TIB blasts attempt to manipulate DSE bidding

Transparency International Bangladesh (TIB) on Friday condemned an Indian bidder's attempt to influence the process to determine a strategic investor for Dhaka Stock Exchange (DSE), as published in different media.

The TIB also slammed the role of Bangladesh Securities and Exchange Commission (BSEC) in this connection, as the regulator, too, tried to exert pressure on the DSE to nominate a firm of its choice.

The anti-graft watchdog demanded that the particular firm be blacklisted and the authorities bring the masterminds behind the move to book, with a view to bringing discipline to the country's volatile stock market that has been plagued by irregularities.

In a statement, TIB executive director Iftekharuzzaman said finding the perfect fit as a strategic investor is of paramount importance to ensure sound functioning of the the prime bourse.

He lamented that the BSEC, which was supposed to play the role of the protector, was in fact working in connivance with a firm taking part in the bidding.

He said BSEC's advocacy for a firm that is way behind the leading bidder is unprecedented and this unacceptable attempt goes against the law as well.

"If the second best firm is awarded the deal it will ruin the credibility of the bourse, both nationally and globally," Iftekharuzzaman observed.

The TIB boss said the government should ensure that the DSE board can function maintaining the best ethical practices.

The recent incident has led to loss of public trust in the bourse and a quarter might be on the prowl to cash in on this, but the government has to be vigilant, he added.

India’s National Stock Exchange had reportedly offered 15 taka ($0.18) per share during a tender process this month for a 25 per cent stake in the bourse’s 1.8 billion shares.

China’s Shanghai and Shenzen stock exchanges made a joint higher bid of 22 taka ($0.26) per share, or $122 million, and “also offered technical support worth nearly $37 million”, AFP news agency quoted DSE chief executive Majedur Rahman as saying.