The Dhaka and Chittagong stock exchanges have turned into demutualised exchanges as the country’s twin bourses get certificates from the Registrar of the Joint Stock Companies and Firms (RJSC) on Thursday.
The RJSC of Dhaka and Chittagong on Thursday handed over the certificates of the public limited company, DSE and CSE sources said.
The Chittagong Stock Exchange (CSE) will be termed as demutualised stock exchange from on Thursday as the RJSC of Chittagong has handed over the certificate to the port city bourse, said Syed Sajid Hossain, CEO of CSE.
As per the Demutualisation Act-2013 and the process of demutualisation, the Dhaka Stock Exchange (DSE) got the certificate of converting into public limited company, said DSE Vice President Md Mizanur Rahman. Resultantly, the DSE turned into demutualised exchange from on Thursday, he added.
As per the demutualisation act, the bourses have to hold election within 90 days of getting certificates from the RJSC to elect 13 member boards.
Of the 13-member board with three-year term, seven directors will be independent, four from shareholders and one from strategic shareholder. In addition, the chief executive officer of a stock exchange will act as an ex-officio director having voting rights.
The DSE and CSE already have completed their EGMs on November 2 and October 25 respectively.
Earlier, Bangladesh Securities and Exchange Commission (BSEC) approved a number of documents to facilitate demutualisation of the country’s two stock exchanges, including a 13-member board each.
