Name – Polasi Akter

ID no – B193241
Semester – 8th
Section – Finance (Major)
Department – Department of Business Administration
Program – BBA
Course Title – FIN (4806)
Course Code – Financial Markets and Institution
Course Teacher – Md. Rizwan Hassan
Associate Professor in Finance and Banking
Date of Submission – 02/12/2023
Student’s signature – Polasi Akter
 Acknowledgement

Kumira, Chattogram
31 October, 2023

n making this project, and

completing it successfully, I
had to get help and guidance
from
some respected people. I am
grateful that I was given the
opportunity to make this
project,
which has enhanced my
knowledge in so many aspects.
I would like to show my
gratitude to my course
instructor, Mr Bhuvan Sharma
and our
principal Mrs Dubey for
giving me great guidance for
this assignment. I wish to
extend my
special thanks to my friends
and family who have always
been supportive and guided me
throughout this assignment
n making this project, and
completing it successfully, I
had to get help and guidance
from
some respected people. I am
grateful that I was given the
opportunity to make this
project,
which has enhanced my
knowledge in so many aspects.
I would like to show my
gratitude to my course
instructor, Mr Bhuvan Sharma
and our
principal Mrs Dubey for
giving me great guidance for
this assignment. I wish to
extend my
special thanks to my friends
and family who have always
been supportive and guided me
throughout this assignment
n making this project, and
completing it successfully, I
had to get help and guidance
from
some respected people. I am
grateful that I was given the
opportunity to make this
project,
which has enhanced my
knowledge in so many aspects.
I would like to show my
gratitude to my course
instructor, Mr Bhuvan Sharma
and our
principal Mrs Dubey for
giving me great guidance for
this assignment. I wish to
extend my
special thanks to my friends
and family who have always
been supportive and guided me
throughout this assignment
In making this assignment and completing it successfully, I had to get help and guidance
from some respected people. At first, I would like to thank Almighty Allah for making me
able to complete the assignment. Then, I would like to show my gratitude to my course
instructor, Md. Rizwan Hassan for giving me great guidance for this assignment.

I wish to extend my special thanks to my friends and family who have always been
supportive and guided me throughout this assignment.

Polasi Akter
Student ID – B193241
 Table of Contents

 Executive Summary 01

 Introduction 02

 Background of Investment Corporation of Bangladesh 02

 Objectives of ICB 03

 Mission and Vision of ICB 03

 Strategies of ICB 03

 Functions and roles of ICB 04

 Organizational Structure of ICB 05

 Board of Directors 06

 Shareholding position 07

 Evolution of mutual fund 08

 Awards & Recognitions of ICB

09

 Conclusion 10
 Page no-1
Executive Summary

Investment Corporation of Bangladesh (ICB) is a statutory corporation of Government of

the People's Republic of Bangladesh, established on 1 October 1976 under No. 40
of Investment Corporation of Bangladesh Ordinance, 1976. It is mainly an investment
bank operating in Bangladesh, established to accelerate the pace of industrialization and to
develop a sound securities market in Bangladesh.

ICB is one of the largest investors in share market of Bangladesh. Investing in share market,
providing loans and advances, acting as manager/trustee/custodian of mutual funds are some
of main activities of ICB. It's the most successful state-owned corporation of Bangladesh in
terms of profitability. Classification of shareholders, as on 30 June 2013, shows that
Government of the People's Republic of Bangladesh holds 27% of the shares of ICB and it is
enlisted in Dhaka and Chittagong stock exchanges. At present the Corporation is being
operated under the Investment Corporation of Bangladesh Act, 2014.
 Page no-2
Investment Corporation of Bangladesh

Introduction:
ICB is a statutory corporation. It is mainly an investment bank. As an investment bank is a
financial institution, which mobilized fund from the surplus economic units by savings
securities and developed funds to the deficit economic unit also by buying/underwriting
securities.

Background of ICB:
After Liberation in view of social economic changes, the scope for private sector investment
in the economy was kept limited by allowing investment in projects up to taka 25 lacks. The
new investment policy, which was announced in July, 1972 provides for an expanded role of
private sector by allowing investment in a project up to taka 3 cores. The ceiling has further
being raised to taka 10 cores in spite of the adequate facilities and incentives provided to the
private sectors encouraging response was not for the coming. One of the reasons among other
was the lack of institutional facilities, which provides underwriting support (Lick former
ICB) to industrial enterprise that was required to raise much need equity fund. Thus, the need
for reactivation for capital market, stock market was keenly felt
The Investment Corporation of Bangladesh (ICB) was established on 1 October 1976, under
“The Investment Corporation of Bangladesh Ordinance, 1976” (no. XL of 1976).The
establishment of ICB was a major step in a series of measures undertaken by the Government
to accelerate the pace of industrialization and to develop a well-organized and vibrant capital
market particularly securities market in Bangladesh. ICB caters to the need of institutional
support to meet the equity gap of the companies. In view of the national policy of
accelerating the rate of savings and investment to foster self-reliant economy, ICB assumes
an indispensable and pivotal role. Through the enactment of the Investment Corporation of
Bangladesh (Amendment) Act, 2000(no. 24 of 2000), reforms in operational strategies and
business policies have been implemented by establishing and operating subsidiary companies
under ICB.
 Page no-3

Objectives of ICB:

 To encourage and broaden the base of investment.

