Stocks
Capital Market Stakeholders Urge BSEC to Reconsider Director Appointment Process
In light of ongoing concerns over the state of Bangladesh’s capital market, stakeholders have submitted a formal request to the Bangladesh Securities and Exchange Commission (BSEC), urging reconsideration of the selection process for appointing independent directors under Clause 24 of the Demutualization Act, 2013. This comes amidst growing frustration among investors, both local and international, who believe the market has been hampered by decisions taken by the last two commissions over the past 15 years.
The letter, addressed to BSEC Chairman Khondoker Rashed Maqsood, highlights the precarious situation in the capital market due to what is described as anti-investor, nontransparent, and self-serving decisions made by previous commissions. Investors had initially hoped that the interim government and BSEC would take a more transparent and investor-friendly approach to regulating the market. Instead, recent actions have fueled concerns.
At the heart of the issue is the application of Clause 24 of the Demutualization Act, which BSEC has used to appoint seven independent directors. However, stakeholders argue that the clause could have been more appropriately applied to the formation and restructuring of the Dhaka Stock Exchange’s (DSE) Nomination and Remuneration Committee (NRC). This would ensure compliance with the Demutualization Scheme while making the process more transparent.
The stakeholders are requesting that BSEC reconsider its decision and follow a more democratic procedure. They propose that Clause 24 be used to form an NRC composed of four elected directors currently holding office. This NRC would then be responsible for providing BSEC with a list of recommended candidates for the board, from which BSEC could select those who are in the best interest of both the DSE and the broader capital market.
Dhaka Stock Market DSE, Bourse on the second working day of the week, 30th September, ended with a negative performance in Indices and a hike in Turnover from the previous working session. This information is known from DSE sources.
503 crore 90 lakh taka shares were traded on this day. 22 crore 58 lakh more tradings were done in DSE today compared to the previous workday, 29th September, Shares worth Tk 481 crores 31 lakh shares were traded last time, Sunday.
The benchmark DSEX lost 33.61 points or 5,624 The Shariah-based index DSES dropped 7.36 point or 1,263 and the blue-chip index DS30 decreased by 9.57 points or 2,053.
Of the issues traded, 72 advanced, 299 declined and 25 remained unchanged.
Shahjibazar Power Company Limited ranked top gainer on DSE, the share price increased by Tk 4.00 paisa or 9.76 percent. On this day, the share was last traded at Tk 45.00 paisa.
Dhaka Electric Supply Company Limited ranked top loser on the DSE, the share price dropped by Tk 1.80 paisa or 7.56 percent. On this day, the share was last traded at Tk 22.00 paisa.
DSE topped on trade is Pragati Life Insurance Limited 25 crore 35 lakh takas of company shares have been traded.
A total of 27 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 50 lakh 42 thousand 956 shares of the companies were traded. The financial value of which is 65 crore 60 lakh taka
One of the Listed companies, National Polymer Limited has recommended 10.50% Cash Dividend for the year ended June 30, 2024.
It has reported Consolidated EPS of Tk 2.27 paisa, and Consolidated NAV per share of Tk 30.63 for the year ended March 31, 2024.
The Annual General Meeting (AGM) of the company will be held on December 18, through the digital platform. The record date for this has been fixed at October 22.
The Company also discloses its financial reports for the second quarter, (April – June 24).
As per the company’s consolidated life revenue account for April to June 2024, the excess of total income over total expenses, including claims (surplus), stood at Tk 1,394.24 million. This marks a significant increase from the surplus of Tk 823.68 million during the same period in 2023.
For the first half of 2024, from January to June, the company reported a surplus of Tk 2,177.57 million, compared to Tk 1,290.39 million in the corresponding period of the previous year.
Additionally, the Life Insurance Fund balance as of June 30, 2024, reached Tk 55,188.62 million, showing a net increase of Tk 5,892.25 million from Tk 49,296.37 million on June 30, 2023.
One of the Listed companies, Beacon Pharmaceuticals PLC has recommended 20% Cash dividend and 10% Cash Dividend to Sponsor Shareholder and Directors for the year ended June 30, 2024.
It has reported EPS of Tk 2.26 paisa, and NAV per share of Tk. 26.37 for the year ended June 30, 2024.
The Annual General Meeting (AGM) of the company will be held on December 23, through the digital platform. The record date for this has been fixed at October 27.
