MONITORING ACTIVITIES OF DSE The monitoring cell operates as per Listing Regulations of DSE for monitoring th e activities of the

companies: - To ensure holding of the AGM in time. - Sending of Annual Report , six months unaudited reports as per provisions of L isting Regulations. - Issuance of Dividend Warrant , Bonus Share Certificate within the time limit. - Utilization of fundraised through Right Offer. CUSTODIAN BANK IN BANGLADESH STANDARD CHARTERED BANK ALICO BHABAN18-20, MOTIJHEEL C/A DHAKA-1000 PHONE: PABX- 9561465 FAX NO: 880-2-9561457, 9561758 TELEX: 675859,671154 SCBDAC BJ THE HONG KONG AND SHANGHAI BANKING CORPORATION LTD ANCHOR TOWER(5TH FLOOR) 1/1, SONARGAON ROAD DHAKA-1205 PHONE: PABX:9660536-43 FAX NO :880-2-9660554 TELEX: 632109 HSBC BJ SOUTHEAST BANK LIMITED 1, DILKUSHA C/A (3RD FLOOR) DHAKA-1000 PHONE : PABX:9550081-85, 9567271-72 FAX NO: 880-2-9550093, 9563102 TELEX: 632425SBANK BJ E-mail:seastbk@citechco.net ARAB BANGLADESH BANK LIMITED BCIC BHABAN(8TH, 9TH & 1 1 TH FLOOR) 30-31, DILKUSHA C/A DHAKA-1000 PHONE PABX 9560312-16FAX NO: 880-2-9564123, 9564124 E-mail: abbank@citechco.net INTERNATIONAL FINANCE INVESTMENT COMMERCE BANK LIMITED (IFIC) BANGLADESH SHILPA BANK BHABAN (17TH TO 19TH FLOORS) DHAKA-1000.PHONE: PABX: 9563020, 9562062, 9562068 & 9562060 FAX NO: 880-2-956201 5 FUTURE PLANS - Online nation wide trading via VSAT channel - Online world wide trading over the Internet - Automation of Backoffice Functions & Services - Central Depository System - Multi-storied modern premises of DSE - Increase membership to 500. SECURITIES AND EXCHANGE COMMISSION (SEC) Securities and Exchange Commission was established on 8th June 1993 as the regul atory body under the Securities and Exchange Commission act, 1993. The present address of the Commission is : Securities and Exchange Commission 10 Dilkusha C/A, (15th & 16th floor) Dhaka -1000. Phone :880-2-95688101-2Fax : 880-2-9563721.

DSE AUTOMATION : Tandem Electronic Securities Architecture (TESA)

System Overview Key Business Modules Trading Engine TESA s principal trading functions Market Control Market Information Broker Support Surveillance Exchange Support Trading Hours Clearing and Settlement Links To Other Markets TESA Architecture Solution Benefits TESA Functional Model Broker Workstation / Member Sever Hardware re Network ( LAN / WAN ) System Software Application Softwa

The technology which DSE has acquired will bring the trading floor close to the investors. In other words, the trading floor has moved right into the member s off ice premises where an investor can place buy/sell orders. For the DSE this is a change never before experienced. No doubt the steps to transition have been a ve ry painful experience for many concerned. This event is the conclusive evidence of DSE s determination to transform the bourse into a modern world class Stock Exc hange. It is believed that the Automation will bring in the much desired efficie ncy and transparency in Trading and Settlement operations of the Exchange. DSE Automated Trading System has been introduced since 10th August, 1998. Hardware: DSE looked at a system that satisfies the strict requirements of fault tolerance , high availability, scalability and maintainability. We are confident that we h ave installed a system that has the requisite proven track record of satisfying all of these criteria. Our system is fault tolerant to the fact that no single c omponent failure will halt the system. High availability is ensured by the mecha nism of having four independent processors working in parallel on a queue of pro cesses. The system is scalable by the fact that addition of additional processor s will not have any significant performance degradation. Finally, the system rem ains highly maintainable by making its constituent parts hot pluggable, swappabl e, and upward compatible. In other words, components can be added or removed whi le the system is running and any new upgrades will work with old systems. All th ese features are tested and proven for the procured system. All disk drives are mirrored and have dual paths and dual controllers for faulttolerance. Thus if any of the disk pairs crashes the exact copy of the data is a vailable on-line. The system is powered by dual power supplies with built-in bat teries that ensures power for at least three ( 3 ) hours. However, to ensure bet ter power quality we have installed UPS s and backup generators. Network ( LAN / WAN ) : As most of the members are located in the DSE building, majority of the members are connected via ethernet Local Area Network ( LAN ). Additionally, the trading system will allow on-line trading over the WAN using dial-up / leased line modem

