The DSE Brokers Association (DBA) has urged the interim government to establish a task force dedicated to the development and reform of the capital market.
In a letter submitted to Finance and Commerce Adviser Dr Salehuddin Ahmed on Sunday, DBA President Saiful Islam emphasised the need for a collaborative meeting with all key stakeholders, including the stock market regulator, to address market challenges.
Highlighting similar task forces formed for banking and economic reforms, the DBA called for swift action to ensure the capital market aligns with the interim government’s goals for sustainable growth.
"We trust that you will promptly consider setting up a task force dedicated to the reform and advancement of the capital market, ensuring alignment with the interim government's strategic goals and objectives," read the letter issued by the platform of Trading Right Entitlement Certificate (TREC) holders of the premier bourse.
Earlier last week, the DBA requested the Bangladesh Securities and Exchange Commission (BSEC), the securities regulator, to reconsider the recent appointment of seven independent directors to the Dhaka Stock Exchange (DSE) board.
The stock brokerages stated that any unilateral decision conveys a more explicit message, otherwise to the market and thus to the local and international investors.
In a letter signed by DBA President Saiful Islam, he called on the BSEC Chairman Khondoker Rashed Maqsood, “We again submit our prayer to your good self to kindly exercise 'Clause 24 of the Demutualization Act 2013' to form the NRC comprising the four existing elected directors of the DSE and allow them to provide the DSE nominations.
The platform also noted that out of the seven proposed directors, the appointment of the three directors has created a lot of ambiguity due to their previous involvements with the stock brokerage and TREC holders and their position in the super regulatory authority.
BSEC, by all means, will have the final authority to select seven directors out of the nominations to be submitted by the to-be-formed Nomination and Remuneration Committee (NRC).
The NRC could be reconstituted as per the Demutualization Scheme 2013 at the very first meeting of the new board.
‘Global practice and standard’
The DBA president said that the country's central bank has been running without its managing director, chief operating officer, and chief technology officer (CTO) for many months, which poses a high market risk.
The last two commissions have purposefully made the DSE dysfunctional, forced it to act by passing the rules and regulations, and removed all its authority to function correctly.
“We expect and believe the current BSEC-formed post-student-led revolution will act with a very opposite philosophy and make the DSE independent, effectively functional, and the "primary regulator" to maintain the "global practice and standard" considering our market's greater interest and development," the DBA president added.
Earlier, on Thursday, DBA urged the Bangladesh Securities and Exchange Commission (BSEC) to reconsider the selection process of the appointment of the seven independent directors in line with clause 24 of the Demutualization Act 2013.
In the letter signed by DBA President Saiful Islam, the association called on the BSEC chairman to appoint independent directors by forming a NRC comprising four elected directors.
The letter said that the capital market has been in a precarious situation due to the anti-investors, non-transparent, and self-interested decisions of the last two commissions that lasted 15 years.
The investors, both local and international, expected and believed that they would have a transparent and investor-friendly market during the interim government and that BSEC would act as a democratic regulator and help restore the confidence of the investors, it said.
The letter added that BSEC gives the final consent to the candidates they think are appropriate for the interest of the Dhaka Stock Exchange (DSE) and the capital market. “Let NRC follow the procedure to provide their recommendations to BSEC.
“This will help create an investor-friendly market and allow the DSE to act independently to nominate diversified potential candidates,” it said.
On September 1, BSEC appointed seven independent directors to the board of DSE after the resignation of all directors following a change in the political regime.
