Rahman has transferred the responsibility of a TREC holder representative as per DSE rules, so there is no conflict of interest
The Dhaka Stock Exchange (DSE) on Tuesday said the appointment of Md. Rakibur Rahman, chairman of the brokerage house Midway Securities, to the board of the Central Counterparty Bangladesh (CCBL), the clearing and settlement company, has been done by the book.
In a rejoinder signed by Kazi Sanaul Hoq, the outgoing managing director of the DSE, the bourse said that the allegations of irregularities came to its knowledge after some news dailies and online news outlets questioned Rahman's appointment.
As per rule 18(cha) of schedule 2 of the BSEC Clearing and Settlement Rules, 2017, a trading participant or its representative is not qualified for the directorship of the CCBL.
Rahman, a DSE director, was a representative of both the Trading Right Entitlement Certificate (TREC) holders and shareholders of the bourse. But he later transferred the responsibility of a TREC holder representative as per DSE rules.
Because of this change, Rahman is currently only a shareholder representative of the DSE and not a TREC holder representative.
The previous board of directors of the DSE nominated two shareholder-directors as DSE representatives on the CCBL board and one of them is Rahman. His appointment as the director of CCBL is subject to the approval of the BSEC, the DSE said.