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.
The Bangladesh Securities and Exchange Commission (BSEC) has initiated an investigation into Strategic Equity Management Limited (SEML), an asset management company owned by Chowdhury Nafeez Sarafat and his wife. The move comes following allegations of irregularities tied to the firm.
On September 17, the capital market regulator established a committee, led by BSEC Additional Director Md Emdadul Haque, to conduct the inquiry. Other members of the committee include Deputy Director Rafiqun Nabi and Assistant Director Md Abu Hena Mostafa.
According to sources within the regulatory agency, Nafeez, who previously served as the chairman of Padma Bank, allegedly diverted Tk245 crore from the troubled bank into SEML. This misuse of funds prompted BSEC to take swift action and initiate a detailed probe into the company’s operations.
In its notification, BSEC stated that the committee has been given a 60-working-day timeline to submit a report addressing several specific concerns. Key areas of investigation include whether SEML’s investments through the “Alternative Investment Fund of Bangladesh” adhered to regulatory guidelines and investment parameters from its inception to the present day.
The committee is also tasked with collecting concrete evidence related to all investments made by the fund. They will assess any conflicts of interest arising from dealings with individuals or entities connected to the fund manager and trustee.
Furthermore, the investigators will review official bank statements of the fund, tracking account balances at the end of each fiscal year. They will also verify any interest or profits generated from term deposits and other investments with banks or financial institutions throughout the fund’s lifespan.
The probe will examine dividends and capital gains earned from both listed and non-listed securities, and evaluate the fund’s operating expenses, including annual fees, management fees, trustee fees, and other related charges since the fund’s inception.
Additionally, the committee will seek to uncover any illicit payments made from the fund’s accounts that may have benefited the fund manager or other parties. BSEC has emphasized the importance of reviewing these details thoroughly.
The inquiry will also assess the roles of the fund manager and trustee in ensuring proper governance and oversight, in accordance with BSEC’s rules and the fund’s constitutive documents. The committee may address other related matters as deemed necessary during the course of their investigation.
Dhaka Stock Market DSE, Bourse on the third working day of the week, 18th September, ended with a hike in Indices and drop in Turnover from the previous working session. This information is known from DSE sources.
553 crore 65 lakh taka shares were traded on this day. 81 crore 30 lakh less tradings were done in DSE today compared to the previous workday, 17th September, Shares worth Tk 634 crores 96 lakh shares were traded last time, Tuesday.
The benchmark DSEX added 12.53 points or 5,694 The Shariah-based index DSES gained 7.49 point or 1,245 and the blue-chip index DS30 increased by 8.36 points or 2,076.
Of the issues traded, 113 advanced, 224 declined and 59 remained unchanged.
Beacon Pharmaceuticals PLC ranked top gainer on DSE, the share price increased by Tk 12.60 paisa or 9.98 percent. On this day, the share was last traded at Tk 138.90 paisa.
Premier Leasing & Finance Limited ranked top loser on the DSE, the share price dropped by Tk 0.40 paisa or 9.52 percent. On this day, the share was last traded at Tk 3.80 paisa.
DSE topped on trade is Sonali Aansh Industries Limited 25 crore 36 lakh takas of company shares have been traded.
A total of 36 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 43 lakh 94 thousand 483 shares of the companies were traded. The financial value of which is 45 crore 50 lakh taka.
1 Mutual Fund, Asian Tiger Sandhani Life Growth Fund from Dhaka Stock Exchange (DSE) have disclosed their Dividends for the year ended June 30, 2024. This source is known from the DSE official website. The Fund has recommended Null Dividend for the year ending June 30, 2024.
It has reported EPU loss of Tk 1.95 paisa, and NAV per unit at a market price of Tk. 8.31, NAV per unit at cost price of Tk. 11.25 for the year ended June 30, 2024. Record date: 08.10.2024
