BSEC unwilling to allow DSE board to continue until polls
Wednesday, October 9, 2013
The securities regulator has said that it is not logical to allow the existing board of the Dhaka Stock Exchange (DSE) to continue until holding an election for formation of a new board in line with the bourse's demutualisation scheme.
But the existing DSE board has sought to continue until holding the election, as there is no mention about an interim board in the demutualisation law.
"The securities regulator has not accepted the list of existing directors who will be on the first board of a demutualised DSE. That's why I think there is no logic to accept the existing board as the first board," said Professor Helal Uddin Nizami.
He said the DSE proposal would not come into effect unless a regulatory decision goes in favour of the premier bourse.
Meanwhile, the Bangladesh Securities and Exchange Commission (BSEC) has sought the opinion of the ministry of finance (MoF) on the first board of a demutualised DSE.
The DSE board on Wednesday decided that a proposal would be placed in the extraordinary general meeting (EGM) on October 29 to the effect that the 24 existing directors would also be there on the 'interim board' of a demutualised DSE.
Minhaz Mannan Emon, a DSE director, said as per the Section 11 (a) of the Exchanges Demutualisation Act, 2013 an election would be held within ninety days since the date of demutualisation of an exchange.
"But there is no term of interim board in the law. So, where is the problem with allowing the existing board to continue until the election?" Mr. Emon told the FE.
He said: "The DSE board has no tendency to hang on to their positions violating the rules and regulations."
"We have abided by all conditions mentioned in the law and scheme. If there is no clause on interim board, then why will not the existing board be allowed to continue until the election?" Emon said.
Mr. Emon also said so far the DSE board continued to extend its cooperation and would continue its assistance in completing the process of demutualisation successfully.
The securities regulator approved the demutualisation schemes of the two bourses in the country on September 26. As per schemes approved, each of the bourses will have a 13-member board, where independent directors will be the majority.
Tags:
BSEC,
CSE,
De-mutualisation,
DSE
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