The Bangladesh Securities and Exchange Commission has put bar on the stock exchanges from trading any fixed assets until the completion of demutualisation of the bourses.
The stock market regulator on Thursday issued a directive in this regard.
According to the directive, the stock exchanges are not permitted to
purchase, sell or transfer any fixed assets of the
DSE and the CSE before completion of demutualisation.
In case of any emergency, prior approval of the commission will be needed for such activities, the directive said.
‘We have taken the move following a media report that one member of a stock exchange was trying to be the chairman of a bourse after the demutualisation to take control over the stock exchange,’ a BSEC official told New Age.
‘To achieve the target, the member of the bourse has already started the process to sell his membership to become a legal candidate for being a chairman as per the demutualisation act.’
As per the demutualisation act, which was passed in the parliament on May 29, 60 per cent directors of the stock exchanges will be independent and the rest 40 per cent will be from the members of the bourses.
An independent director will be the chairman of the stock exchange, as per the act.
As per the act, the DSE will have to submit the scheme and business plan to the regulator within 90 days of gazette notification.
The scheme includes memorandum of article including the qualification of the directors, primary shareholders’ list and allocation of shares from them, board and administration regulations, proposal for the first board of directors, revaluation of the assets and liabilities of the stock exchanges, fixing the number of shares on the basis of face value of Tk 10 each share and minimum three years of business plan.
-With New Age input
