PRESENT CAPITAL MARKET CRISIS & ITS RECOVERY STRATEGIES Research Instrument

N.B. Please answer all of the following questions to the best of your ability. If a question does not seem to apply to you move on to the next one. Information and data furnished by you will be treated as strictly confidential and will be used for the purpose of this assignment study only.

Section A: Profile of the Respondent

Instructions: The following section pertains information about your personal details. Please pick the right answer. If you require additional space to answer any questions, you may use additional sheets of paper & attach them to the questionnaire.

1. Name of the Respondent: 2. Location: 3. Sex: Male Female 4. Age: Below 29 30-39 40-49 50-60 Above 60 Below SSC S.S.C./O Levels H.S.C./A Levels Technical Diploma Graduate Post-Graduate Others (Please Specify) Single Married Widow

5. Educational Qualification:

6. Marital Status:

7. Occupation:

Unemployed Student Retired Employed Part Time Business Employed Full Time 5000-10000 10001-20000 20001-50000 50001-100000 Above 100000

8. Monthly Income:

9. Designation: 10. Signature: __________________________________________ 11. Date: ______________________________________________

Section B: Investors Opinion

Instruction: A series of statements are listed below. The scholar is interested in your opinion about them. There are no right or wrong answers. Please indicate your agreement or disagreement by putting tick () marks in the blank column corresponding to each Sl No. Factors Relating to Capital Market Crisis Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree

01.

02.

03.

04.

05.

06. 07. 08. 09.

10.

Frequent changes in regulatory policies by the Central Bank & SEC Lack of Confidence among individual investors Capturing money from the investors through Multilevel Marketing (MLM) Manipulating the loopholes of capital market related rules & regulations Lack of interest of Merchant Banks to invest Unwillingness of institutional investors Currency devaluation Liquidity Failure of implementation of initiatives by the regulatory authorities Lack of wellarticulated regulatory framework

11.

12. 13. 14.

Introduction of commercial banks into merchant banking Little market supervision Poor transparency Inadequate disclosure both in trading & quality of information

Sl no.

Factors Relating To Recovery Strategy

Strongly Agree

Agree

Neither Agree nor Disagree

Disagree

Strongly Disagree

1. 2.

Reformation regarding issuance of new shares Making innovation to ensure compliance with the law & regulations Strong policy formulation on mergers, acquisitions and restructuring Changing the one-way mode of operation through the steady introduction of financial derivatives & commodity features Stability in the financial sector through diligent implementation of macroeconomic regulatory policies Expanding direct financing Improving the layered structure of capital market

3.

4.

5.

6. 7.

8.

9. 10. 11.

12.

13.

Developing multiple asset management channels Developing bond market Comprehensive regulatory system Introducing computerized electronic monitoring system through surveillance software Enhancing investors protection through establishing regulatory enforcement Ensuring transparency, inclusiveness & regulatory independence

Instructions: A series of close-end questions is enlisted here. Please pick the right answer to the best of your degree of interest. If you require additional space to answer any questions, you may use additional sheets of paper & attach them to the questionnaire. 1. Investment objective: Dividend/Current Income Capital Growth Other (Please mention)__________________________ 2. Investment horizon: Very short term (T+3) Short term (0-6 months) Mid term (6-12 months) Long term (Above 1 year) 3. Investment group that you belong: Below 1,00,000 1,00,000-5,00,000 5,00,000-10,00,000 10,00,000-20,00,000 20,00,000-50,00,000 Above 50,00,000 4. You take trading decision on the basis of: Academic knowledge Trading experience Brokers advice Rumour Others (Please specify) _____________________________ 5. Cash Reserves or Funds that are not exposed to market risk: No cash reserves. Dependency on Borrowing One to Two months Three to Six months Seven to Twelve months Over Twelve months 6. Understanding & comfort level with investing in capital market: Less experienced & no comfort level Less experienced but some level of comfort Reasonable experience & comfort level Extensive background & understanding 7. Predictability (or stability) & sufficiency of Source of Income: Unpredictable; difficult to budget or invest Somewhat predictable but can fluctuate monthly Reasonably predictable with some excess to invest monthly Predictable & sufficient to allow for periodic investment

