The Impact of Central Depository Systems (CDS) in the Stock Market of Bangladesh

It is probably most difficult area for financial decision makers to understand the return behavior of stocks. The investors should determine the cut off point in between risk and return. Central Depository System (CDS) is a new phenomenon in Bangladesh. Recently it has been implemented by our stock exchange. The present study tries to find out the impact of Central Depository System (CDS) listing, which is undoubtedly a new concept for the stock market of Bangladesh. A depository is like a bank for shares instead of money. It holds securities of investors in electronic form. The very operation of CDS begins from the opening of a BO (Beneficiary Ownership) account by an investor and selling or buying shares through electronic form. Such BO account can be opened with any participant of CDBL (Central Depository Bangladesh Limited). The study also tries to analyze the operation of CDBL and its affects toward investors, issuers and brokers