DSE yet to find a 'worthy' Managing Director

Infographic: TBS

The Dhaka Stock Exchange (DSE) has not been able to find a suitable candidate for the post of managing director in more than three months after the last office-bearer resigned in September.

Since the last managing director (MD) Tarique Amin Bhuiyan quit over a "dissent" with the Board of Directors, the country's premier bourse has been interviewing numerous interested candidates for the past few months but none of them has been considered qualified for the job, according to sources at the DSE.

A member of DSE's Nomination and Remuneration Committee (NRC), on condition of anonymity, told The Business Standard (TBS), "The DSE is a private limited company which is governed by an Act. It has not got the kind of competent and qualified leadership it needs to run this institution well."

He also said none of the eight persons interviewed including the Acting MD of DSE on 19 December was recommended for appointment.

Currently, DSE's Chief Operating Officer M Saifur Rahman Majumdar is serving as the acting MD of the stock exchange. 

The previous two managing directors of the DSE resigned before the end of their terms in the last two years.

After serving for about a year, the last MD Tarique Amin Bhuiyan tendered his resignation last August due to a "conflict" with the board, effective from 8 September.

Kazi Sanaul Hoq, who was earlier appointed for three years, resigned after 10 months of taking charge of the office, citing personal reasons.

Normally, the DSE can appoint an MD within 90 days of vacancy due to resignation or expiry of the term.

However, it seems to have difficulties in finding the director within the stipulated time. the DSE fails to appoint an MD during this time, Bangladesh Securities and Exchange Commission (BSEC) can appoint the MD of the bourse if it wants.

Will DSE ask for more time or BSEC will appoint one?

The 8th of December marked the end of three months since the last MD Tarique Amin Bhuiyan's resignation took effect last September.

The DSE applied to BSEC for an extension of time.

In view of that application, the capital market regulator has extended the time for appointing an MD by one month, which will end on 8 January 2023.

However, the appointment will not be possible during this period as the NRC has not recommended anyone for the post among the interested candidates as of 26 December.

As per law, the DSE will again seek time from the commission.

A DSE official, wishing not to be named, told TBS that a decision on this matter may be taken in the next board meeting.

After the MD post fell vacant, the DSE issued a circular on 6 October, inviting applications from eligible candidates.

A total of 18 candidates applied for the post so far, and eight of them were interviewed by the NRC.

According to DSE Board and Administration Regulations-2013, the managing director will be selected by the NRC, which will also be recommended by the board.

After the recommendation of the board, the BSEC will appoint a managing director for a three-year term.