BSEC forms inquiry committee to investigate top DSE officials
Graphics: Agamir Somoy
The Bangladesh Securities and Exchange Commission (BSEC), the regulatory body of the country's bourses, has formed an inquiry committee to investigate various allegations on financial irregularities, corporate governance lapses, irregularities in appointments, and share-trading-related issues against the top officials of the country's premier stock exchange, the Dhaka Stock Exchange (DSE).
This information was conveyed in an order issued on Monday (August 10) by the BSEC's Inspection, Enquiry and Investigation Department.
The inquiry has been ordered under Section 21 of the Securities and Exchange Ordinance, 1969, and Rule 17 of the Securities and Exchange Rules, 2020. The three-member inquiry committee comprises BSEC Director A S M Mahmudul Hasan, Additional Director Mohammad Shamsur Rahman, and Assistant Director Md. Matiur Rahman. The committee has been instructed to complete its inquiry activities and submit a report to the commission within 30 working days from the date of the order.
Regarding the matter, Al-Amin, a professor of the Accounting Department, told Agamir Somoy, "It is very important to see whether anyone from the DSE is involved in trading on the stock market. If anyone is involved in this, it is a very big problem for the stock market. Besides, it also needs to be examined whether appointments at the DSE were made properly. Because during the Awami League era, many appointments were not made properly. There are even allegations that appointments at BSEC were made based on the recommendation by Chhatra League."
The BSEC order said the commission believes it is necessary to conduct an inquiry into the recent allegations raised against the top officials of the DSE to ensure the sound administration of the country's stock market and in the interest of the broader capital market.
According to the BSEC's Terms of Reference, the inquiry committee will investigate allegations of widespread financial irregularities, corporate governance deficiencies, and irregular appointments against DSE Shareholder Member No. 141, Don Securities.
Additionally, the inquiry will cover allegations of involvement in share trading by the DSE's Chief Operating Officer (COO), General Managers, and other top officials, as well as their or their family members' involvement in any other stock-market-related business and potential conflicts of interest.
The inquiry will also review the roles of the DSE's Regulatory Affairs Committee (RAC), Regulatory Affairs Division (RAD), Nomination and Remuneration Committee (NRC), and the Managing Director—specifically examining their roles in contractual appointments, reappointments, advisory appointments, and the appointment process of top officials.
Furthermore, the inquiry will verify whether the DSE's management and top officials have duly followed the secrecy clause under Section 19 of the Securities and Exchange Ordinance, 1969. If deemed necessary, the committee may also investigate other related matters.
