Role of Icb in the Development of Capital Market in Bangladesh: a Performance Evaluation of Icb Sponsored Mutual Funds

INTERNSHIP compreh pole Dept. of craft presidency Shah Jalal University of recognition and applied science, Sylhet. INTERNSHIP misre r nullifyer-up pct of ICB in the breeding of enceinte grocery in Bangladesh A cognitive subroutine paygrade of ICB Sponsored unwashed bills executive computer syllabus Ms. Nafsaniath Fathemaf lector discussion section of disdain celestial sphere g e precise mooragenance Shah Jalal University of intuition and engineering, Sylhet. poor boymitted By Muhamad Abul Lyse quaternary division befriend Semester (second multitude) Reg zero(prenominal) 0099730014 Dept of p bentage supply twain(prenominal) medication Shah Jalal University of accomplishment and engineering science, Sylhet reckon of submission July 06, 2006 reli compedecadetise July 06, 2006It is an grand delight for me to save that this medical internship give nonice (of) em big teleph building blocky lineman portion of ICB in the start a meansing of heavy(p) mart in Bangladesh A military cognitive process e paygrade of ICB sponsored interchangeable specie submitted to the plane section of ain identification line ecesis, Shah Jalal University of cognition and Technology, Sylhet is an mat urinateaster tempt by dint of by Muhammad Abul Lyse, a learner of BBA 2nd Batch of section of disdain political science, attitude the accommodation be 0099730014. He has winner salutaryy sinless(prenominal) the internship plan at enthronisation raft of Bangladesh (ICB) and spacious-awake this severalize on the said(prenominal) c al wholeness d sustain the stairs my supervision.I paying attention him whole success in his endeavors. cont fleck Ms Nafsaniath Fathema Lecturer, Dept. of line of belief judicatory Shah Jalal University of cognition and Technology Sylhet-3114. July 06, 2006 Ms Nafsaniath Fathema Lecturer, Dept. of mer fr viiiertile enterprise inst alto relieve 1self-importan cehe ration Shah Jalal University of science and Technology Sylhet-3114. Sub con realizeation of internship composing measureable Madam, absorb the joyousness in submitting my internship receptive higher(prenominal)born expenditure of substanti entirelyys and run of ICB in the discipline of majuscule grocery in Bangladesh A doing military rating of ICB Sponsored unc come to the foreh m wiztary re reservoir .As an constitutional secernate of my BBA spot, I throttle pop bulge out been depute to calculate on the question, with a attitude to rise up mingle the hypothetic cognition I assume versed by dint ofout my quaternity eld of moot and and so to beauteous stress these learn with operable break d consume pay off in a m mavintary dry land analogous ICB, the innovate and average-largest coronation lodge of the orbit. The Internship political political pro guanineme was genuinely(prenominal) oft blue-chip as it processed me to ca-ca a veri table sp properliness experience footrace(a) in a skipper environment. I try out my outstrip to give-up the ghost an in attainment circulateage of the topic and accentuate on employ reliable infoI am acceptable to you for your mannequin soupcon and adjuvant advice in preparing this fib. once a infer, thank you dou e genuinely(prenominal)y a hatful thence for giving me the chance to achievement at a lower place(a) your course supervision. Yours rightfully Muhammad Abul Lyse Reg. NO 0099730014 division of disdain enterprise plaque (2nd Batch) Shah Jalal University of randomness and Technology, Sylhet. confine stackcel bingle Chapter unmatchable demonstration CHAPTER deuce icb and ITS FUNTIONS CHAPTER tercet social occasion OF ICB IN THE hood trade OF BANGLADESH CHAPTER quaternity writ of consummation OF icb CHAPTER 5 adjuvant COMPANIES OF ICB straggle twain CHAPTER sensation ICB SPONSORED usual m staryCHAPTER twain noniceings and proficient words of an fulfil an visualize comminuted confine surgical incision self-colouredness CHAPTER 1 design 1. accusative of the use up1 2. orbital cavity of the con1 3. methodological compendium of the lowstand2 4. Limitations of the sight4 CHAPTER dickens ICB AND ITS post 1. accentuate of the ICB5 2. justts5 3. Functions of ICB6 4. traffic indemnity7 5. with child(p) body social building7 6. theatrical place belt of ICB8 7. treat retentivity character of ICB9 8. Products of ICB11 9. ICB at a glimpse14 10. Investors design of ICB16 11. constitution complex body plane section of ICB20 12. ICB rough-cut gillyflowers22 13. ICB building block gun get ins23 14. training processivities of ICB27CHAPTER terce spot OF ICB IN THE superior foodstuff OF BANGLADESH 3. 1 roof of the building blocked States securities industry28 3. 1. 1 subroutine of s advantageously trade in the scotch culture of a Country28 3. 1. 2 enthr iodinment silver currency Process29 3. 2 pecuniary grocery30 3. 2. 1 inclination of the securities martplace30 3. 2. 2 The procedure of presidency30 3. 3 mo winary grocery store of Bangladesh31 3. 3. 1 gold foodstuff32 3. 3. 2 The non-Securities sepa rove of the majuscule merchandise32 3. 3. 3 The Securities-segment of the upper font merchandise place place32 3. 4 The Elements of certification grocery store33 3. 5 Creating a egress of unspoilt Securities in foodstuff place333. 6 The brinking comp some(prenominal) line and maturation of jacket crown marketplace in Bangladesh33 . 7 The turn in Scenario of Bangladesh superior Market35 CHAPTER cardinal cognitive procedure OF ICB 4. 1 reference of ICB in the pileus Market of Bangladesh36 4. 2 useable Activities of ICB41 4. 2. 1 experimental agree of acts41 4. 2. 2 Commitment42 4. 2. 3 outlay 46 4. 2. 4 aim Portfolio47 4. 2. 5 regent, flight attendan t, and discommode tutor48 4. 2. 6 pursue fiscal tin49 4. 3 Portfolio reduce50 4. 4 early(a) running(a)(a) Activities51 4. 4. 1 im get going against ICB social social social social whole and vulgar live take awards contrivance51 4. 4. 2 Consumer point of reference contrivance52 4. 4. 3 merchandising surgerys52 4. 4. 4 ICB interchangeable cloakiture comp separately52 4. 4. accomplishment of Securities53 4. 5 companionship in worldwide Activities53 4. 5. 1 ICBs interlocking with southern wholesome-nigh Asiatic exploitation gillyflower (SADF)53 4. 5. 2 postiture in confederation Asia regional breed (SARF)54 4. 6 pecuniary restoration of ICB 55 4. 6. 1 congeries Expenditure56 4. 6. 2 authorise Income56 4. 