Dhaka, Bangladesh (BBN)- Eight shareholders of Dhaka Stock Exchange (DSE) have submitted their nomination papers to contest for posts of four directors of the premier bourse, officials said.

The DSE will hold an election on February 12 to select four directors from the bourse’s existing shareholders in line with the demutualisation scheme, they added.
The candidates who have submitted their nomination papers are Ahmed Rashid Lali of Rashid Investment Services, Kazi Firoz Rashid of Kazi Firoz Rashid Securities, Khwaja Ghulam Rasul of Khwaja Equity Services, Lailun Nahar Ekram of ASENZ Securities, Mohammad Shahjahan of Jahan Securities, Mohammad Shamim Afzal of Desa Securities, Shakil Rizvi of Shakil Rizvi Stock and Sharif Anowar Hossain of Md Sahidullah Securities.

The three-member election commission headed by former district and session judge Shamsul Haque on January 8 announced the election schedule.
According to the election schedule, Wednesday was the deadline to file nomination paper to the commission.

The candidates will be allowed to withdraw their nomination papers in January 26-30.

On February 13, an annual general meeting will be held to adopt the newly-elected directors and hand over the charges to the newly-formed board of the DSE.

Along with the four directors, a 13-member new board will be formed for the demutualised stock exchange. The remaining nine directors will include seven independent directors, one from strategic investors’ category and the bourse’s chief executive officer, who would have voting rights.

The independent directors will be selected based on the ‘fit and proper’ criteria mentioned in the demutualisation scheme, which was approved by the Bangladesh Securities and Exchange Commission on September 26 last year.

Prior to holding the AGM, the DSE will have to send a list of independent directors to the BSEC for regulatory approval.

The tenure of each director and the chief executive officer will be for three years.
A law on demutualisation was passed in parliament on April 29 last year with a promise to bring transparency to the stock market.

Demutualisation is a way of separating the management of the bourses from the ownership. It transforms a stock exchange into a profit-oriented company owned by shareholders and ensures alternative business models and operational efficiency.

BBN/SSR/AD-23Jan14-1:24 pm (BST)