DSE Trading Rules Explained | Part 4 – Corporate Compliance & Investor Protection

In Part 3 of this series, we looked at how investors can deposit and withdraw funds and track their portfolios easily through Midway’s digital systems. In this part, we turn our focus to corporate compliance rules, dividends and investor protection measures. These are the rules that listed companies must follow, and the safeguards that ensure you as an investor are protected in the Dhaka Stock Exchange (DSE).

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Corporate Compliance Rules for Listed Companies

All listed companies on the DSE are required to follow certain compliance rules:

• Annual General Meetings (AGMs): Every company must hold an AGM where they present accounts, performance, and declare dividends. By owning even 1 share of a company, you are eligible to attend its AGM. By law, companies must send you an invitation (physical or digital) to join. As a shareholder, you can not only attend but also share your views on how the company is managed and vote on various agendas—from approving financial statements to electing directors.
• Dividend Declarations: Companies must announce dividends formally, either after the AGM or as decided by the board.
• Quarterly & Annual Reports: Regular financial disclosures so investors know how the company is performing.
• Price Sensitive Information (PSI): Any major event such as mergers, new contracts, or factory shutdowns must be disclosed immediately.
• Record Date: The cut-off date to determine who qualifies for dividends. If you hold shares on this date, you will receive the declared dividend.

👉 All of this information—AGMs, dividend declarations, record dates, and financial reports—is easily available on QuickTrade Pro.

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How Investors Receive Dividends

When companies declare dividends, there are two main types:

• Cash Dividend → Credited directly to your linked bank account (the one you provided when opening your BO account). No action is needed from you.
• Stock Dividend (Bonus Shares) → Credited directly into your BO account. You’ll automatically see new shares appear in your portfolio.

Some companies may declare a combination of both cash and stock dividends.
👉 Using the Midway Portal, you can also view a detailed dividend report for your account, giving you a clear picture of all dividend income you’ve received over time.

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​Investor Protection Measures by DSE & BSEC

To keep the market fair and protect investors, the DSE and Bangladesh Securities and Exchange Commission (BSEC) apply strict measures:

• Surveillance systems track unusual price or volume spikes.
• Circuit breakers limit how much a share price can rise or fall in one day, protecting investors from extreme volatility.
• Z Category identifies weak or non-compliant companies.
• Publication of closed company lists warns investors in advance.
• Fines and penalties are imposed on companies that violate rules.

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​How Investors Benefit

• You get transparent access to company performance and announcements.
• Dividends are credited automatically—no paperwork or follow-ups.
• Protection from manipulation and insider trading.
• With Midway’s QuickTrade Pro REAL-TIME Trading App and Midway Portal, you get additional tools like dividend reports, alerts, and portfolio updates—keeping you fully informed.

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​Corporate compliance ensures that companies remain accountable, while DSE and BSEC rules provide an extra layer of protection for investors. This combination builds confidence and makes investing safer for everyone.

In Part 5 of this series, we’ll look beyond day-to-day trading and explore the different investment opportunities in the DSE—including IPOs, equities, mutual funds, government bonds, SME shares, corporate bonds, and Sukuks.
At Midway Securities Ltd., we believe in one principle: Investing, Simplified.

👉 Open your BO account today and experience secure and transparent investing with QuickTrade Pro.