Demutualisation Scheme
DSE, CSE must include strategic partner in board
Bangladesh Securities and Exchange Commission is likely to finalise the demutualisation schemes of the Dhaka and Chittagong bourses including a provision that a strategic partner of the bourse will be on the board, which will be a 12-member body.
The commission will also empower the chief executive officers of the respective exchange to cast vote in the decision making of the board of directors, BSEC officials said.
The BSEC came to the decision after a four-member committee of the commission this week placed their recommendations on the schemes submitted by the bourses earlier.
The commission decided to cut the board size to 12-member, from 19-member proposed by the bourses, said sources in the BSEC.
The board will now have 6 independent directors, one strategic partner, four member-brokers and the CEO. The strategic partner of the DSE can be any local and foreign company which will buy into some of the stakes of the bourse.
The tenure of the independent directors of the Dhaka and Chittagong stock exchanges will be three years. The bourses in their respective schemes proposed the one-year term.
No sub-committees of the bourses can be formed by including member-brokers of the bourse due to their conflict of interests. The bourse would be able to form four to six sub-committees for different purposes.
The bourses in the demutualisation scheme submitted on July 29 had proposed separate 19-member boards, including 10 independent directors and 9 from the bourse’s members.
Senior officials of the BSEC told New Age that the commission had decided to inform the bourses at a hearing today about the issues it had noticed in the proposed demutualisation scheme which was submitted by the bourses on July 29.
The BSEC will hold the final on September 24, before approving the scheme by September 29.
-With New Age input