Dhaka, Bangladesh (BBN)- Dhaka Stock Exchange in a board meeting on Tuesday formed a seven-member demutualization cell to support the 15-strong committee it had formed last year to complete the bourse’s demutualization process, according to a DSE office order.
The DSE made the move after the parliament had passed the Demutualization Act on Monday.
The DSE will now have to submit a demutualization scheme to the Bangladesh Securities and Exchange Commission within 90 days of the gazette publication of the act.
The demutualization committee would conduct all the necessary works as per the guidelines of the board while the cell would support the committee to accelerate its work, a member of the demutualization cell told New Age, a local newspaper.
DSE board and corporate affairs secretary Shaikh Mohammadullah will lead the demutualization cell while three general managers, two deputy general managers and the bourse’s law consultant make the remaining six.
The Demutualization Act says independent experts would hold the posts of chairmen of the Dhaka and Chittagong stock exchanges, not the owners-cum-directors of the bourses.
The BSEC will formulate the rules for appointing independent experts as bourse directors while capital market experts will apply to the commission for appointment as members of the boards of directors of the stock exchanges.
The management of a stock exchange must hold elections to its board of directors within 90 days from the date of its demutualization.
BBN/SSR/AD-04May13-1:20 pm (BST)