having securities. This leads to that member firm towards squaring up and as a result, a complex situation arises. Lack of Knowledge Like any other industry, people who invest or are involved in capital market activities, have not sufficient knowledge about the market and the product. Even, they don't know how to make a valuation of a share. As a result, they have to suffer losses. What has happened to the capital market in the recent past, have vividly demonstrated lack of knowledge all around thus resulting negative impact in every respect. Manipulations & Scams The environment around the capital market is full of rumors of scams and wrong dealings. Brokers are accused of manipulating prices; companies are accused of miss-pricing their stocks, of floating rumors and of misrepresentation of performance. It is impossible to determine the validity of these accusations. Other problems are as follows: Most of the members of DSE are not rendering optimum services to the investor’s. •
Some stock exchange members also serve as director of listed companies. This can lead to the chance of insider trading especially in such a poorly regulated market.
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Lack of proper and adequate disclosures o Certifiers of financial statements and Property value’s of the company are the identical. o Management and Owners (Councilors) of DSE are entwined o Lack of enforcement with the compliance of rules and regulations o Corporate governance - sponsor-owners are managing the firm. All most all cases, no professional management are hired to run the affairs of the listed company. o Management and Owners (Councilors) of DSE are entwined