Stocks
With DSE and CSE boards disbanded, what lies ahead?
In an unprecedented move, the Bangladesh Securities and Exchange Commission (BSEC) verbally instructed all independent directors of the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) to resign, according to BSEC sources.
Both exchanges were demutualised in 2013 to separate ownership from management, with the regulator appointing independent directors to their boards.
Since the implementation of the demutualisation scheme, this marks the first instance of all independent directors being compelled to resign following the political regime change when the Sheikh Hasina-led government stepped down on 5 August amid mass protests.
No formal order was issued, but on 20 August the independent directors were verbally instructed to resign through the managing directors of the exchanges, according to a BSEC official.
Speaking anonymously to the news media, the official said that the commission intends to appoint all new independent directors now as the Nomination and Remuneration Committee (NRC) at the bourses is no longer functional.
Typically, independent directors were appointed based on recommendations from the NRC, which provided a shortlist of interested applicants.
Following the regulator’s verbal instruction, all independent directors of the DSE resigned on 21 August. However, as of now, the independent directors of the CSE have not yet resigned, according to exchange officials.
A CSE official confirmed that some independent directors have already resigned, with others expected to follow suit by today.
Meanwhile, the BSEC yesterday formed two probe committees to review the operations of both the DSE and CSE, with plans for significant reforms. Both committees have been tasked with submitting its report within 20 working days.
Stock exchanges become defunct!
To ensure neutrality, enhance corporate governance, and improve business efficiency, independent directors were appointed to the boards of the stock exchanges.
Each board comprises 13 members: seven independent directors, five shareholder directors (including a seat for strategic investors), and the managing directors as ex-officio members.
According to the Board and Administration Regulations of 2013, independent directors must constitute the majority on all board committees, including holding the chairmanship, thus securing a strong role in the committees’ decisions and functions.
The regulations stipulate that a quorum requires one-third of the board of directors, with the majority of those present being independent directors.
Since all directors were compelled to resign, the boards of the bourses are now defunct. The boards will not meet the quorum requirements until new independent directors are appointed.
Sattique Ahmed Shah, acting managing director of the DSE, told the news media, “With all the independent directors resigning, only the shareholder directors remain on the board, including the representative of the strategic investor who holds a 25% stake in the DSE.”
When asked about the next steps, he said, “With all the independent directors having resigned and no NRC in place, we are awaiting instructions from the regulator.”
“The bourse will follow the regulator’s directives on these matters,” he added.
Probe bodies formed to inspect bourses
The stock market regulator has formed two separate probe committees to investigate the operations of the DSE and CSE as part of a major reform effort.
These committees will assess why the exchanges have not functioned as required under the rules. Following the receipt of the inspection reports, the BSEC will take appropriate actions based on the findings.
The DSE probe committee is led by BSEC director Md Abul Kalam and includes additional director Mollah Md Miraz Us Sunnah, deputy director Md Bony Yeamin Khan, and assistant director Muhammad Sadequr Rahman Bhuiyan.
For the CSE, the inspection committee is led by BSEC director Mohammed Fakhrul Islam Mazumder. The committee also includes additional director Mohammed Siddiqur Rahman, deputy director Md Rafiqunnabi, and assistant director Md Sazzad Hossain.
The regulator has instructed that the stock exchanges must fully cooperate with the committee’s audit activities. This involves providing requested information, granting access to the premises without delay, and maintaining all security protocols.
The committee is expected to submit its report to the Commission within 20 working days from the date of the order.
Who were the Independent Directors at DSE and CSE?
At the DSE, the independent directors were Hafiz Md Hasan Babu, Abdullah Al Mahmud, Md Afzal Hossain, Rubaba Dowla, Md Shaheedul Islam, Kawser Ahmed, and Brigadier General M Imran Hamid.
The independent directors at the CSE were Abdul Halim Chowdhury, Kaashif Reza Choudhury, Monjurul Ahsan Bulbul, Ishter Mahal, Mohammad Naquib Uddin Khan, and Rezwanul Huque Khan.
Dhaka Stock Market DSE, Bourse on the last working day of the week, 12th September, ended with a mixed performance in Indices and hike in Turnover from the previous working session. This information is known from DSE sources.
733 crore 39 lakh taka shares were traded on this day. 108 crore 23 lakh more tradings were done in DSE today compared to the previous workday, 11th September, Shares worth Tk 625 crores 15 lakh shares were traded last time, Wednesday.
