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High Flotation cost :For high flotation cost small entities cannot enter the market.

Information Asymmetry -Access to credible information is restricted -Syndicate of large investors manipulates the market through price inflation, pump and dump strategies Supply Side Constraints Reducing supply side constraints generates liquidity, reducing scope for price manipulation. Valuation Disparity Value of scripts is subject to speculative trading rather than sound fundamentals, resulting in market volatility. High bank deposit rates High bank interest rates deterred public borrowing by the corporate bodies, thwarting the expected development of a debt market. Lack of a Formal Debt Market -Bangladesh does not have established secondary debt market. -Markets are unable to provide short term financing solutions to corporations, i.e., commercial paper High government borrowing at high interest rates The government has traditionally been the major borrower through the various national savings schemes and that too at the highest interest rate bracket and in unlimited The government instruments were crowding out corporate borrowers and bank deposits in comparable tenures

Low long-term borrowing requirement Owing to a bitter colonial past and lack of resources, historically there was a weaker base for industrialization and related formalized commercial activities. This has kept the demand for long-term capital and credit requirement at the formal market at a lower level High bank deposit rates High bank interest rates deterred public borrowing by the corporate bodies, thwarting the expected development of a debt market.

Unaccountable trustees Owing to the absence of a clear regulatory regime, the system failed to hold the Trustees of debenture responsible for failure to defend the rights of the debenture-holders in many cases when issuing companies declined to honor obligations.

should more clearly define respective responsibilities of staffs, managers, board of directors and shareholders in the attainment of goals and establish a procedure of sanctions attached to these responsibilities. should more clearly define respective responsibilities of staffs, managers, board of directors and shareholders in the attainment of goals and establish a procedure of sanctions attached to these responsibilities. In order to increase the profitability & reduce the risk, IDLC& Investment Ltd. should maintain a well-balanced portfolio. The more diversified the portfolio, the lesser the risk of losses. It is to be keeping with mind that competitors can copy product but cannot copy the understandings & expertise. Establish priorities for capabilities for new product investment as well as better ways to minimize gaps in strategic management. should continuously redefine new demand for financial, brokerage services & ensure that this understanding is unique & actionable

Filing of the prospectus


y y y y y y y y y Printing and dispatch of prospectus and application form. Filing of initial listing application. Promotion of the issue. Statutory announcement. Collection of applications Processing of applications Allotment of shares Listing of the issue Cost of public issue

Future prospects of India


y y y y y Growth of primary market Entry of foreign investors Changing policy of financial institutions Development of debt market Corporate restructuring

y Conclusion:
y Performance evaluation of a bank actually depends on way of operation. The IDLC has a efficient internal management system to execute the operations. However there are variation in the ratios of IDLC, that may be a effect of change in investment decision and adverse economic condition. We found some of the investment decision does not match the formatted manner and for that variation occurs in some of the ratios but it varies in different financial and environmental situation. So without considering other factors those cannot be said inefficient decisions.