2024-09-06 15:11:28
Published: 11:23, 6 September 2024
DSE Brokers Association of Bangladesh (DBA) has urged the regulatory body Bangladesh Securities and Exchange Commission (BSEC) to enforce the demutualization law in the appointment of independent directors in the country’s main capital market Dhaka Stock Exchange (DSE).
This call was made in a letter given to the BSEC chairman on Thursday (September 5).
This information has been informed in a press release sent by DBA.
In the letter signed by DBA President Saiful Islam, Section 24 of the Demutualization Act 2013 has been applied to the appointment of 7 independent directors of the BSEC DSE Board. In this regard, we have learned with legal advice that Section 24 of the Demutualization Act can be more effectively and appropriately followed and applied to constitute or reconstitute the Nomination and Remuneration Committee (NRC) of DSE in accordance with the Demutualization Scheme. In the context of the current situation, it is requested to reconsider the two methods in the process of appointment of seven directors. The two methods are- 1. Invoking Section 24 of Demutualization Act 2013 to form NRC consisting of existing 4 elected shareholder directors. 2. To enable the NRC to follow the proper procedure for forwarding the recommendation of nomination of individual directors of DSE to BSE and in the interest of DSE and capital market, to follow the procedure of finalizing directors from BSEC as per demutualization scheme.
The letter mentioned that the Bangladesh capital market has been in a precarious situation for the last 15 years due to the anti-investor, opaque and self-interested decisions of the last two commissions. But investors, both local and international, hoped and believed that under the interim government we would have a transparent, investor-friendly market and that the BSEC would act as a democratic regulator and help restore investor confidence.
/nt/sb/