 Highly predictable with large excess to invest regularly 8. Time horizons needed to make withdrawal from stock market portfolio: None, currently need to make periodic withdrawals Less than 3 years From 3-5 years (typically 1-full market cycle) Between 6-15 years (equals, on balance, 2-5 full market cycles) Over 15 years 9. Concern About The Market Direction: Not Concerned At All Not Too Concerned Somewhat Concerned Very Concerned Income 10. Level of Diversification: Started to Invest at present Some stock market diversification, but intend to add some other classes such as govt. bonds, real estate etc. Reasonable stock market diversification but need increased investment in other asset categories Adequate stock market diversification & with other investment classes Extensive diversification across a wide range of asset categories & including stocks & stock mutual funds 11. Type of investment that is presently hold: Insurance Policies Governmental Savings Schemes ( DPS, Sanchay Patra etc.) Mutual Fund Schemes Public Provident Fund (PPF) Shares of Companies Company Deposits Bank Fixed Deposits 12. Current number of share owned companies: None 1-2 3-5 6-10 11-20 21-50 Above 50 13. Number of investments in Mutual Fund Schemes: None 1

 2-3 4-6 Over 6 14. Usual policy or strategy of investing in equity shares: Selling away the shares within a few days or weeks after buying Holding the shares for some months but not for more than 1 year Holding the shares for some years Investing only in IPOs 15. Single greatest worry about Bangladeshi Stock Market; Too much volatility (Price fluctuation) Too much price manipulation Corporate mismanagement & fraud Unfair practises of brokers Other (Please specify) 16. Overall opinion regarding regulation of capital market in Bangladesh: Very excellent Satisfactory Somewhat satisfactory Extremely poor Indifferent 17. Better investment policy: Buying IPOs (Initial Public Offers) Buying existing shares from the stock exchanges Investment in Govt. bonds, Sanchay Patra, DPS etc. Indifferent 18. The fall in the stock market affected your familys financial position in a Major way Minor way Not at all Indifferent 19. Recent changes in the stock market have made you feel less confident about your own personal financial condition: Yes No Indifferent 20. Recent changes in the stock market have made you less likely to invest more in the stock market: Yes No Indifferent 21. Recent changes in the stock market have made you seriously consider cancelling or postponing a big purchase, vacation or other expenditure:

 Yes No Indifferent 22. Recent changes in the stock market have made you less confident that you will be able to live comfortably after retirement: Yes No Indifferent 23. Recent changes in the stock market have made you less confident about your job situation: Yes No Indifferent 24. What is your prediction about stock market in the upcoming six months? Stock market will get better Stock market will stabilize Stock market will get worse Indifferent 25. The current capital market situation is: A significant economic milestone No big deal Indifferent 26. As you may know, people who think the market will rise are usually termed as bulls and people who think the market will drop are usually termed as bears. What would you like to be termed as? More as a bull More as a bear Indifferent 27. Todays drop in the stock market Makes you more likely to support a tax cut Makes no difference in your support for a tax cut Makes you less likely to support a tax cut Indifferent 28. Governments conscious move to buy shares from the market will help the market to rise up with sustainability: Yes No Indifferent 29. This will be a useful move to lift the market if regularly traded companies with low paid up capital come up with right issues or RPOs: Yes No

 Indifferent 30. The inclusion of State-Owned & State managed organizations (e.g. Bangladesh Railway) as well as the inclusion of Govt. projects (The proposed Padma Bridge) would increase the capital market depth & stability: Yes Noir Indifferent 31. Banks in Bangladesh are providing excessively easy & unsupervised credits to their clients: Yes No Indifferent 32. Stock market investments should come under consideration while measuring Bangladeshs inflation rate: Yes No Indifferent Instructions: A series of open-ended questions is enlisted here. Please pick the right answer to the best of your degree of interest. If you require additional space to answer any questions, you may use additional sheets of paper & attach them to the questionnaire.

1. Whats your opinion regarding present capital market? Ans.:_______________________________________________________________ 2. What was the reason behind the bubble in stock market in 2010? Ans.: ______________________________________________________________ 3. What was the reason behind the fall in stock market after 2010? Ans.: ______________________________________________________________ 4. Whats your expectation from the capital market? Ans.: ______________________________________________________________ 5. Whats your recommendation to curb capital market turmoil?

Ans.: _____________________________________________________________

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