StockAI Blog

What is DSE? — Dhaka Stock Exchange Guide 2026

History of the Dhaka Stock Exchange

The Dhaka Stock Exchange (DSE) was established on April 28, 1954, originally as the East Pakistan Stock Exchange Association. Following Bangladesh's independence in 1971, it was renamed to its current name. Over seven decades, DSE has evolved from a small regional exchange with manual trading to a modern electronic exchange.

Key milestones in DSE's history include the introduction of electronic trading in 1998, the launch of the DSEX index in 2012, and the implementation of circuit breakers and enhanced regulatory frameworks by BSEC in the 2020s.

How DSE Trading Works

DSE operates as an order-driven electronic exchange. All trading happens through the Automated Trading System (ATS), which matches buy and sell orders based on price-time priority.

Trading mechanism:

  • Investors place orders through registered brokerage houses
  • Orders are matched on a price-time priority basis
  • Settlement follows a T+2 cycle (trade day + 2 business days)
  • CDBL (Central Depository Bangladesh Ltd) handles electronic share settlement

DSE Indices Explained

DSE tracks market performance through three benchmark indices:

  • DSEX — The flagship index covering all listed companies, weighted by market capitalization. Launched in 2012 with a base value of 3,893.44 points.
  • DS30 — Tracks the 30 largest and most liquid companies. Serves as the blue-chip indicator and is rebalanced periodically.
  • DSES — The Shariah-compliant index, filtering companies based on Islamic investment criteria. Important for the majority-Muslim population of Bangladesh.

Listing Requirements on DSE

Companies seeking to list on DSE must meet requirements set by BSEC:

  • Minimum paid-up capital of ৳50 million
  • At least 3 years of operational history
  • Positive net worth in the most recent audited financial statement
  • Minimum 10% of shares offered to the public (free float)
  • Compliance with IFRS/BFRS accounting standards

Market Regulation

DSE operates under the oversight of the Bangladesh Securities and Exchange Commission (BSEC), established in 1993. BSEC regulates:

  • Listing and delisting of securities
  • Broker licensing and compliance
  • Insider trading prevention
  • Disclosure and reporting requirements
  • Market surveillance and circuit breaker mechanisms

Explore DSE with StockAI

Frequently Asked Questions

When was DSE established?
The Dhaka Stock Exchange was established on April 28, 1954, as the East Pakistan Stock Exchange. It was renamed to Dhaka Stock Exchange in 1971 after Bangladesh's independence. DSE has grown from a small regional exchange to one of South Asia's key equity markets.
How many companies are listed on DSE?
As of 2026, DSE has over 350 listed companies across 20+ sectors including banking, pharmaceuticals, telecommunications, energy, and manufacturing. The total market capitalization exceeds $70 billion USD.
What are the trading hours on DSE?
DSE trades Sunday through Thursday from 10:30 AM to 2:30 PM Bangladesh Standard Time (BST). The market is closed on Fridays, Saturdays, and government-declared public holidays.
What is the circuit breaker system on DSE?
DSE implements a daily price limit system (circuit breaker) to prevent excessive volatility. Individual stocks cannot rise or fall more than 10% from the previous day's closing price in a single trading session. Stocks hitting these limits are placed in the circuit breaker list.