The benchmark DSEX added 12.55 points or 5,726 The Shariah-based index DSES gained 4.76 points or 1,245 and the blue-chip index DS30 decreased by 7.05 points or 2,100.
Of the issues traded, 158 advanced, 181 declined and 58 remained unchanged.
Paper Processing & Packaging Limited ranked top gainer on DSE, the share price increased by Tk 12.80 paisa or 9.98 percent. On this day, the share was last traded at Tk 141.00 paisa.
Confidence Cement PLC ranked top loser on the DSE, the share price dropped by Tk -5.00 paisa or 6.82 percent. On this day, the share was last traded at Tk 68.30 paisa.
DSE topped on trade is Linde Bangladesh Limited 61 crore 65 lakh takas of company shares have been traded.
A total of 31 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 41 lakh 19 thousand 413 shares of the companies were traded. The financial value of which is 54 crore 78 lakh taka.
The Financial Institutions Division (FID) under the Ministry of Finance has decided to terminate ATM Tariquzzaman from his role as commissioner at the Bangladesh Securities and Exchange Commission (BSEC). According to an official FID order issued on Wednesday (11 September), he will receive a three-month notice before his dismissal, with his tenure ending on 10 December.
Tariquzzaman had only been appointed as BSEC commissioner on 8 May, following his resignation as Executive Director of the commission. In September 2023, he briefly served as Managing Director of Dhaka Stock Exchange (DSE) before stepping down to take the BSEC role.
The development comes in the wake of the fall of the Hasina-led government on 5 August, after which BSEC Chairman Shibli Rubayat Ul Islam, along with Commissioners Shaikh Shamsuddin Ahmed and Rubana Islam, resigned. However, Tariquzzaman and fellow Commissioner Mohsin Chowdhury chose not to relinquish their positions.
In response, the interim government appointed Khondoker Rashed Maqsood as BSEC chairman, with Ali Akbar and Farzana Lalarukh joining as commissioners.
The political transition also triggered upheaval in the Dhaka Stock Exchange. According to BSEC and DSE sources, seven independent directors of the DSE resigned following the fall of the previous government, creating legal complications for the commission in selecting replacements. The BSEC disregarded the DSE’s recommendations and on 1 September appointed independent directors unilaterally, sparking discontent among DSE shareholders who viewed the decision as arbitrary.
Sources indicated that ATM Tariquzzaman had played a significant role in BSEC’s decision-making, which included appointing independent directors KAM Majedur Rahman, Helal Uddin, and Nahid Hossain—all of whom faced allegations of conflicts of interest. Majedur and Helal were accused of having ties to brokerage houses, while Nahid Hossain, as Additional Secretary of the Financial Institutions Division, was deemed ineligible under the law to serve as an independent director. Majedur Rahman has since refused the position.
The DSE Brokers Association expressed concerns in a letter dated 5 September, accusing the BSEC of making “anti-investor, non-transparent, and self-serving” decisions, leading to instability in the capital market. The association called for a revision of the selection process for appointing independent directors, urging the invocation of Clause 24 of the Demutualisation Act 2013 to form a Nomination and Remuneration Committee with four elected DSE directors to recommend candidates for BSEC’s approval.
Dhaka Stock Market DSE, Bourse on the fourth working day of the week, 11th September, ended with a mixed performance in Indices and hike in Turnover from the previous working session. This information is known from DSE sources.
625 crore 15 lakh taka shares were traded on this day. 62 crore 43 lakh more tradings were done in DSE today compared to the previous workday, 10th September, Shares worth Tk 562 crores 72 lakh shares were traded last time, Wednesday.
The benchmark DSEX added 11.12 points or 5,713 The Shariah-based index DSES gained 5.56 points or 1,240 and the blue-chip index DS30 decreased by 6.92 points or 2,107.
Of the issues traded, 64 advanced, 289 declined and 44 remained unchanged.
Shinepukur Ceramics Limited ranked top gainer on DSE, the share price increased by Tk 1.60 paisa or 10.00 percent. On this day, the share was last traded at Tk 17.60 paisa.
Prime Textile Spinning Mills Limited ranked top loser on the DSE, the share price dropped by Tk 1.50 paisa or 9.32 percent. On this day, the share was last traded at Tk 14.80 paisa.
DSE topped on trade is Agni Systems Limited 32 crore takas of company shares have been traded.
A total of 33 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 10 lakh 62 thousand 781 shares of the companies were traded. The financial value of which is 36 crore 38 lakh taka.