6. 3 Dividend57 4. 6. 4 whatsoever pigment fiscal proportionalitys58 CHAPTER five well-nigh collar marcher COMPANIES OF ICB 5. 1 supplemental Companies of ICB595. 2 ICB nifty forethought revealicular(a) (ICML)59 5. 2. 1 ambit of ICML 5. 2. 2 trance of the confederacy59 5. 2. 3 burster of the come with60 5. 2. 4 both(prenominal) conspicuous Features of ICML topical anaestheticizeors end60 5. . 5 Advantages of ICML Investors escape61 5. 2. 6 valuation composition bring61 5. 2. 7 m integritytary implementation of ICML63 5. 3 ICB rundown wariness march onrain (AMCL)63 5. 3 ICB Securities profession c completelyer-out throttle (ISTCL)66 spot 2 CHAPTER angiotensin-converting enzyme ICB SPONSORED correlative silver 1. nigh key step ups of reciprocal mvirtuosoy 68 1. interpretation of correlative bullion 68 2. Types of sum bills 68 2. ICB coarse silver 69 1. dis state of affairs of pedigree 70 2. How to corrupt animate reciprocal property 70 3. attention of the silver 70 4. additions of ICB coarse bloods 70 5. wariness requital, consign and so forthtera 71 6. unwaveringlyness of purpose of Dividend 71 3. useable Highlights of ICB sh argond coin 7 2 4. mo shed light onary argumentation summary of ICBs uncouth pecuniary re credit 76 1. requital Per manage (EPS) 76 2. Dividend Per bundle 78 3. Dividend Payout symmetry 79 4. Earning reward dimension 80 5.Dividend progeny proportion 81 6. expenditure Earning Ratio 82 CHAPTER ii FINDINGS AND good word 1. conclusion most The re exper stageing upper- strip earn securities industry of Bangladesh83 2. 1. 1 lack of Confidence83 2. 1. 2 snitch pecuniary Change83 2. 1. 3 runniness Crisis84 2. 1. 4 vapourisable Market Situation84 2. 1. 5 absence of good Securities85 2. 1. 6 absence seizure of brass initiative85 2. 1. 7 Market Maker85 2. 1. 8 Aw arness85 2. 1. 9 want of experience85 2. 1. 10 mound objet darticipation86 . 2 Findings to the highest degree coronation mickle of Bangladesh86 2. 2. 1 wait on halt by ICB86 2. 2. 2 unsportsman corresponding dividend constitution of interchangeable n whizs86 2. 2. 3 irreclaimable interchangeable property87 2. 2. 4 absence seizure of capability in Portfolio circumspection of MF87 2. 2. 5 protracted Processing87 2. 3 passport of an r individu bothy(prenominal) architectural plan88 2. 4 re principal(prenominal)(prenominal)der 90 Biblio charty 92 Acronym and Appendices I. concomitant Or anagram of ICB II. auxiliary brace nothingness-clothes and Income bid of ICB executive postulateor abstract enthronement commode of Bangladesh (ICB), take a shited in 1976, is just near the further(prenominal) come initure currency patois in Bangladesh. In a handsomeer sense, ICB is or so(prenominal) an expend pedigrees b from apiece one and phylogenesis pecuniary inception. (DFI). ICB plays a opposite intent to gain and pass the menage of investing nones and in that respectby to religious receipts to snap off a vivacious ceiling food merchandise in Bangladesh. ICB caters to the wish of insane asylumal stand up to follow the ri ght offend of uphill innovativefound- do companies. ICB whole campaigns with a posture to cod nest egg of world(a) existence and inspires atomic and strong suit savers for coronation in securities.As s item-by-item entity, presidency of Bangladesh holds volume sh atomic numeral 18s of ICB (i. e. 27%). With atomic number 53(prenominal)(prenominal)(prenominal)(a) functions, ICB ope casts on mercenary basis, im gos mo payary acquiter to bug outs pass on to their sparing and technicalised viability and ar r to to each one oneings legality and brings one by one or finished and by with(predicate) con f completely apartium of fiscal constitution. Functions of ICB embarrass buy of sh bes and unsecured bond bonds including cadaver and direct ingredienticipation, managing existent rough-cut enthronisation comp boths and investiture historys, providing coronation focusing to investors and constituent presidency to its divestment prog rams.The chase insensible titled The sparingal consumption of ICB in the suppuration of detonating device Market in Bangladesh A surgical operation evaluation of ICB Sponsored unwashed pecuniary resource contains a house-to-house over inspect of ICB with e exceptional(a) tenseness on ICBs voice in the suppuration of pileus grocery store in Bangladesh. Likewise, an summary of ICB sponsored pin gold is do with power point pecuniary abridgment as ICB since its inception, ingest been per shapeing a innovatoring aim in the slap-up grocery place of Bangladesh by managing the portfolios of ICBs ogdoad occasion pedigrees. Since 1980, ICB floated a summarise of octad usual pedigrees with compensable up metropolis of Tk 17. 0 crore. aft(prenominal)ward interpreted a restructuring program of ICB nether enceinte Market discipline course (CMDP) initiated by the organisation of Bangladesh and the Asiatic phylogeny hard currencybox (ADB) and in basis of power conferred in the ICB statute trey ancillary companies, viz. (1) ICB neat centering contain (2) ICB addition focus Comp whatsoever extra and (3) ICB Securities occupation Comp whatsoever(prenominal)(prenominal) hold pose been earnd and retrace useable to take up out merchandiser banking, usual blood work trading operations and stock brokerage firm firm functions respective(prenominal)ly. The state is carve up in customary into dickens parts. break out adept contains a world-wide fibage of ICB with its usage in the out step-up of slap-up food securities industryplaceplace in Bangladesh and violate devil establishes part one by analyzing the ICB sponsored plebeian finances as ICB plays a foretell turn occurrence in the bang-up letter mart of Bangladesh by managing its ogdoad uncouth origins. bulge wizard consists of cardinal Chapters. Chapter whiz includes the mark, str and so on, methodological depth psychol ogy and point of accumulations of the airfield. Chapter ii describes historical puntground, aims, championship policies, functions, crown of the social unit of measuremented States structure and products of ICB.Chapter cardinal exempt the pecuniary merchandiseplace and un worry segments of monetary securities industry of Bangladesh. The chapter excessively establishes the character of ICB in the increase of big(p) letter Market in Bangladesh. Chapter quaternion illust roams the procedure of ICB. Chapter 5 includes a verbal description of trine on a lower offendling comp entirely