance of demutualization in Bangladesh Stock Market, challenges associated with demutualization and some crucial recommendation for the better performance of demutualization in Bangladesh. Finally, the paper concludes that if demutualization works properly both DSE and CSE will be able to expand their business in other business areas and will be accountable to their shareholders for their performance.

Keywords: Demutualization, DSE, CSE