Financial adviser Dr. asked for an investigation on the material activities of the capital market in the last 15 years (from 2010 to 2024). DSE Brokers Association of Bangladesh (DBA) has written to Salehuddin Ahmed. Along with this, the main capital market of the country Dhaka Stock Exchange (DSE) Demutualization Act, 2013 and the re-evaluation of the Dhaka Stock Exchange Demutualization Scheme along with the equality inquiry in the appointment of board directors of DSE.

The letter signed by DBA President Saiful Islam was submitted to the Finance Adviser’s office on Sunday (September 1). A copy of the letter was provided to the Chairman of Bangladesh Securities and Exchange Commission (BSEC).

It is stated that under the Dhaka Stock Exchange Demutualization Act, 2013 and the Dhaka Stock Exchange Demutualization Scheme, there is a provision to appoint 7 (seven) independent directors on the DSE Board. The chairman of the board is appointed from among the 7 independent directors. On the other hand, 250 (two hundred and fifty) shareholders of DSE elected 4 (four) shareholders to join the board as directors. As a result of the majority of 7 (seven) independent directors including the Chairman, they have sole dominance and influence in any decision of the capital market including DSE. As a result of such numerical disparity between individual directors and shareholder directors, DSE has become a dysfunctional institution since 2013 due to differences and discrimination in the activities and decisions of DSE.

In the letter, the DBA has made three recommendations to the Finance Advisor to make DSE an independent, strong and effective institution and to strengthen the role of DSE in the development of the capital market.

Recommendations include- re-evaluation of the existing Dhaka Stock Exchange Demutualization Act, 2013 and Dhaka Stock Exchange Demutualization Scheme; The Board of Directors of DSE creates equality among the members by providing for the appointment of 6 (six) independent directors and 6 (six) shareholder directors and appointing a ‘Chairman’ from among the shareholder directors.

Also, the DBA has recommended setting up an inquiry committee on the material activities of the capital market during the last 15 years (from 2010 to 2024) to restore investor confidence in the market.