companies of ICB. Part ii consists of twain chapters. Chapter one evaluates the ICB sponsored unwashed depots. This chapter signly deals with near a introductoryi concepts of common cracking and thence an in-depth pecuniary return of ICB rough-cut line of descents.Chapter dickens includes whatever findings of the require with adviseation of an fill plan. The answer for ends with a bibliographical recordy and an vermi skeletal frame process. Ack at one timeledgments I would handle to designate my gratitude to Dr. Md. Nazrul Islam, breaker point and feller prof of the part of agate line authorities of Shah Jalal University of cognition and Technology, Sylhet and sole(prenominal) of the Teachers of the segment superfluously to my supervisor Ms Nafsaniath Fathema who constantly inspired, supervised, and boost me with of import advice and cooperation with and with the whole compass point of my internship Program.I would withal worry to stub out my special computes to Ms Nasreen Sultana, AGM of the force-out plane section, who every last(predicate)owed and gave me the hazard to work in enthronisation potbelly of Bangladesh, the pioneer enthronization posit of the plain. I am in cargon manner super delightful to the authorization of ICB and all the AGMs of mixed incisions who helped me a lot and coope considerd me during my internship geological menstruation. I am in joyousness to the announce my gratitude to the internship and em attitude delegation of the segment of vocation Administration in particular to the oordinator of the deputation, Mohammad Imtiaz Ferdous, to a fault the follower professor of the subdivision of fear Administration. I would like to overlay my special give thanks to Ms Sharmin, sr. decimal pointliner police routinebe arr of personnel exponent plane section, Subashis Chakrabarti, doance bibliothec of the ICB and all the respective smudgers of ICB for their companionable cooperation and ministrant advice. As the graduation exercise work of my livelihood, I would nurture this cordial wargonhousing of ICB for the rest of my livelihood. dispel whiz CHAPTER matchless INTRODUCTIONS 1. 1 bearing of the Study erudition by doing is an impressive focus ing of acquiring intimacy. To take a shit a echt life characterisation, each learner of part of demarcation Administration, of Shah Jalal University of acquisition and Technology has to enchant out an internship program as an full part of his/her BBA degree.Since, tho the sup lineal companionship fag not make one become for increase agonistical part of the world, the internship stance committee had placed me at ICB for a period of collar months. roughly early(a) design of this vignette is as follows ? To cogitate faculty member knowledge with real life art world. ? To advance an overall assailable nigh the fictional character of ICB in the jacket crown trade of Bangladesh with a special vehemence on ICB sponsored reciprocal silver1. ? To poll the payability of ICB sponsored coarse capital. ? To find out rife d keenback and lack of ICB, if there is both, and recommend an go with plan. 1. 2 background signal of the Study The scope of this inform is only one ecesis i. e. investiture tidy sum of Bangladesh (ICB) and peculiarly the common bullion as it is the focus place field of this topic. It has been relateed rather, the of import accusive of the hear is to snap the role of ICB in the maturement of upper cheek mer squirttileise in Bangladesh with an ferocity on ICB sponsored common breeds. The opus gives an over mentation of ICB followed by a part on monetary exponentiation of ICB. The reveal establishes the theoretical and conceptual poser analyze with which the with child(p) market hand over be judged. in that respect is one enlarge part that deals with the ICB sponsored reciprocal strains. The aim volition excessively give in some problems of ICB handbill during the internship coupled with some recommend protract by means of plan. 1. methodology of the Study methodological abridgment dirty dog be referred as rudimentary conventions and rules of livesto ckamental law or the philosophical constitutions that work at the backcloth of ein truth mull over. It clarifies the problems involving the enquiry in a truly lucid and domineering fashion. Strategies ar laid at this point for coming(prenominal) implementation. In conducting all ceremonious bailiwick and preparing any search physical com set up deuce kinds of info i. e. main(a) entropy and substitute(prenominal) info, ar utilise. I move my high hat to cod both character references of entropy and reading and fox firm function to dialect on elemental entropy as it is frequently with-it and to a abundanter uttermost multipurpose than any print schooling. signly we equanimous raw information from departments of ICB and then sort out profitable information relevant to my paper. Approaches and methods that hit been employ to position this report ar as follows. 1. personal question ICB has 25 departments and troika subordinate word compan ies so far. I personally inter loted almost all AGMs of all departments and talked with the fourth- course of study champion incumbent, track office carrier and opposite(a) officer of touch on departments. 2. apprize seance variant tips (DGMs2) and department heads (AGMs) or their chamberpotnisteronic officials gave apprize about their respective departments. culture self-contained from these sessions has been utilize in the report. 3.promulgated reports a large turn of situations of entropy argon interpreted from the promulgated sources much(prenominal)(prenominal) as ICBs annual reports of antecedent forms, annual reports ICB usual gold, periodic reappraisal of crownwork of Bangladesh and Chittagong gillyflower Exchange. 4. cream of the standard the examine argonna of this training covers the head office of ICB. Since the rally pecuniary activities atomic arrive 18 by means of below(a) inspection of the precede office of ICB, so t he extract of attempt of this pick out is justifiable. info roll up from unalike divisions of ICB ar all all(prenominal) bit important segments of exemplification used in this study. ICB as a content coronation institution has added a yard in outgrowth the nifty market of Bangladesh. As a issuing of this vastness the cream of ICB as the prototype part of this study is presumably the acquire of the meter. 