BSEC suspends Ctg bourse's regulatory officer

Bangladesh Securities and Exchange Commission has temporarily suspended the chief regulatory officer of the Chittagong Stock Exchange and warned the bourse's chairman not to violate the demutualisation law again in future.

The stockmarket regulator also accepted the resignation letter of CSE Managing Director Wali-ul-Maroof Matin, who stepped down from the post two years ahead of his tenure's expiry over internal conflict.

The BSEC came up with the decisions on Wednesday following a probe report on the conflict between the port city bourse's management and the board of directors.

Earlier on December 9, the regulator formed a three-member panel to investigate the reasons of resignation of the CSE's managing director.

Matin initially cited “irreconcilable differences with a few unduly decision-influencing persons in the organisation”, but later showed “personal ground” as the cause for his resignation.

The regulatory probe found that Ahmad Dawood, chief regulatory officer of the CSE, failed to perform his duties duly, according to a letter issued on Wednesday.

Dawood was involved in unlawful activities and he broke the organisation's discipline, though he was not permitted to do so under the demutualisation act, the probe found.

The regulator will take the final decision on Dawood after giving him the opportunity to explain the reasons behind his failure to carry out his responsibilities, according to the letter.

Contacted, Dawood refused to make any comment on the issue. “I do not want to give any comments as the legal process is ongoing and I am respectful to the law.”

The regulatory probe also found that the CSE chairman and some other directors intervened on the management activities in some cases.

This was in violation of the spirit of the demutualisation law, which separated the stock exchanges' management from their ownership in a bid to ensure transparency and accountability in the capital market.

Such kind of activities of the chairman and the directors of the board are not acceptable to the regulator in any case, the BSEC said in the letter.

The CSE board's failure in taking decisions and directions also hampered the discipline of the bourse's management, the regulator said in the letter, while instructing the chairman and other directors of the board to refrain from any such practice in future.

CSE Chairman Muhammad Abdul Mazid was not immediately available for comment.