The Bangladesh Securities and Exchange Commission (BSEC) has appointed two new independent directors to the Dhaka Stock Exchange (DSE) board, following a dispute that prevented the previous appointees from assuming their positions. Additionally, seven independent directors have been appointed to the Chittagong Stock Exchange (CSE). These decisions were made during a commission meeting held on September 18, 2024.

According to a press release from BSEC, the newly appointed independent directors for the DSE are AF Nesaruddin, partner at Hoda Vasi Chowdhury and Co., and Syeda Zakeerin Bakht Nasir, chief consultant and CEO of Z N Consultants. They will replace KAM Majedur Rahman and Helal Uddin, who were unable to take up their roles due to concerns over their appointments violating board regulations. Both individuals have since declined their positions.

The seven independent directors appointed to the CSE are Alamgir Morshed, CEO of Infrastructure Development Company; Professor Saiful Islam from BUET; AKM Habibur Rahman, former managing director of Teletalk; Professor Mahmud Hassan from North South University; M Zulfiquar Hussain, CEO of Grow n Excel; Naznin Sultana, Finance Director at Asian University for Women; and Farida Yasmin, Deputy Secretary at the Financial Institutions Division.

This reshuffling follows a political shift in early August, after which the BSEC verbally requested all independent directors from both the DSE and CSE to resign. On September 1, the BSEC had already appointed seven independent directors to the DSE, though none have yet assumed their roles.

The DSE board, as per the demutualisation scheme, consists of 13 members: seven independent directors, five shareholder directors (one representing strategic investors), and the managing director, who serves as an ex-officio member.

Khan Brothers PP Woven Bag Industries Ltd. has officially announced the signing of a Memorandum of Understanding (MOU) with BSB Cambrian Education Group. The agreement, finalized on September 18, 2024, at the company’s registered office located on the 10th floor of 15 DIT Road, Malibagh Chowdhurypara, Dhaka, paves the way for a significant management transition.

Under the terms of the MOU, BSB Cambrian Education Group has expressed a voluntary interest in taking over the management and operational responsibilities of Khan Brothers PP Woven Bag Industries Ltd. This transition will be executed through the acquisition of shares from the current Board of Directors at a mutually agreed-upon value. The move is aimed at ensuring a smooth and efficient transfer of control between the two parties.

The agreement was formally executed and witnessed by the authorized representatives of both organizations, marking a crucial step in the company’s future direction.

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.