TIB airs concern over 'illegal' intervention

Transparency International Bangladesh (TIB) has expressed concern over 'illegal' intervention in the selection process of a strategic partner of the Dhaka Stock Exchange (DSE).

In a statement on Friday, TIB voiced concern following media reports on 'illegal' influence by an Indian bidder and subsequent move by the regulatory body to select the Indian bidder as a strategic partner of the country's premier bourse.

A consortium of two Chinese stock exchanges - Shenzhen Stock Exchange and Shanghai Stock Exchange had offered Tk 22 per share for 25 per cent of total of DSE shares. The Chinese consortium also offered technical support worth nearly $ 37 million without any charge.

Another consortium led by National Stock Exchange of India (NSE) offered Tk 15 per share for 25.01 per cent of total DSE shares.

On February 10, the board of the directors of premier bourse approved the proposal submitted by Chinese consortium.

Later, the second highest bidder was allegedly found trying to influence the selection process through the BSEC.

However, the DSE has not changed its decisions as yet.

Terming it unfortunate and unexpected, TIB's executive director Dr Iftekharuzzaman said, "Being the regulator of the capital market, the Bangladesh Securities and Exchange Commission (BSEC) influenced the selection process of strategic partner required for the development of the capital market."

The statement said such 'interference and lobbying' for a bidder that quoted lower bidding price is not only unprecedented but also unlawful.

"Being influenced by the bidder, the BSEC worked in favour of a disqualified bidder by corrupting the bidder selection process, which is unlawful and unexpected," it added.

The statement also said the selection of the second highest bidder instead of the highest one without showing any valid reason, would provoke questions both at home and abroad.

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