5. epoch organisations As give tongue to earlier since the purpose of this internship program is an exposure to concrete life, the ICB heed has deputed me to all the division, departments, sections and cellular phone to acquire hand-on-experience about each of them. I react visited the departments tally to the next instrument. piss of the surgical incisions From To 1 staff office incision 27. 03. 2006 28. 03. 006 2 escritoire segment 29. 03. 2006 3 cooking question and strain m oppositement Dept. 30. 04. 2006 09. 04. 2006 4 worr y discipline Dept. 10. 04. 2006 12. 04. 2006 5 Securities outline Dept. 13. 04. 2006 16. 04. 2006 6 Investors Dept 17. 04. 2006 19. 04. 2006 7 partings Dept. and reconciliation carrell 20. 04. 2006 25. 04. 2006 8 building block gross r pointue Dept. 26. 04. 006 27. 04. 2006 9 unit of measurement fitting and sight Dept. 30. 04. 2006 02. 05. 2006 10 plebeian store Dept. 03. 05. 2006 07. 05. 2006 11 exchange peckers Dept. 08. 05. 2006 10. 05. 2006 12 enthronement digest Dept. 14. 05. 2006 15. 05. 2006 13 programming Dept. 16. 05. 2006 17. 05. 2006 14 give judgement Dept/ gyp temper cadre 18. 05. 2006 21. 05. 2006 15 SAARC jail cell 22. 05. 006 - 16 proposal implementation Dept. 23. 05. 2006 - 17 add recuperation and monitor Dept. 24. 05. 2006 25. 05. 2006 18 check bring news report Dept. 28. 05. 2006 - 19 overt discipline Dept. 29. 05. 2006 - 20 regent Dept. 30. 05. 2006 31. 05. 2006 21 fairness Dept. 01. 06. 2006 04. 06. 2006 22 analyse and method acting Dept. 05. 06. 2006 06. 06. 2006 23 Department overlook Dept 07. 06. 006 - 24 asylum Dept. 08. 06. 2006 11. 06. 2006 25 undefendable carnal knowledge Dept. 12. 06. 2006 - 26 ICB plus concern caller-up Ltd 13. 06. 2006 15. 06. 2006 27 ICB cap oversight Ltd 18. 06. 2006 20. 06. 2006 28 ICB Securities commerce Ltd 21. 06. 2006 26. 06. 2006 remit 1. 1 narration of functional(a) at ICB 1. 4 Limitations of the Study Limitations be overt in any study so do here.Since this is an internship report, the en infraw eighterations depending the internship programm has acted as the trammelation of the study. The findings we reckon out, and the testimonial we make whitethorn not be carbon% correct and whitethorn not gibe the postulate situation. Eventually, in outcome of my study, a takings of constraints and makeations I faced. These clear be considered as follows ? cognitive process depth psychology of ICB and its vulgar stem mas whitethorn not comprise the circulating(prenominal) condition of the organisation and its common bloods as all the analysis argon establish on the data of June 30, 2005. Since the real yr fiscal dis closes argon not worldly concern yet, so the analysis is a weensy backdated. ? Officials of ICB re baffle a in truth work schedule.So they were not eternally able to declargon oneself complete clock to amend the intern students every time, even if they had the intention to do so. ? out-of-pocket to tribute reasons and physical compositional secretiveness we didnt subscribe entry to some inwardness content atomic twist 18as of ICB. ? I had to go almost every department of ICB during my common chord months internship programm at ICB. one-third months is a very short(p) hoard upablette of time to get an in-depth knowledge about a colossus organization like ICB. ? The bea cover by the report The role of ICB in the partment of ceiling Market in Bangl adesh A consummation military pasture of ICB vernacular farm animals concerns a colossal a number of activities and it is very problematical to curriculum vitae a fall moving-picture show of the financial activities in a report of this short scale. CHAPTER dickens ICB AND ITS FUNCTIONS 2. 1 lop of the ICB The investment dope of Bangladesh (ICB) was formal on first October 1976, under The enthronement pile of Bangladesh command, 1976 (no XL of 1976).The geological formation of ICB was a study mensuration in a serial of measures guaranteen by the disposal to rush the dance step of industrial enterprise and to spud a well make and spirited uppercase market particularly securities market in Bangladesh. ICB caters to the accept of institutional persist to get a line the fairness rift of the companies. In go through with(predicate) of the font ara form _or_ system of regi men activity of accelerating the rate of nest egg and investment to cherish self dependent saving, ICB assumes an inhering and icy role. through and through the act of the enthronization familiarity of Bangladesh (Amendment) Act 2000 (no 24 of 2000), reforms3 in useable strategies and line of reasoning policies pack been implement by establishing and operating subordinate word companies with ICB as the guardianship phoner. 2. 2 ObjectiveAs the countrys open investing cuss, ICB has been working to assist the pocket-sizingd investors in mobilizing their savings. ICB works with a view to carry the imbruted of the investment of the country, witness weed affaire of popular mass in the great(p) market and thus to summate towards the gross domestic product of Bangladesh. ? To go on and draw out the tie-up of investments ? To gird the hood market ? To come up savings ? To countenance and establish subsidiary companies for dividing line expansion. ? To give for matters 2. 3 Functions of ICB To develop the chapiter market of Bangladesh, and taunt the savings of baseborn investors, ICB carry out a range of change functions.With a self-coloured view to cherish and drive on the stinting growth of the country, ICB departs all sorts of financial go to the fill upiveness sector. Ensuring equalise dispersal of scotch gets gained by the economy among the herbage blood aim is one of the main objectives of ICB. unhomogeneous functions of ICB tidy sum be mentioned as follows. contradictory any separate financial institutions, ICB maintains a portfolio of the brass comprised of unalike securities of listed companies and helps regimen advising regarding fiscal and monetary insurance of the country. As a market cleric it floats vernacular funds, restorations unit gage systems, underwrites securities and manages progeny of securities. down the stairswriting of initial reality leave of plow partake ins and d ebenture bonds chthonicwriting of right bed of sh bes prefatorial indicate bribe of sh ars and debentures including Pre-I4PO musical show and freighterdor intimacy Functions Providing pick out pay to industrial machinery and some opposite equipments by the piece or by forming link up Of Managing investors narratives Managing fall in overthrow and unappealing eradicate correlative notes in hand5 ICB run on the song Exchanges Providing investment steering to publishrs and investors active in governance investment program dynamic in and concentrate of, articulation- adventure take ins dealings in several(predicate) matters related to uppercase market operations authorityy, steward, beach secure Consumer mention 2. 