The Dhaka Stock Exchange Brokers Association on Thursday slammed independent directors of the board of the country’s premier bourse, accusing them of playing questionable role in approving Kazi Sanaul Hoq as the bourse’s managing director and the listing of the companies with weak fundamentals.
The 14-member DBA board led by its president Sharif Anwar Hossain met the DSE board on Thursday where they inquired about the recent issues.
The DBA members criticised that the appointment of Sanaul was not made with due diligence, ignoring more efficient candidates.
They also raised question how fundamentally weak companies were listed on the stock exchange without their financial accounts being thoroughly assessed.
DSE chairman Abul Hasem responded to the queries, saying that the appointment of Sanaul and the listing of companies were made in accordance with the rules and regulations, and if anyone was not satis fied with the bourse’s decisions, he/she could file case with court.
There are seven independent directors, a managing director and five shareholding directors in the DSE board. Hasem is also an independent director.
Among the DSE directors, three shareholding directors Shakil Rizvi, Mohammad Shahjahan and Minhaz Mannan Emon, and one independent director Waliul Islam had opposed the selection of Sanaul.
Hashem and DSE shareholding director Rakibur Rahman played the vital role in selecting Sanaul as the DSE’s managing director.
DBA president Sharif said at the meeting they raised question what role the independent directors were playing in the DSE board and why the market was in prolonged downward trend.
‘What benefits the DSE has got after its demutualisation that has given the independent directors authority?’ he questioned.
The DBA representatives also raised question how fundamentally weak companies got listed on the stock exchange and what was the independent directors’ role in this regard, he said.
Market experts said most of the companies listed on the stock exchange were fundamentally weak, which allegedly forged and fabricated their financial documents for issuing initial public offerings and their listing on the stock exchange was one of the prime reasons for the current market situation.
A number of DSE members said that Sanaul was appointed without following due diligence.
‘Why the DSE board has to pick such a controversial figure as its managing director?’ they questioned.
A number of DSE members expressed unhappiness about his salary. They raised question why Sanaul was selected when more efficient and skilled persons had applied for the job.
The Bangladesh Securities and Exchange Commission on Wednesday approved the DSE’s controversial selection of Sanaul as its managing director despite opposition of a number of DSE directors.
On January 8, the board of directors of DSE selected Sanaul amid a heated debate with strong opposition from three shareholding directors and an independent director who questioned the selection process and competency of Sanaul.
A number of DSE members said that the appointment of Sanaul would be violation of the rules.
The approval of Sanaul as DSE managing director came at a time when the capital market is in turmoil because of lack of investors’ confidence in the BSEC.
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