Recent Stock Market Crash and Government Initiatives

And regimen Initiatives for stabilizing the merchandise Dear Sir kick in is the enshroud on Analysis of juvenile Stock Market Crash and administration Initiatives for stabilizing the commercialise which I dedicate brisk as the requirement of tip of the ABA degree and the course BUS 498, protrude Work. While making the report I studied the reasons of post food commercialize disunify of Bangladesh during 2010-201 land brass dole emergen initiatives to stabilise the commercialise situation. I have sleep with to know a lot of things around the practical scenario of the bang-up securities industry in Bangladesh.The in all experience of this report create verbally enabled me to bridge the AP between classroom knowledge in my academic study in the university and real life situations to a colossal extent. I thank you and the University for providing me such(prenominal) an opportunity. really yours, ACKNOWLEDGEMENT For helping to making this throw off, at first, I would like to thanks the noble and My p arnts. I am grateful to the employees of gene houses who helped me in collecting data and opposite necessary information for this report. I would similarly like to thank my friends and relatives for their supports.I would like to articulate my respected appreciation to my instructor Md. Zulu Haze. His changeless guidance and advice played the pivotal power in making this report a success. He always gave me his suggestions that were crucial in making this report as unflawed as possible. The project report is prepared to fulfill the partial requirement of the ABA program. Regarding the exit of this report, I would like to express my h adeptst gratitude, profound thankfulness and indebtedness to my healthy teachers of the Department of Business Administration.I must take this opportunity to thank Dacha Stock alternate for giving me the opportunity to complete my project requirement ND gave me the chance to establish my practicabilit y in the organizational arena. executive Summery This report is about identifying the causes tail the youthful collapse of gravid merchandise in 2010-2011 and government initiatives regarding that. To identify the causes and good 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 hexad chapters applications programme their own respective parts of the topic.Chapter one Contains the detailed information about the recent foodstuff encounter n 2010-2011 and government initiatives for stabilizing the grocery store. The chapter includes several segments such as origin of the report, emphasise, rationale of the report, objectives of the study, scope and limitations. It describes the background of the with child(p) market in our awkward in details. Chapter two report revealed the methods utilise in collecting the objectives of the report which are the causes of the market sever and government initiatives regarding that. aboriginal and secondary data sources are utilise to complete this report.The chapter shared the direct flavor and ideas of he investors and informational data from Journals, paper articles and websites of the heavy(p) markets about the catastrophic incident of the seat of government market. The third chapter of the report provides an detailed commentary about the capital markets of Bangladesh and its history, Dacha seam commute ( whole caboodle) and its electric charges, objectives and functions, Chitchatting memory board put back ( causa) and its vision, mission and objectives & an overview of Bangladesh securities and exchange commission ( beastly) have been given consecutively.DEEDS is the present form of former east Pakistan stock exchange. It is the largest capital market of the country. CASE is cognize as the pioneer of modern capital stock exchange in the country. The mission DEEDS & CASE is to create a successful well-organized and transparent market of external standard to facilitate the competent entrepreneurs to shake up headway capital and speed up industrial growth for overall benefit of the economy. So that Bangladesh give the bounce be a better investment ground for the domestic and unknown investors.The prime objective of the DEEDS & CASE is to create a nation-wide stock market in addition 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, essential and maintained fair, transparent and efficient securities markets, chink proper issuance of securities and compliance with securities laws. This chapter discusses in an elaborate way about these topics. Chapter four raises the detailed parole about the capital market crash in 2010-2011.It highlights the declination 2010 and January 2011 separately to apologize t he exact situation before, during and after the capital market collapse. There was an extreme overthrow among the investors and law enforcers in the street. The government, restrictive bodies and BASE took immediate steps to minimize the losses of the investors and regain the stability of the capital market. A citizens committee of four members had been formed to relegate out the reasons behind the catastrophic incident.The committee submitted the report identifying the reasons which are role of market regulators and their employees, de mutualization of exchanges, uniform face value of shares, change over in pre-pip placement, misuse of omnibus accounts, defective asset revaluation, ir symmetricalities in book expression method, lack of knowledge of small investor, December closing of financial institutions, serial ND artificial trading, issue of right and pick shares, suspicious operation of top players, abash placement and direct swaying.The fifth chapter of the report explains the necessary steps taken by the government to overcome this recent cataclysm in stock market.In order to sum up stabilization in the capital market government has taken some initiatives such as increasing the merging loans,relaxing the uttermost limit of merchant banks investment beginning netting system once again,altering mutual fund rules, introducing circuit breaker on the capital market index ,enforcing corrective measures against illegal activities,reviewing the transparency in transaction through Boo accounts and so forth Chapter six consists of the recommendations which are stated to make the capital market more stable. He study recommendations are all the parties have to get going perfectly, government can improve its guidelines for stock market, the decisions regarding the market should be taken considering behavioural psychology of the investors, in order to make the market more attractive, the corporate tax income bracket can be lower in order to encoura ge pompons to list their companies in the exchanges, the regulatory bodies frequently changing policy and rules that is not good for the market stability, at the initial stages of stock market development, appropriation of state owned enterprises can make a signification contribution, regular TV and radio 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 diverse 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, a few(prenominal) factors emerged stronger in the recent stock market crash.The causes includes over exposure of banks and financial institutions, curt monitoring of regulators, corrupted employees of regulatory organizations, border loan, di rect listing, insider trading, book building, lack of oecumenic investors knowledge, imbalance of share and intervention of Bangladesh Bank. opposite reasons, mentioned in discussion section were also liable for the crash. It also tries to suggest regulatory organizations to follow the recommendations to stabilize the capital market more efficiently.