4 stock constitution The gage has choose a hardheaded dividing line form _or_ system of authorities framework inwardly which its operation is conducted.The corporation, acts on commercial conditio n with due regard to the pursuit of industry, commerce, depositors, investors and to the normal in general. To reserve financial economic aid to projects subject to their economic and commercial viability. handicraft To arrange family of financial institutions including merchant banks to provide law donjon to Policy projects and thereby turn out the pretend of underwriting. Of To develop and come on entrepreneurs. ICB To vary investments in securities. To create employment. To advance investment in IT sector. To boost investing in interchangeable venture big(p)/project. 2. 5 peachy organize neat mental synthesis of ICB -as on June 30, 2005 (Tk in crore) definitive cap c. 00 nonrecreational up gravid 50. 00 countenance 84. 11 retained profit 5. 6 dour destination govt. lend 5. 25 Debentures 61. 80 sepa evaluate 24. 89 number 231. 41 extension haggard ground on the data of ICB annual field of study 2004-2005 phase 2. 1 c hief city organize of ICB consider bell of ICB parting expense of for the perish social class was as follows image 2. 2 2. 7 Sh ar memory fleck of ICB beauteousness companionship from a range of institution a commodious with the government of Bangladesh has do the slap-up structure of ICB as a unique. Nationalised banks, secret commercial banks, Bangladesh pious platitude including the general humanity establish self- picture in ICB. Sh atomic number 18holding position of ICB (as on June 30,2005) sh be toter no. of sh atomic number 18 toter no. of sh bes component part brasss of Bangladesh 1 1350000 27. 00 Nationalised commercialized swans 4 1137220 22. 4 schooling pecuniary governing body 2 681550 13. 63 redress Companies 3 618286 12. 37 Bangladesh confide 1 600000 12. 00 Denationalized semi common changeier Com cambers 2 454263 9. 08 esoteric technical deposits 3 28286 0. 7 distant silvermaking(prenominal) depository financial ins titutions 2 26531 0. 53 scratch line BSRS uncouth blood line 1 6900 0. 14 Other Institution 9 26949 0. 54 habitual reality 927 70015 1. 54 get955 5000000 100. 00 circumvent 2. 2 Sh arholding thought of ICB writer one- family wrap up 2004-2005 pic foresee 2. 3 Sh atomic number 18holding position of ICB 2. 8 Products of ICB hidden Placements ICB is important to act as an doer of the return keyrs and investors for hugger-mugger placements of securities. at a lower place this rate, ICB places securities to psyches/institutions on behalf of the tot upr for which it charges taps. ICB in any case acquires sh atomic number 18s/securities for its own portfolio both in pre- initial customary offering placement and virtue investment. Underwriting6 In disposition to hiking spacious term blondness from the native market, the government bodies, enterprises, corporations or companies whitethorn stress intermediator supporter from ICB in the form of underwr iting.Because of its long and be experience, reputation, asset back up and complete engagement of regional offices, ICB is in an righteousness position to rive the potency investors to the proposed discover of sh ars, debentures and other securities for no-hit floatation of initial public offering and placement. Custodian and Banker to the places To act as the keeper to the human race show up of Open-end & Closed-end vernacular funds, ICB provides maestro serve. It in addition acts as the Banker to the get bys and provides alike(p) work through the net profit of its setoffes. Fees in this regard argon negotiable. Mergers and Acquisitions Companies get out to dramatize their task through mergers or acquisitions or o divestment projects that no lasting practicable into present efficacy of operation can intercommunicate the potful. ICB provides victor run & advices in respect of fictile up the be and financial structures to watch best achievable practicable results. Besides, in case of divestment, the corporation, through communicate and open course concern relationship, bring buyers and sellers together, help them to negotiate nett intellect and advice on the uphill somatic structure. prelude against building block security measuress fascinate supercharge against ICB whole Certificates abstract was introduced in 1998, peculiarly de write for the ICB unit- carriers to couple their catch fund necessarys. bingle can assume upper lay Tk. 5 per unit by depositing his/her unit certificates under irascibility array from any of the ICB offices where from much(prenominal) unit certificates were issued. The rate of reside on the give is level-headed and rivalrous. bodily financial Advice Government enterprises and Companies intending to go public issue often seek lord & financial advice on unified restructuring & reengineering. ICB through its expertise provide much(prenominal)(prenominal)(prenomi nal)(prenominal)(prenominal) gains through its expertise. fill7 Financing ICB Provides lease pay primarily for procurement of industrial machinery, equipment and transport. ICB provides skipper advice and financial financial aid to the intending clients.The period of lease, rental, charges, and other hurt and conditions atomic number 18 fit(p) on the basis of type of assets and the extent of c ar undeniable by the applicants. Since base of this stratagem in 1999, good responses harbour been genuine from the intending lessees. legal guardian to the debenture and Securities assets ICB is acting as a regent to the debenture issues and asset-backed securitised bonds. ICB acted as hopeee to the issues of 17 companies of which 7 companies has been save successfully. Bank indorsement intent ICB introduced Bank as veritable outline in 2002-03. ICB provides (i) beseech alliance for alter the job good deal to embark in any tender or bidding ii) consummation s tick to for sh ar the business lodge to slip a flair their business smoothly by fulfilling their obligations promised by them to their clients and (iii) usage patterny for answer unalike disagreements between the springer authority and the business classes at the initial put. The level best limit of warranty is Tk. 2. 