 To develop the capital market.
 To provide for matters ancillary thereto.
 To mobilize savings.
 To promote and establish subsidiary companies for business expansion.

Mission and Vision of ICB:

It’s vision is to continue the leading, responsible and environment friendly financial institution
operating in such a way that the fellow competitors and the society watch, acknowledge, admire and
emulate as a successful and model organization in this sector.
It’s mission is to transfer the corporation into a reasonable institution, a financial architect, an
innovative solution provider and performance leader.

Strategies of ICB:

 To act on commercial consideration with due regard to the interest of industry, commerce,
depositors, investors and to the public in general.
 To provide financial assistance to projects subject to their economic and commercial viability.
 To arrange consortium of financial institutions including merchant banks to provide equity
support to projects and thereby spread the risk of underwriting.
 To develop and encourage entrepreneurs.
 To diversify investments.
 To induce small and medium savers for investment in securities.
 To create employment opportunities.
 To encourage Investment in IT sector.
 To encourage Investment in joint venture capital/project.
 Page no-4

Functions and roles of ICB:

 Underwriting of initial public offering of shares and debentures.
 Underwriting of right issue of shares.
 Direct purchase of shares and debentures including placement and equity
participation.
 Providing lease financing to industrial machinery and other equipment singly or by
forming syndicate.
 Managing existing investment accounts.
 Managing existing mutual funds.
 Managing portfolio of existing business.
 Providing advance against ICB unit and mutual fund certificates and ICB AMCL unit
fund certificates.
 Providing consumer credit.
 Providing bank guarantee.
 To act as trustee and custodian.
 Participating in and financing of joint-venture companies.
 Providing investment counseling to investors.
 Participating in government divestment program.
 Introducing new business products suiting market demand.
 To supervise the activities of the subsidiary companies.
 Dealing in other matters related to capital market.

Functions
and Roles of
ICB
 Page no-5

Organizational Structure of ICB

 Page no-6

Executive committee Audit Committee

Chairman Chairman
Dr. Md. Kismatul Ahsan
Professor, Md. Abdul Jabber
Department of Finance Managing Director & CEO
University of Dhaka Janata Bank Limited.
Chairman, Board of Directors
Investment Corporation of Bangladesh Member

Member Md. Habibur Rahman Gazi

Md. Abul Hossain Managing Director & CEO
Managing Director Bangladesh Development Bank Limited.
Investment Corporation of Bangladesh
Md. Afzal Karim
Md. Azimuddin Biswas Managing Director & CEO
Additional Secretary Sonali Bank Limited.
Financial Institutions Division
Ministry of Finance Md. Murshedul Kabir
Government of the People's Republic of Managing Director & CEO
Bangladesh Agrani Bank Limited.

Dr. Md. Kabir Ahmed Md. Harun-Or-Rashid (Additional Secretary)

Executive Director Managing Director
Bangladesh Bank Sadharan Bima Corporation.
 Page no-7

Shareholding position

From the last updated information on ICB website

 Page no-8

Evolution of 1st Generation mutual fund

1. Pioneer - On April 25, 1980 ICB launched the country's first mutual fund in
Bangladesh
2. Market leader - Only institution pay 1000% dividend and a total of BDT 2468.30
million as dividend
3. Capital size - A total capital of BDT 177.50 million
4. Net Asset Value - Current NAV 3406.00 million

Current scenario of mutual fund industry in Bangladesh

Asset under
Mutual Close-ended Open-ended
management
funds (BDT in million)

Mutual funds 36 69 1,47,600.00

in Bangladesh

ICB managed 09 16 71,701.00

mutual funds
 Page no-9

Awards and recognition:

 Best represented annual report Award in 2020. Dr. Md. Kismatul Ahsan chairman of
the board and Md. Abul Hossain, Managing Director received the award from Mr.
Tipu Munshi, the honorable minister, Ministry of Commerce of Bangladesh.

 Memento of tax card in 2018 and 2019 awarded by NBR.

 Page no-10

Conclusion:

In almost all the areas, ICB’s performance was improving in comparison to the past few
years. Dividend payment, Net operating income, Operating profit, the amount of its
investment in the main operational areas has also been increased. In terms of lease financing,
Project commitments etc. The amount of allocation is also increasing. By playing significant
role in the above field ICB has emerged as a key role player in the capital market of
Bangladesh.

During 47 years of operation, ICB has come forward as a responsible and trust for the public
sector institution that focuses on the fulfillment of countries interest. ICB is now perfectly
positioned to enter into the international area.

References

 https://en.wikipedia.org/wiki/Investment_Corporation_of_Bangladesh

 https://www.academia.edu/12363323/

Assignment_Point_Solution_for_Best_Assignment_Paper_Report_on_Investment_Co

rporation_of_Bangladesh_ICB

 https://en.banglapedia.org/index.php/Investment_Corporation_of_Bangladesh

 https://icb.gov.bd/

 https://www.scribd.com/doc/58748424/A-Brief-Research-on-Investment-Corporation-

of-Bangladesh

THE END