KAM Majedur Rahman, the chairman of Maldives Islami Financial institution, has declined to take designate as an fair director on the Dhaka Stock Substitute (DSE) board amid controversy coming up concerning his appointment.
Majedur, who earlier served the DSE as managing director, wrote to the Bangladesh Securities and Substitute Fee (BSEC), declining the offer.
He, along with six others on 1 September modified into once appointed as fair administrators of the DSE.
Meanwhile, the prevailing shareholders administrators of the DSE met with the Bangladesh Securities and Substitute Fee (BSEC) on the present time, and entreated the commission to make the DSE’s board fast.
The BSEC, the stock market regulator, on 1 September appointed seven fair administrators on DSE’s board. However, controversy arose concerning the appointment of two– KAM Majedur Rahman and Helal Uddin.
On 4 September, the BSEC wrote to the Financial Establishments Division (FID) searching for guidance from the authorities concerning Majedur. The commission has yet to discover a response from the FID.
Md Shakil Rizvi, a shareholder director of the DSE, educated The Enterprise Peculiar that conflicts of hobby maintain arisen concerning two fair administrators’ appointments. As Majedur grew to turn out to be down the appointment, Shakil mentioned there were allegations in opposition to yet every other director.
“We maintain now also requested that a girl and a chartered accountant be appointed to these two director positions,” he added.
DSE shareholders objected to Majedur Rahman’s appointment attributable to he served as a director at AK Khan Securities from December 2020 to October 2022, and is within the intervening time the CEO of AK Khan and Company Ltd, and the owner of AK Khan Securities.
Similarly, they raised objections in opposition to Helal Uddin’s appointment, noting that he had served as an fair director at ICB Securities Trading Company from Could per chance presumably honest 2013 to Could per chance presumably honest 2023.
As per the Dhaka Stock Substitute (Board and Administration) Regulations 2013, a particular person can’t be opinion about an fair director if they’ve had a trade relationship with the stock switch — either straight or circuitously — as a partner, huge shareholder, or director of an entity with this form of relationship within the preceding three years.
The regulations also disqualify any individual with connections to TREC holders, shareholders of the stock switch, its administrators, or any individual who has been an employee of a regulatory physique.
Meanwhile, the DSE Brokers Association in a letter to the BSEC on 5 September mentioned the capital market has been in a precarious direct and entreated the regulator to reconsider the different process for appointing the seven administrators.
