2024-09-03 06:16:29
Published: 22:47, 1 September 2024
DSE Brokers Association of Bangladesh (DBA) has written to the Financial Advisor seeking an inquiry into the overall performance of the capital market for the last 15 years (2010 to 2024).
At the same time, the organization has proposed equality in the appointment of directors to the board of directors of DSE along with re-evaluation of Dhaka Stock Exchange Demutualization Act, 2013 and Dhaka Stock Exchange Demutualization Scheme.
The letter signed by DBA President Saiful Islam was submitted to the Finance Adviser’s office on Sunday (September 1). At the same time, the copy of the letter has also been given to the Chairman of Bangladesh Securities and Exchange Commission (BSEC).
As mentioned in the letter, under the Dhaka Stock Exchange Demutualization Act, 2013 and the Dhaka Stock Exchange Demutualization Scheme, there is a provision to appoint seven independent directors on the DSE Board. The chairman of the board is appointed from among the seven independent directors. On the other hand, DSE’s 250 shareholders directly elected four shareholders to join the board as directors. The majority of seven independent directors, including the chairman, gives them sole dominance and influence over any decision of the capital market, including the DSE. As a result of such numerical disparity between individual directors and shareholder directors, DSE has become a dysfunctional institution since 2013 due to variation and disparity in the actions and decisions of DSE. We have made some recommendations to the Financial Advisor to make DSE an independent, strong and effective institution and to strengthen the role of DSE in the development of the capital market.
The recommendations are to re-evaluate the existing Dhaka Stock Exchange Demutualization Act, 2013 and the Dhaka Stock Exchange Demutualization Scheme.
The Board of Directors of DSE creates equality among the members by providing for the appointment of six independent directors and six shareholder directors and appointing the ‘Chairman’ from among the shareholder directors.
To restore the confidence of investors in the market, to form an inquiry committee on the overall activities of the capital market in the last 15 years (from 2010 to 2024).
Dhaka/NT/NH