Brokers association proposes reforms

The DSE Brokers Association (DBA) has made a set of proposals, including amendments to the demutualisation act.

After a meeting at the office of the Bangladesh Securities and Exchange Commission (BSEC), DBA President Saiful Islam said many provisions, including the appointment of seven independent directors, to the exchange's boards were not time-befitting.

Both the stock exchanges formed a new company, namely Centre Counterparty Bangladesh Limited (CCBL), in May 2018 to enable payment system against the shares sold through the trading platform.

But the company is yet to start operation and the DBA on Monday urged the BSEC to start the CCBL's operations immediately.

In absence of the CCBL, the bourses presently settle payments through different panel banks.

The securities regulator approved a draft act on formation of a separate clearing and settlement entity in 2015 for ensuring smooth settlement of securities and future contracts.

The DBA made another proposal to allow stock brokers to invest beyond their area of business to minimise investment risks.

The other proposals made by the DBA include the introduction of un-editable back office software for stock brokers, amending the rules for stock brokers, dealer and authorized representatives, and the listing of good companies.

BSEC Chairman Khondoker Rashed Maqsood chaired the meeting attended by the commissioners.

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