Share settlement firm required to engage bourses in operations

From now on the share settlement firm Central Counterparty Bangladesh (CCBL) will conduct activities in consultation with its major shareholders Dhaka and Chattogram stock exchanges.

The decision was made at a meeting arranged by the Bangladesh Securities and Exchange Commission (BSEC) amid an ongoing tussle between CCBL and the stock exchanges, according to sources present at the meeting.

"In addition, an evaluation committee will be formed to oversee the activities of the CCBL. After that, the company and its major shareholders will make new decisions regarding its operations," a participant in the meeting, speaking on the condition of anonymity, told The Business Standard.

The meeting was attended by directors and officials from the Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), and CCBL, according to the sources.

In December last year, the DSE urged CCBL – formed in 2019 to manage share settlements and improve the payment system – to suspend its procurement activities for installing a data centre and software for the next six months.

However, CCBL declined the DSE's request and sent a letter to the stock exchange explaining its activities.

According to sources, CCBL is set to purchase software worth $12 million from an Indian firm.

In this regard, a DSE director said, "There is a lack of clarity in the tender process for purchasing the software. There are also questions about the software's price. Considering all aspects, we have raised concerns about buying the software now."

The DSE holds a 45% stake in CCBL, while the CSE owns 20%, the Central Depository of Bangladesh holds another 20%, and 12 banks collectively own the remaining 15%.

A director of the stock exchange, present at the meeting, told The Business Standard on the condition of anonymity, "Dissatisfaction was expressed with the activities of the central counterparty company. The major shareholder of the central counterparty is DSE. Although a director of DSE was on the board of CCBL, the independent directors of DSE were not aware of the company's activities, nor were they properly informed by the board of DSE."

Therefore, DSE should be kept informed about the overall activities of CCBL, starting with software procurement. This was the topic of discussion at the meeting. It was decided that the company's activities will continue after consulting with the major shareholders, he added.

BSEC spokesperson Rezaul Karim declined to comment on the development, and no officials from CCBL were available to speak on the issue.