Position Monitoring of Dhaka Stock Exchange (DSE)
24/02/2013 16:37
The Surveillance Department closely monitors outstanding exposure of members on a daily basis. For this purpose, it observes various off-line market monitoring reports. The reports are scrutinized to ascertain whether there is excessive purchase or sale position build up compared to the normal business of the member, whether there are concentrated purchases or sales, whether the purchases have been made by inactive or financially weak members and even the quality of scrip’s is considered to assess quality of exposure. The following key areas are examined to assess the market risk involved:
Online Monitoring of Broker Position
Surveillance closely monitors broker’s gross turnover exposure for ensuring margin calls in time.
- B/S Statement of Trading Members: Scrutinizing the statement on daily basis in order to keep watch on the exposure of the members & ascertain the quality of exposures.
- Concentrated B/S: It is considered a risky issue. In case, such a situation is noticed, fundamentals of the scrip, their daily turnover, their nature of transaction are ascertained.
- B/S of scrip having thin trading: It is closely scrutinized as comparatively high market risk is involved in trading in such scrip. Details of trades in such scrip, if necessary, are called from members to assess the market risk involved & decide on.
- Verification of Institutional Trade: The institutional trades executed by the trading members are verified to ascertain the genuineness of trades.
- Verification of Foreign Trade: The foreign trades executed by the trading members are verified to ascertain the genuineness of trades.
- Verification of Cross Reporting Trade: The report crossing trades executed by the trading members are verified to ascertain the genuineness of trades.
- Verification of D Form Trades: The D Form trades executed by the trading members (Dealers) are verified to ascertain the genuineness of trades.
- Verification of Sponsor’s Trade: The sponsor’s trades executed by the trading members are verified to ascertain the genuineness of trades.
- Snap Investigation: To carry out, wherever considered necessary, preliminary investigation of certain dealings to verify irregularities. Further actions, viz., referring the case for detailed investigation, referring the case to the SEC, depending on the findings preliminary investigation.
- Market Intelligence: The rumors floating in the market are verified with the data available with DSE, Newspapers, Television news channels & Reuters to ascertain the national & global factors affecting the market sentiments.
- Review block Trades: To determine a) whether the block was executed at a price, even if at a discount or premium which was in line with other trading of the stock. b) Whether there was any news on the company, which caused the price, increase or decrease subsequent to the block transaction.
- Review List of Settlement Failures: To identify a) brokers with frequent failures b) a particular stock with a pattern.
- Verification of Company Accounts: To scrutinize company announcements, company reports, auditors qualification & other notes of special interests in the published accounts of such company.
- Verification of Company Accounts: To scrutinize company announcements, company reports, auditors qualification & other notes of special interests in the published accounts of such company.
- Review of Media Information: To scrutinize press articles other media on the daily basis, the news relevant to the share prices of companies.
- Monitoring on newly Listed Stock: To review all activities of a newly listed stock for the first ½ weeks to identify any abnormal deal.
- Development of Good Liaison: To develop & maintain good liaison with staff members of SEC & listed companies & member firms as well.