The securities regulator has been unable to function for nearly two weeks in absence of three key members -- two commissioners and chairman - keeping issuers and other stakeholders in limbo.
Orders on issues that require approval of the commission will remain suspended until it gets at least three members. The commission comprises four commissioners led by its chairman.
Five days after the ouster of the Sheikh Hasina-led government, Prof Shibli Rubayat Ul Islam stepped down as chairman of the Bangladesh Securities and Exchange Commission (BSEC).
Two days later, two BSEC commissioners -- Shaikh Shamsuddin Ahmed and Rumana Islam - resigned. Hence, the commission now has only two members left. The absence of the quorum has kept many decisions on urgent issues hanging.
"We've continued our routine work and refrained from taking decisions about issues that require consent from the commission," said ATM Tariquzzaman, a BSEC commissioner.
Applications filed by issuers, stock brokers, merchant banks, issue managers, and mutual funds will not be attended to unless the securities regulator becomes fully functional. Moreover, the operations of both the Dhaka and Chittagong stock exchanges are hampered.
For example, a significant number of listed companies, which follow the calendar year in preparing financial statements but failed to submit their latest quarterly results by the deadline - July 30, sought a 15-day time extension.
"But we are yet to get any reply to our letter [seeking time extension] from the securities regulator," said Md. Amzad Hossain, secretary general of the Bangladesh Association of Publicly Listed Companies (BAPLC).
The BAPLC said the companies had been unable to complete their financial statements for April-June (Q2) this year due to countrywide shutdown and Internet blackout for five days since July 19. The association submitted an application on behalf of the companies on July 25.
Preferring anonymity, a senior official of the securities regulator said he used to place at least four files per day before the commission.
"Now, I'm sitting idle as my tasks require permission from the chairman or the commission," the official said.
A quorum in the commission is a must for approving matters, such as IPOs (initial public offers), inquiry and dividend offers. Even to demand an explanation from the issuers, the quorum is needed.
The BSEC official said a large number of files had remained stuck as "we are unable to work in absence of the commission".
Managing Director of the Chittagong Stock Exchange (CSE) M Shaifur Rahman Mazumdar said the bourse had submitted drafted regulations of the commodity exchange. Also, there are many pending amendments to different rules, including that of the public issue rules.
The bourse has not received any regulatory decision on the matters in absence of the quorum.
"The problem should be solved immediately to restore operations of the securities regulator," Mr Mazumdar said.
Meanwhile, the government appointed Dr. M Masrur Reaz, an economist, as chairman of the securities regulator on Tuesday last week.
On the same day, the BSEC employees' welfare association opposed the appointment based on social media "rumours" about his relationships with an adviser to former prime minister Sheikh Hasina.
In a statement, the association said it would not welcome the new chairman.
However, a subsequent statement from a majority of the association's executive committee said they would accept the government's decision.
Mr Reaz was to join the BSEC on Sunday but expressed regrets the day before, saying he would rather work on necessary policy reforms for the economy.
On Sunday, the government appointed Khondoker Rashed Maqsood, a banker, as chairman of the securities regulator.
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