Dhaka Stock Exchange in a board meeting on Tuesday formed a seven-member demutualisation cell to support the 15-strong committee it had formed last year to complete the bourse’s demutualisation process, according to a DSE office order issued on Thursday.
The DSE made the move after the parliament had passed the Demutualisation Act on Monday.
The DSE will now have to submit a demutualisation scheme to the Bangladesh Securities and Exchange Commission within 90 days of the gazette publication of the act.
The demutualisation committee would conduct all the necessary works as per the guidelines of the board while the cell would support the committee to accelerate its work, a member of the demutualisation cell told New Age.
DSE board and corporate affairs secretary Shaikh Mohammadullah will lead the demutualisation cell while three general managers, two deputy general managers and the bourse’s law consultant make the remaining six.
The Demutualisation Act says independent experts would hold the posts of chairmen of the Dhaka and Chittagong stock exchanges, not the owners-cum-directors of the bourses.
The BSEC will formulate the rules for appointing independent experts as bourse directors while capital market experts will apply to the commission for appointment as members of the boards of directors of the stock exchanges.
The management of a stock exchange must hold elections to its board of directors within 90 days
from the date of its demutualisation.
-With New Age input