2024-09-13 11:06:36
The controversy over the appointment of independent directors of the country’s main capital market Dhaka Stock Exchange (DSE) is not stopping. KAM Majedur Rahman, the chairman of Maldives Islami Bank, who has already been appointed due to controversy, and Research Director of the Center on Integrated Development for Asia and the Pacific (SIRDAP) Dr. Md. Helal Uddin has stepped down from the post of Independent Director of DSE.
However, the additional secretary of the controversial financial institution department. Nahid Hossain has not yet resigned from the post of Independent Director of DSE. As a result, the stakeholders of the capital market are not satisfied with this matter. Therefore, without wasting time, the people involved in the capital market demand that independent directors be appointed quickly in accordance with the law, excluding controversial people.
Meanwhile, the regulatory agency Bangladesh Securities and Exchange Commission (BSEC) has sent a letter to the Secretary of the Financial Institutions Department of the Ministry of Finance on September 4 to resolve the complications of appointing independent directors of DSE. In the letter BSEC mentioned the complications with the appointment of AM Majedur Rahman. Md. Helal Uddin and Dr. Nothing mentioned about Nahid Hussain. However, KAM Majedur Rahman and Dr. KAM Majedur Rahman and Dr. Md. Helal Uddin stood aside.
In such a situation, the leaders of DSE Brokers Association of Bangladesh (DBA) have written a letter demanding BSEC to reconsider the matter in view of the controversy surrounding the appointment of DSE Independent Director. At the same time, the organization called for the appointment of independent directors of DSE by following the Demutualization Act.
Meanwhile, the complaint of the capital market, the additional secretary of the financial institution department. Nahid Hossain should remove himself from the position of independent director of DSE in the interest of capital markets and investors. Because there has been dissatisfaction and differences of opinion among the people related to the capital market regarding his appointment. Apart from this, according to sub-section (j) of section 5 of DSE Regulation, 2013, Additional Secretary Dr. Nahid Hossain’s appointment is not valid.
Sub-section (j) of Section 5 of DSE Regulations, 2013 states that no employee of a regulatory body can be an independent director of DSE. Even, as per clause 4.2(e) 6 of the Demutualization Scheme, no person who is or was associated with a trackholder or shareholder of a stock exchange can be an independent director of DSE. Meanwhile, it is stated in (E) 7 that anyone who has been involved as an employee or director in any stock market intermediary organization (including merchant banks and asset management companies) within the last 3 years can be an independent director. Further, clause (e) 10 states that no employee of a regulatory body can be an independent director of DSE.
Despite having a clear law why BSEC KAM Majedur Rahman, Dr. Md. Helal Uddin and Additional Secretary of the Financial Institutions Department of the Ministry of Finance. Those concerned feel that the appointment of Nahid Hossain as an independent director of DSE is causing a storm of criticism in the capital market.
Meanwhile, Dr. Nahid Hossain is alleged to be a direct student of former BSEC chairman Shibli Rubaiyat-ul-Islam. Beneficiaries from various institutions, the head of the share market department of the Ministry of Finance. Nahid Hossain. He has been in the same position for a long time. He has been instrumental in the appointment of Shibli Rubaiyat for a second term as Chairman in BSEC.
If you want to know about this, Associate Professor of Accounting and Information Systems Department of Dhaka University and capital market expert Dr. Al Amin told RisingBD that the Demutualization Act was not properly followed in appointing independent directors of DSE. Therefore, none of the stakeholders of the capital market are satisfied with the issue. Therefore, BSEC should not take any decision which creates controversy. This reduces the confidence of investors in the capital market. It should be viewed very seriously in the current context of the capital markets. BSEC will be spared from criticism if an independent director of DSE is appointed without much delay and follows the law properly. BSEC should be more cautious in any future decision-making.
Kazi Abdur Razzak, general secretary of Bangladesh Capital Market Investors’ Unity Council, told RisingBD that the people who have created controversy over the appointment of independent directors of DSE should be removed quickly. Investors’ confidence will not be restored if DSE is run with controversial figures.
The former director of DSE Brokers Association of Bangladesh told RisingBD on condition of anonymity that the additional secretary Dr. Nahid Hossain has been supervising the stock market in the Ministry of Finance for a long time. A conflict of interest may arise due to his inclusion as an independent director of DSE. He is accused of working in connivance with former chairman Shibli Rubaiyat-ul-Islam. Therefore, it is necessary to fill the vacant posts of individual director of DSE by excluding him.
When asked about this, BSEC Director and Spokesperson Farhana Faruqi told RisingBD that KAM Majedur Rahman and Dr. were appointed as independent directors of DSE. Md. Helal Uddin resigned from their post. BSEC will now decide on the appointment of independent director of DSE as per the directives of the finance ministry.