KAM Majedur declines to join DSE as independent director
He, along with six others on 1 September was appointed as independent directors of the DSE
KAM Majedur Rahman, the chairman of Maldives Islami Bank, has declined to take charge as an independent director on the Dhaka Stock Exchange (DSE) board amid controversy arising regarding his appointment.
Majedur, who earlier served the DSE as managing director, wrote to the Bangladesh Securities and Exchange Commission (BSEC), declining the offer.
He, along with six others on 1 September was appointed as independent directors of the DSE.
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Meanwhile, the existing shareholders directors of the DSE met with the Bangladesh Securities and Exchange Commission (BSEC) today, and urged the commission to form the DSE's board quickly.
The BSEC, the stock market regulator, on 1 September appointed seven independent directors on DSE's board. However, controversy arose regarding the appointment of two– KAM Majedur Rahman and Helal Uddin.
On 4 September, the BSEC wrote to the Financial Institutions Division (FID) seeking guidance from the government regarding Majedur. The commission has yet to get a response from the FID.
Md Shakil Rizvi, a shareholder director of the DSE, told The Business Standard that conflicts of interest have arisen regarding two independent directors' appointments. As Majedur turned down the appointment, Shakil said there were allegations against another director.
"We have also requested that a woman and a chartered accountant be appointed to these two director positions," he added.
DSE shareholders objected to Majedur Rahman's appointment because he served as a director at AK Khan Securities from December 2020 to October 2022, and is currently the CEO of AK Khan and Company Ltd, and the owner of AK Khan Securities.
Similarly, they raised objections against Helal Uddin's appointment, noting that he had served as an independent director at ICB Securities Trading Company from May 2013 to May 2023.
As per the Dhaka Stock Exchange (Board and Administration) Regulations 2013, a person cannot be considered an independent director if they have had a business relationship with the stock exchange — either directly or indirectly — as a partner, substantial shareholder, or director of an entity with such a relationship in the preceding three years.
The regulations also disqualify anyone with connections to TREC holders, shareholders of the stock exchange, its directors, or anyone who has been an employee of a regulatory body.
Meanwhile, the DSE Brokers Association in a letter to the BSEC on 5 September said the capital market has been in a precarious state and urged the regulator to reconsider the selection process for appointing the seven directors.
