Demutualisation Scheme
Ctg bourse wants more brokers in board
The Chittagong Stock Exchange on Tuesday proposed that the Bangladesh Securities and Exchange Commission should increase the number of member-brokers in its board once the bourse is demutualised.
CSE president Al Maruf Khan told this after the final hearing over the demutualisation scheme of the port city bourse. The CSE made the proposal as the capital market regulator in the bourses’ demutualisation schemes finalised by it on September 10 reduced the board size of the Dhaka and Chittagong stock exchanges to 13.
The BSEC also kept four posts for the member-brokers of the Dhaka Stock Exchange and the CSE in the demutualised boards.
The DSE and the CSE in the draft schemes submitted by them to the BSEC on July 29 had proposed 19-member boards, including 9 posts for the member-brokers and 10 for the independent directors.
The BSEC in the finalised schemes which were sent to the bourses on September 12 kept seven posts from independent directors, one from strategic investors and the rest one for the chief executive officer. The regulator also gave the CEO voting power.
The CSE in its hearing at the BSEC proposed that the regulator should keep seven posts for the bourse’s shareholders (member-brokers) in the demutulised board, one post for the strategic partner, eight posts for the independent directors and one post for the chief executive officer, CSE president said.
He said, ‘We have also proposed that the regulator should keep eight posts for the independent directors in the board and scrap voting power of the CEO.’
CSE vice-presidents MKM Mohiuddin and Abu Sayed Md Shahidullah, directors Tareq Kamal, Mohammed Mohiuddin and CEO Syed Sajid Husain were also present at the hearing.
-With New Age input
