Challenge DSE MD appointment in court

Due process has been maintained in appointing the managing director of the Dhaka Stock Exchange (DSE), said its Chairman Prof Abul Hashem yesterday, suggesting those believing it to be otherwise file a lawsuit.

The Bangladesh Securities and Exchange Commission denied reappointing the former MD, KAM Majedur Rahman, and this was the third appointment attempt, for which the regulator approved of Kazi Sanaul Hoq with a majority vote, he said.

Hashem was addressing the recently elected DSE Brokers Association (DBA) top brass who were paying a courtesy call on the DSE board members at the bourse’s Motijheel office.

Most of the DBA leaders raised questions over the transparency of the appointment process. They also alleged that Hoq was not the most efficient person out of all who had applied for the post.

The DSE board comprises 13 members: one MD, seven independent directors and five shareholder-directors.

Normally, a nomination committee of the DSE makes a shortlist and sends the candidates’ curricula vitae to the board members for evaluation, said a director, requesting anonymity.

The selected candidates are then called for a panel interview with the board and the best individual is chosen, he said.

It was also alleged that even the shortlist had been manipulated, one attendee said.

“Why are low-performing companies still being listed despite a majority of the DSE board being comprised independent directors?” one frustrated stockbroker said.

“We believe the board works for the sake of investors, not for anyone else,” said another leader. One stockbroker alleged that the appointment process worsened investors’ confidence. Sharif Anwar Hossain, the DBA president, led the delegation when Richard D’ Rozario, senior vice-president, and Mohammad Ali, vice president, were present.