INTRODUCING STOCK MARKET. Presentation by: Dawa Dakpa , Research/Listing Division. GIST OF THE PRESENTATION. Overview; Vision & Mission; Objective; Definition of Stock Market, Shares & Securities; Shares transaction; Benefits from shares, stocks & Securities; Conclusion; and
DawaDakpa, Research/Listing Division
Established in October 1993;
Incorporated under Companies Act 1989;
Regulated under the Financial Institutions Act 1992;
Owned by Four Brokerage Firms;
De-linked from RMA in July 1996 as an autonomous body ;
Developed under the technical assistance of the Asian Development Bank and the parenthood of the Royal Monetary Authority.
VISION: “ To become an integral part of the financial system and participant in the nation building”.
MISSION: “To develop and establish a fair, orderly and transparent securities market with the objective to facilitates efficient mobilization and allocation of capital, and ensure apt regulation to maintain market integrity and investor confidence”.
to encourage wider spread of shares ownership in enterprises;
to mobilize saving;
to provide forum to raise equity capital for new venture and;
to provide liquidity to the existing shareholders;
It provides a venue to convert Securities into money or vice versa.
What is a share?
A share of stock represents a part ownership of a company. for example, if you buy 10,000 shares in a company that has issued 100,000 shares, you own 10% of that company.
A securities includes (shares, stock, bonds, debenture stock or other marketable securities), as may be declared by the Government to be securities that is available for trade on a Stock Exchange. It can be of equity and debt securities.
How can I buy or sell shares?
Approach the Brokers for buy or sell
Where can you find one?
- Creates Client Account
- Accepts Orders with Money for Buy & Shares for sell
- Pooling of Orders
- Matching of Orders
Clearing & Settlement
Book Entry Register of shareholders at CD
WHAT IS A DIVIDEND?
A dividend is a part of a company’s profit after tax distributed to shareholders.
A shareholder must update his mailing address whenever he move from one place to place.
Lost of Trade Confirmation:
Write an application to the Central Depository. The CD will issue a Balance Confirmation.
A rights issue is an invitation from a company to its existing shareholders to purchase additional shares proportionate to their existing holding in the company.
WHAT IS A BONUS ISSUE?
A bonus issue is a process where money from a company’s reserves is converted into issued capital, which is then disturbed to shareholders as new shares, in proportion to their original holdings.
Both Risks and Rewards;
Remember value can fall as well as rise.
Risks are correlated with probability of returns.
Different securities carries different risk - return profiles.
“Therefore invest with knowledge”.
2. BCCL Bhutan Carbide and Chemicals Ltd. 1993
3. PCAL Penden Cement Authority Ltd. 1993
4. BFAL Bhutan Ferro Alloys Ltd. 1995
5. BTCL Bhutan Tourism Corporation Ltd. 1994
6. RICB Royal Insurance Corporation of Bhutan Ltd. 1993
7. BNB Bhutan National Bank Ltd. 1996
8. DPCL Druk Petroleum Corporation Ltd. 1995
9. BDL Bhutan Dairy And Agro Products Ltd. 1994
10. DSML Druk Mining Ltd. 1995
11. STCB State Trading Corporation of Bhutan Ltd. 1997
12. DSCL DrukSatair Corporation Ltd. 1998
13. BPCL Bhutan Polymers Co. Ltd. 1997
14. DPOP Druk Plaster and Chemicals Ltd. 2001
15. EBCC S.D Eastern Bhutan Coal Company Ltd. 2005
16. KCL Kuensel Corporation Ltd. 2007
17. BTL Bhutan Times Ltd. 2008
18. DWAL Druk Wang Alloys Ltd. 2008
19. JMCL Jigme Mining Corporation Ltd. 2008
20. DFAL Druk Ferro Alloys Ltd. 2009
21. BIL Bhutan Insurance Ltd. 2009LISTED COMPANIES
Royal Securities Exchange of Bhutan Ltd.
Post Box # 742
Fax # : 323849
Phone #s : 324296/323994/323995
E-mail : [email protected]
Website : www.rsebl.org.bt