Bourses get approval for independent directors

The boards of Dhaka and Chittagong bourses yesterday got a go-ahead of the regulator for their independent directors.
Bangladesh Securities and Exchange Commission gave consent to each seven independent directors for the twin bourses, both of which submitted two separate lists consisting 14 names for the posts.
The stockmarket regulator selected seven from the lists after scrutiny, and allowed them to be the independent directors of the demutualised stock exchanges, BSEC officials said. The appointment of independent directors is mandatory as per a demutualisation scheme, approved by the regulator in September last year.
A 13-member board including the independent directors will be formed for each of the demutualised stock exchanges.
The remaining six will include four directors from the bourse's shareholders, one from strategic investors' category and the bourse's chief executive officer, who would have voting rights.

One independent director will be selected as chairman of the board.
Four shareholders were elected directors of the Dhaka Stock Exchange on Wednesday, while the Chittagong Stock Exchan-ge will hold polls today to elect the four directors from its shareholders.
Demutualisation is a way of separating management of the bourses from ownership. It transforms a stock exchange into a profit oriented company owned by shareholders and ensures alternative business models and operational efficiency.
A law on demutua-lisation was passed in parliament on April 29 last year with a promise to bring transparency to the stockmarket.
Bangladesh's stock exchanges were non-profit cooperative organisations owned by the exchange members, who are usually stockbrokers.