President Ahmed Iqbal Hasan’s writ petition.
The DSE has not yet fixed the date of holding the EGM for beginning the demutualisation process in line with the Demuatulisation Act.
Ahmed Iqbal in his writ petition had claimed that the way adopted by the DSE for demutualisation was contradictory to the Act.
“After consulting with lawyers, fresh date to hold EGM will be announced as early as possible,” said DSE President Ahsanul Islam Titu.
The EGM is meant for adopting some regulations, including approval of a 24-member “interim board” of the prime bourse in line with the demutualisation process.
Recently, Bangladesh Securities Exchange Commission (BSEC) allowed existing DSE board of directors to continue until the DSE’s annual general meeting.
In the EGM, the bourse is supposed to adopt new memorandum of association and articles of association in line with the demutualisation scheme, replacing the existing ones.
Adoption of the new memorandum of association means disallowing any shareholder of the bourse to enter into the DSE office without getting permission from the proper authorities, according to a DSE circular.
The demutualisation is a way of separating the bourses’ management from ownership and to bring transparency and accountability into the market. It is going to transform the two bourses from their current non-profit, co-operative state into profit-oriented entities.