s. There is, however, plan to incorporate VSAT channels for nation-wide and inte rnet communication for world wide trading. To this effect, the DSE has already d eveloped and installed its own WEB site. In case of trade interruption due to se rious hardware/ software failure, telecommunication disruption or a network fail ure there is a provision to allow traders to trade using the workstations in the Contingency Trading floor. Besides the Help Desk of the IT Department has been set up to provide support to the network users. Any member can set up his own office LAN connected to the DSE LAN or WAN. Thus i n any given member house multiple traders can trade simultaneously. SOFTWARE System Software: The system software is Tandem s proprietary NONSTOP KERNEL and includes the databa se as part of the operating system thereby eliminating the layer typically found in most Database Management Systems (DBMS). The database functionality is handl ed by NONSTOP SQL, which is simply a different operational session for the opera ting system. The proprietary nature of the system software arguably enhances sys tem security. The system software treats all its hardware resources as objects and is thus ent irely message driven. This then allows application software to be deployed using client / server architecture providing shared data processing between the centr al server and the user workstation. Application Software Tandem Electronic Securities Architecture (TESA) TESA is a Tandem and Indigo Technologies joint strategic product for stock excha nge automation. It takes the emerging securities market paradigm and transforms it into a world class electronic market. TESA applies the latest technologies to a broad spectrum of modern stock exchang e business requirements. Premium resources from the international securities consulting field, and Tandem software development arena collaborated to produce TESA. The overall result of these efforts is a powerful system that adeptly meets exchange and broker needs alike. System Overview TESA is comprised of two basic components. Tandem NSK-based server Windows95/ windows NT-based workstation clients and member servers. The Tandem NSK server provides the on-line trading engine and other core functio nal components of the system. Users of TESA located at an exchange or member (br oker) office, access the system via Windows 95 based. In larger member offices, a Windows NT tiple workstation to TESA. member server facilitates connection of mul

Key Business Modules Seven key business modules currently go to make up TESA. Others are being review ed and the overall product is undergoing continual enhancement. The key modules are briefly described: Trading Engine TESA s screen-based trading system supports fully automated trading, manual tradin g and hybrid markets. The system can function as an orderdriven (electronic order matching), a quote-d riven (market-maker based) or a hybrid (elements of both) market. All features c ommonly associated with electronic trading are incorporated into the system. TESA s principal trading functions are : Market Information : Supply investors, traders, advisers et al with the market i nformation needed to formulate their buy and sell decisions. Order Management : Accept, validate and store orders and quotes (and manual trad e reports) from broker workstations and / or systems. Order Execution : Automatically executes orders when buy and sell prices match. Trade Reporting: Report trade executions to each trade participant, to the settl ement system and / or the depository and to the market. Index calculation : Calculate and publish market indices. Market Access : Provide exchange members with efficient affordable GUI-based too ls for accessing the market. Picture of Public Order Book - TESA Picture of Broker Order Book - TESA The heart of the system s Trading Engine is the Public Order Book. This is an elec tronic list of all (un-executed orders held by TESA. Orders are placed TESA Orde rs and placed in the book in price / time sequence TESA conducts trading in 4 pl aces. TESA conducts trading in-3-phases. Opening: The Opening is a pure, single-price auction. All buy and all sell order s are compared and calculate the open-adjust price. Continuous Trading: During this phase, participants enter orders and immediate e xecution or for inclusion in the book. Automatic matching and execution takes pl ace based on best price/ first-in, first out trading rules. Post Closing: Closing prices are calculated and disseminated to market participa nts. Day orders and other orders whose term has expired are cancelled and return ed to their originators Market Control The Market Control Workstation allows the exchange administrative staff to contr ol the operation of the market, e.g. Session Control: Opening and closing the market via interactive control or by pr eset timers. Validation Parameters : Setting and viewing parameters that control the trading engine validation e.g. tick size, parcel size. Alert and Trading Halls: Setting alert limits against index values, stock price and participant positions for automatic generation of alerts and trading halts. List of orders as displayed in the Broker Order Book.