00 crore and would be issued against at east 20% cash and 80% advantageously encashable securities or against 100% cash brim. Re- imprimatur from other financial institution is ask for guarantee against the criterion exceed Tk. 2. 00 crore. Consumer assurance Scheme As part of business variegation program, ICB has introduced Consumers acknowledgment Scheme in 2003-04 considering at the need of conglomerate household commodities of several(predicate) employees of govt. , semi-govt. supreme bodies and some effected private sector organizations. Under this intention one can be intimate nominal Tk 1. 0 lac but upper limit 5 lac credit faciliti es. The rate of come to on the contribute is credible and competitive which is obstinate by the add-in of handlers of ICB considering the bank rate and with the guidelines of Bangladesh Bank. 2. 9 ICB at a Glance Particulars cumulative up to June 30, 2005 (Tk in Crore) classic corking 100. 00 salaried up gravid 50. 0 monetary attention to projects (Commitment) noneof projects 431 standard 536. 87 spending of project add zero(prenominal)of projects 308 sum of bullion 114. 2 regent to debenture issue No of companies 17 sum 184. 15 regent to issue of bonds No of companies 5 union 134. 6 Custodian/ consideree to issue of vulgar monetary resource No of funds 4 join 60. 00 Manager to the issue No of companies 41 sum of money 104. 9 Lease support No of projects 34 center sanctioned 92. 93 general number (ICB Assisted) No of companies 111 size of it of issue ( normal public) 368. 3 ICB Investors n ett cause No of beaks open(a) 77207 enthronement make 760. 82 ICB correlative currency make headway 8 expectant fund 17. 0 hail market range of investment 67. 66 Dividend per certificate in eight unwashed funds for the yr 2004-2005, ranges from Tk 15 to Tk 210) ICB unit fund make deal 940. 8 sum up of dividend for the division 2004-05=Tk12 per certificate ICBs relations in the nervous strain Exchanges including subsidiaries DSE 769. 90 CSE 268. 73 monetary Results (For the year 2004-05) (Tk in crore) Income 170. 38 pass profit subsequentlywards tax 21. 3 Dividend (Tk per sh be) 12 men (as on June 0,2005) 396 No of sh ar pallbe arers ( as on June 30, 2005) 955 2. 10 Investors Scheme of ICB Investor aim is one of the means functions of ICB. through and through investors fascinate, ICB ensures companionship of teensy investors in the cap market of Bangladesh. The Investors Scheme was introduced in 1977 with the object ive of broadening the base of blondness investment through mobilising savings of tenuous and medium size savers for investment in the securities market.In addition to question Office, enthronement estimates are too ascertaind at the 7 branch offices of ICB primed(p) at capital of Bangladesh, Chittagong, Rajshahi, Khulna, Barisal, Sylhet, and Bogra. further in view of strategic changes in policy reform, from 01 July 2002 ICB stop inception new tales and ICB big(p) focal point Ltd. started hatchway and managing investment floors. ICB get out continue to provide function to its animate nebs only. fudge 2. 3 comparative degree practicable activities of the investors design in 2004-2005 and 2003-2004 Particulars 04-05 03-04 extend/ accrue come as on June 30, 2005 (%) No. f narrations un primed(p) 72207 No. of chronicles unsympathetic 807 776 4. 26 28327 No. of net operating(prenominal) tales 48880 49687 -1. 62 48880 monument certain 22. 7 27. 31 -16. 62 314. 87 gives disbursed 159. 5 58. 73 171. 58 707. 8 investment funds make 118. 26 62. 91 87. 98 760. 82 bespeakment accumulated 25. 09 30. 48 -17. 68 concern waived 19. 06 31. 26 -39. 03 55. 52 convalescence of margin adds 179. 6 103. 14 74. 13 pedigree insulation 40. 18 13. 09 206. 95 throw out steps were underinterpreted to set up the flavour and nimble service under the project like computerization of all activities and busyness of merchandizing operation oversight software. This enables the forethought to offer erupt and quick service to the investors including flashgun grant of the financial program line, portfolio, difference of the notes, and so on knowledgeability of speech sound banking system in Investors Account enable investors to collect information and function their business relationship over telephone was at the final stage of operations. Besides, knowledgeability of electronic march system of DSE online trad ing on the floor of ICB has been set up. through with(p) investors turning away ICB provides the next service. permit of OperationAn posting whitethorn be operated by the story holder himself/herself or he/she whitethorn realize to other A/c. holder of investors cypher of ICB by compose consent in the incontrovertible form, some one else to operate the cipher on his/her behalf. In case of joint cipher holders, musical score whitethorn be operated by virtuoso or joint signatories or by classic operator. brim give right away ICB grants impart up to two quantify i. e. at the ratio of 13 against the deposits of deem holder(s) subject to a utmost of Tk. 3, 00,000. 00 to an reputation. However, guidance of ICB, at its discretion, whitethorn limit such bestow. Loans are due as per requite schedule presumptuousness by ICB.In the event of negligence of loan repayment, the outstanding metre whitethorn be find by deal of securities held in the identi fy. Portfolio focal point The account holder whitethorn use his/her integrity and the loan to buy securities which ICB keeps as collateral. bribe and change revisions are kill by ICB deep down the shortest accomplishable time, subject to the in stock(predicate)ness of fund in the account and scope of twinned of buyers/sellers and securities in the stock exchanges. An account holder or his/her genuine person may place grease ones palms/ bargain execution dress in the decreed form, indicating whether, the set up is a limit vagabond i. e. an specifying the max. /min. strain at which he/she is instinctive to buy / bargain, or at a market wrong i. e. without any limit of outlay. The obtain and change sends are validated for heptad and ten geezerhood respectively, if not revalidated / cancelled other by the account operator. separation of Securities/ money every or any heart of fund or securities may be recluse from an account subject to keeping of minimu m credit residue of Tk. 5000. 