BSEC forms committee to probe allegations against DSE top officials

The Bangladesh Securities and Exchange Commission (BSEC) has launched an inquiry into allegations of financial irregularities, corporate governance lapses, recruitment violations and involvement in securities trading against senior officials of the Dhaka Stock Exchange (DSE).

The capital market regulator recently ordered an investigation to verify the allegations and assess whether any violations occurred.

According to the BSEC order, the inquiry is being conducted in the broader interest of the capital market and to strengthen governance in the DSE’s administrative operations. The probe follows complaints raised by a shareholder member of the stock exchange and will examine various aspects of its financial management, corporate governance and recruitment practices.

The inquiry will examine whether senior DSE officials, including the chief operating officer (COO) and general managers, have been directly or indirectly involved in securities trading or related businesses. Investigators will also look into whether their family members or close associates are involved in capital market-related businesses where they may have a relationship of trust with the officials concerned.

The recruitment and reappointment of senior officials will also come under scrutiny. Investigators will review the roles of the relevant DSE committees, including the Resource Appointment Committee and the Nomination and Remuneration Committee, as well as the managing director.

The probe will further examine appointments to contractual positions, the recruitment of advisers and the reappointment of senior officials to determine whether any irregularities or decisions contrary to applicable rules took place.

BSEC will also assess whether the confidentiality provisions under the Securities and Exchange Ordinance, 1969, were properly followed. The investigation will specifically examine whether DSE management and senior officials maintained the confidentiality of information obtained in the course of their duties.

Three BSEC officials have been assigned to conduct the inquiry: Director A.S.M. Mahmudul Hasan, Additional Director Mohammad Shamsur Rahman and Assistant Director Md Matiur Rahman.

Under the commission’s order, the inquiry team must complete its investigation and submit a report within 30 working days from the date the order was issued.