Messaging : Allows the dissemination of company announcement data and general ma rket administrative massages. Market Information Market Information is a real-time market data system. It collects, manages, gene rates and stores information relating to traded instruments and issuing companie s. Market Information is responsible for : Collecting Real-Time Market Information : Bids, offers, last sale (i.e. most rec ent trade price and volume), book and other data are gathered via the Trading en gine. It supports TESA s automated and manual trading modules and can process the trades of external and off-market systems. Collecting company Information : all information supplied by the listed companie s is maintained in the TESA database. Generating Market Statistics : TESA generates market indices on a real time basi s. It generates other statistical information such as Price Earnings Ratio (PER), Price to Book Value (PVB), etc. on request. Disseminating Market Information: TESA uses two different machanisms for deliver ing market data to users. TESA s database can be accessed by any authorized user a t their workstation. In addition, a Market data broadcast (rather like a high-sp eed computerised tickertape) is provided. The broadcast can be transmitted over telephone lines, radio signal, the vertical blanking interval (VBI) of a televis ion signal or satellite. This broadcast can be used to create local databases an d to drive tickers data walls, video walls, market monitors and other forms of d isplay and usage. Broker Support The Broker Support subsystem provides the tools for broker office personnel to a ccess TESA s trading, settlement, depository and registry services. These are base d on standard windows interfaces. It gives users access to a database cache of current market information plus on screen access to the central and local order books. It is the tool participants use to submit orders and receive execution reports. Broker Support subsystem local user database. Research and Enquiry : this module provides brokers access to the local Broker S upport and TESA databases for enquiries and research purposes. Picture of Public Order Book and Broker Order Book The multi-windows environment allows users to simultaneously view orders, market and trades. Broker Support offers Stock Exchange members two configurations; multi-user and standalone. Both configurations maintain a database consisting of information ge nerated by the TESA Server and the local system. Surveillance Electronic Surveillance operates on a Windows based workstation, which interface s with the TESA server. It receives data feed broadcasts from Trading Engine and updates a local database. This information is used to generate alerts of anomal ous or unusual trading and to reconstruct market conditions for investigative pu

rpose. Surveillance personnel are able to set "Alert" parameters on their workstation. Typical uses would be to flag unusual price or volume changes for a security. Exchange Support The Administration module provides stock exchange back office support functions. It enables an exchange to add, delete and amend company and company related inf ormation as well as information about market Participants (brokers and instituti on.) The TESA database provides extensive information about the company including : N ame, code, company number ID, Address, phone numbers and contact persons, Manage r and secretary persons, company auditor and solicitor, Directors and SE Members (for Brokers), Office locations and contact persons. The database has been designed to accommodate equities, ative instruments Instruments (listings) can be created y by the application of Corporate Actions. TESA handles justment types (i.e. dividends, bonuses, rights issues, fixed interest and deriv and deleted automaticall an extensive range of ad etc.)

A flexible billing facility allows collection of billing information for access to TESA facilities. The type of charging and the billing rate for each facility can be configured by the exchange. An on-line view of the Broker Order Book. TESA application audit files are maintained for critical transactions, including all trading activities. These can be reprinted to provide a record of what tran saction activity has taken place. Trading Hours The DSE operates every working day of the year . All listed securities are trade d & Quoted Serially from 10:30am until 2:30 pm.

Click here for the details of Clearing and Settlement System Clearing and Settlement The Clearing and Settlement module provides the management of trade from the poi nt of entry into the Settlement Pool trade database until it has been delivered and settled and removed from the Settlement Pool. It consists of three major business process. Clearing : participant trade reporting and affirmation, billing, assigning settl ement instructions. Diary Ajustments : the addition of cash or new shares to the trade to be deliver ed between participants due to the processing of a Company Announcement benefits Settlement; the process of overseeing that delivery of all instruments to the bu yer and payment of all moneys to the seller has occurred before removing the tra de from the settlement pool. Links To Other Markets TESA provides a number of ways to link with other markets. These can be as tight

ly or loosely joined as desired. TESA can report trades to other markets and can accept trade reports from them. It can operate multiple markets, each independe nt of the other, on the same central server. TESA Architecture TESA software is built for the global securities markets. It uses fault tolerant computers, intelligent workstations and client / server design techniques. This provides co-operative processing, high message integrity, continuous operation and fully automatic recovery. This co-operative mechanism enables very high spee d processing which is essential for today s electronic markets. TESA s Application Programmatic Interface (API) is the gateway to the TESA system from the outside world. All external devices connect through the API. The API pr ovides the translation between external devices and internal processes. This mea ns that a new process does not need to be written to support each new device, on ly the API needs to be modified. Solution Benefits The TESA application suite derives significant advantages from being implemented on the Tandem platform Stock exchanges who are Tandem customers have benefited from these advantages. Fault Tolerance : One of the most important automation requirements for any stoc k exchange system is continuous system availability. With most systems Fault Tol erance is created at the application level. Fault Tolerance is a fundamental des ign feature of the Tandem architecture. Data Integrity: Data integrity is an integral feature of Tandem architecture. TE SA employs standard Tandem tools to achieve exceptional data integrity. Scalability : The ability of an exchange to accommodate extraordinary increases in transaction volumes without loss of its Capital investment in automation is v ery important. The Tandem Himalaya is massively scalable. Parallel processor. An overview of the TESA Functional Model Client / Server : TESA s Client / Server architecture enables an efficient allocat ion of computing resources and provides easily modified user-friendly interfaces . Open Systems : The Tandem is an Open Systems platform. It does not restrict an e xchange to Tandem hardware. It supports the integration of other computer hardwa re. This allows an exchange to choose the hardware and application best suited t o its needs. Broker Workstation / Member Sever TESA workstations operate under Windows 95 and can function either as servers on a broker s network or as workstation. These are used to perform trading and settl ement activity by the brokers