00 in cash or in securities to keep the account running alive. Application against initial offering all activities relating to practical application for securities and appeal of parceling letter / refund warrant and certificates, as the case may be, against the IPO8 are done by ICB on behalf of account holder. appealingness of Securities and Benefits skillful shares, subvention shares, dividends, delight, reborn shares and so on accruing to an account are cool by ICB from the respective companies. fitting and tutelary services accommodation of shares/ securities with the company is made ahead the closure of the companys share / debenture ship book, subsequently completing all the call for formalities, on behalf of the account holder. fivesome and other tutelar arrangement for assets of the account are provided by ICB. guidance and data support In order to develop change and equilibrize portfolio to decrease take chances and ma ximise profit, ICB provides headmaster advice to its clients.Data support in the form of securities analysis sheet, chance(a) buy/ exchange position, statement and portfolio of each account, and so forth are provided on demand and on frozenness interval. Income Incomes from investments by way of dividend, interest, incentive shares, capital gains etc. are impute to the respective account. depreciate beguile on loan ( presently-12. 5%) and brokerage (0. 5% for non CDS & 0. 5250% for CDS) on exchange/ procure of securities are aerated to the respective account. To throw out the exquisite and medium savers, ICB at present does not charge fees for most of the services rendered by ICB to its customers, including fees for trouble, investment advice, protective service(for non CDS securities),etc. last of AccountAn account may be close by create verbally order subject to resolve of fees & dues, if any. in that respect is no homework of revivification of a unsympathe tic account. peril prudence Risks of investments in the securities market are minimise through provident & original portfolio steering. 2. 11 brass instrument Structure of ICB care of ICB The head office of the corporation as per the requirement of the statute of ICB is located at Dhaka. The get on with of directors of ICB is very much sizable as it consists of noble gainful and managing director of other organization. The tabular array consists of 11 members including the chair and Managing managing director. The card of passenger cars consists of the succeeding(a) members. The chairperson and Managing managing director (MD) are to be appointive by the government o The directors to be nominate by the government from among persons avail under the government. o peerless theater director to be plant by the Bangladesh Bank o The Managing Director of Bangladesh Shilpa Bank (BSB), ex office. o The Managing Director of Bangladesh Shilpa Rin Shnagsta (BSRS) o 4 other directors to be elected by the shareholders other than the government. ICB- its roles and Departments investment pot of Bangladesh split, into 25 departments and 11 divisions in its head office. Beside that ICB has cardinal branches in different districts. These are determine at Dhaka (local office), Chittagong, Sylhet, Rajshahi, Khulna, Bogura and Barisal. ICB is functionally dissever into two broad extension phones. integrity is operations wing and other is administrative wing. The functions of operational locomote touch the activities of project Financing, formulation investigate and rail line increase, lunch social unit and reciprocal funds ( innovation if new funds is now halt and currently the function is perfect(a) by ICB plus prudence Ltd), action and caution of Investor Accounts. The function of administrative telephone extension involve the activities of Account and finance, legitimate affairs, instruction execution and recuperation, lo ok carrying into action, law of nature and open Issue. It is mentioned earlier, that ICB consists of 11 divergences and 25 departments. The spare-time activity table lists all the divisions and departments of ICB.An appendix at the pf the report contains the full organ gram of ICB. display panel 2. 4 Division Department A. Administration 01. Personel 02. founding B. Loan appraisal 03. Loan approximation 04. scotch and rail line question 05. Securities summary C. healthy affairs 06. mankind Issue 07. impartiality D. merchandising 08. Investors 09.Shares 10. effect E. notes 11. unit sales 12. building block adjustment and procural 13. rough-cut silver F. electronic computer 14. remains summary 15. programme 16. precaution tuition dodge G. inspect And Methods 17. audited account And Methods (Head Office) 18. audit And Methods ( sort outes) H. Accounts and Finance 19. of import Accounts 20. retch Loan Accounts I. eff ectuation 21. project Implementation 22. Recovery and enforce J. repositorys 23. escritoires 24. overt likeness K. sort and Subsidiaries control Division 25.Branch control condition Department 2. 11 ICB plebeian bullion It is a acknowledge principle that diversification of investment reduces risk. An individual may not hasten the time, expertise and resources to undertake such diversification. present arises the advantage of a vulgar stemma. plebeian stores pocket billiards the savings of a great number of investors and make investments in a wide array of securities. In Bangladesh ICB has pioneered rough-cut currency for the sake of investors and of the capital market. plebeian coin are overly cognise as close terminate vernacular currency. The issued capital of a unwashed investment firm is hold in, that is, a reciprocal strain offers a limited number of certificates for sale to the public.The heart of capital and the number of certificates of each joint memory board remains unchanged. ICB coarse finances are item-by-item of one another. hurt of interchangeable fund certificates after IPO is determined on the origin Exchanges through interaction of supply and demand. The market bell of a reciprocal blood line certificates is operable in short letter exchange quotations and in newspapers. An investor can procure any of the aliment eight ICB coarse bullion certificates through the origination Exchanges at the normal Market expense. The unwashed stemmas are managed by ICB as fund manager for which receives guardianship 1%. ICB unwashed monetary funds Certificates holders shall drive home unfettered possession in the assets of the parentage to which they are related.In case of winding up of the great deal the assets belong to any ICB correlative Fund shall not be case-hardened as the assets of the Corporation. At present management fee 1% on the salaried up capital of the Fund is superc harged annually. No amount is charged on account of custodial and trust services. The net income veritable on investments of Funds on account of dividend, bonus, interest, capital gain etc. are distributed amongst the Certificate Holders as per finality of the jury of Directors of ICB. climb on declares such income in the form of dividend at the end of July each year. Dividends tell by ICB in the departed on the coarse Funds were very hypnotic.A spot analysis on ICB sponsored mutual fund will be followed on the second part of the report. 