Dhaka Stock Exchange yesterday submitted a list of 14 individuals to the securities regulator as candidates for the seven independent directors of the demutualised bourse.
Bangladesh Securities and Exchange Commission (BSEC) will select seven of them to be independent directors of the premier bourse, said a DSE official.
After necessary regulatory approval, the independent directors will be inducted into the bourse through the DSE’s annual general meeting scheduled for February 13.
Earlier, DSE shortlisted the individuals from around 50 people, including university teachers, former and incumbent chief executives of different institutions, former Bangladesh Bank governors, former BSEC chairmen and leaders of chambers and associations.
After the AGM, a 13-member new board will take charge as per a demutualisation scheme, which was approved by BSEC on September 26 last year.
The new board would consist of seven independent directors, five from DSE shareholders and the bourse’s chief executive officer, who would have voting rights. The tenure for each director and the chief executive officer will be three years.
Demutualisation is a way of separating management of the bourses from ownership. It transforms a stock exchange into a profit-oriented company owned by shareholders, and ensures alternative business models and operational efficiency.
A law on demutualisation was passed in parliament on April 29 last year with a promise to bring transparency to the stock market.
Bangladesh’s stock exchanges were non-profit cooperative organizations, owned by the exchange members who are usually stockbrokers