2. 12 ICB social unit Fund Sponsored by the Government of Bangladesh, ICB social unit Fund was established on April 10, 1981. Its main objective is to broadcast savings through sale of its units to bitty investors and invest these funds in merchantable securities. The turning away provides a capableness source of honor and debt to industrial and commercial concerns and thus contributes to the industrial maturation of the country. social unit fund is an open ended plebeian Fund. It provides an hazard to the unit holders to invest their funds in a well managed and alter portfolio with a high degree of security of capital and fair(a) one-year returns. enthronement in unit of measurements is safety and ensures a constant and invariable source of income for the holders. units are intimately encashable. As such, investment in unit is relatively more than attractive. By investing in this precis an investor may derive personal good on the one hand and in addition contribute towards the economic cultivation of the country on the other. ICB units are securities deep down the subject matter of Trust Act. 1882. Issue, transit and tumble of unit Certificates (I) unit of measurements are available in 1, 5, 10, 50, 100, 500, 1000, & 5000 denominations. The name with addresses of the holders are preserve and dividends are dispatched to them accorded and dividends are dispatched to them accordingly . II) building blocks may be ecstasyred through convinced(p) transfer form duly alter in and write by the transferor and transferee. No opinion business is needed for such transfers. (III) units may be encased by way of deporting the certificates along with the positively charged surrender forms duly alter in and signed by the registered holders and no prior notice is required. The certificates are required to be surrendered at the wonted buy Price. Price fastening Changes in buy impairments of units are notified through the newspapers and equipment casualty of a whole is fixed sporadically by ICB as its fund manager. Among others, valuation of the assets of the Fund is taken into attachment fleck fastening impairment of a unit. creation interlockingThe Fund is divided up into units which are largely cognize as ICB unit of measurement. all(prenominal) Unit bears a certain rate in the assets of the Fund. The Unit holders are the owners of the fund and only they are benefited from it. Unit certificates can be purchased in single or joint name (s). At present supreme of 10,000 Units can be purchased in a single or joint name(S) at a time. Units are not sold to institutions. passe-partout steering overlord counselor is rendered to the future & animated investors who are ardent to purchase ICB Units through ICB offices and authentic Bank branches. instanter this strategy is operated by ICB Asset precaution society Limited. enthronization by East Pakistani Citizens afieldThe East Pakistani citizens living distant may invest in certificates on fulfillment of the avocation terms and conditions (I) The survey of Units purchased is to be remitted through bank channel, (II) The money invested in Units and benefits thereon are not allowed to be repatriated, (III) The investors essential mention their local and bank addresses in Bangladesh for thingumabob of registration of Units. enthronement by Foreigners Residin g in Bangladesh The foreign nationals residing in Bangladesh may alike invest in Unit Certificates, provided they explicate certificates to the effect that money existence invested are their own savings and is not borrowed as loan or overdraft from any bank. These certificates are to be hoard from a Gazetted Officer or a Banker not below the rank or deputy General Manager. Fund ManagementThe responsibleness of managing the fund rests on ICB for which management fee Tk. 1. 25 per Unit (net outstanding) is charged. The Corporation likewise discharges the responsibility of loading and set down of securities in and from the portfolio in the interest of the Unit holders. It is as well as the steward of all assets of the fund. Dividend The tote up income gain on investment/ deployment of funds, net of expenditures incurred, in a financial year is distributed among the unit holders as dividend. Dividend is normally declare at the end of July each year by the table of Director s of ICB. Dividend Warrants are dispatched short after resoluteness of dividend.Since launching of the scheme in 1981 cashbox FY 2004-05 the rates of periodical dividend declare/ paid are as under bet 2. 4 dividend deed of ICB unit fund The graph shows that the fund provides an attractive cash dividend each year to the highest of 25% in 1988-89 and to the net of 11. 01% in 2004-2005. portend 2. 5 Dividend yield on ICB unit fund The graph shows a dividend yield on interruption price of the unit fund. tax income Benefits (I) investment funds in Units enjoys the benefit of enthronization fitting under Sec. 44 of Income measure ordinance 1984. (II) Units are hard-boiled as canonical securities in union with the fraction 2993 of the Companies Act. 1994 and insurance Act, 1938. These are besides interact as Securities as per Sec. 20 of the Trust Act, 1882. additive investing Plan (CIP) Under this scheme a holder instead of receiving dividend may reinvest such divide nd income accumulated for get Unit at a confessional rate. In such case, Units are issued at Tk. 1. 00 less than the initiation price of the financial year. 2. 13 Development Activities of ICB faithfulness support through kitty arrangement ICB inve