The securities regulator, on Tuesday, turned down a proposal about the appointment of a new managing director (MD) of the Dhaka Stock Exchange (DSE), observing that the candidate is not experienced enough for the post.
The Bangladesh Securities and Exchange Commission (BSEC) will now send a letter to the country's premier bourse in this regard, said sources at the regulator.
The commission deemed that M Asheq Rahman, a young banker who was proposed by the DSE, had no adequate experience and credibility about the stock market, added the sources.
A BSEC official said that the managing director of any stock exchange is a vital post.
"He is not capable enough for that post. The commission wants an inexperienced managing director for the exchange," he added.
This appointment does not comply with the Dhaka Stock Exchange (Board and Administration) Regulations, sources also said.
Sources said an influential shareholder director, allegedly at the centre of all the recent controversies at the country's oldest bourse, is again responsible for the latest crisis.
The name of M Asheq Rahman was proposed because the applicant is a friend of the influential person's son and would remain obedient to him, the sources added.
The shareholder director forced the Nomination and Remuneration Committee (NRC) to select Asheq as the MD from 21 candidates, they continued.
The committee proved to be heavily influenced by the shareholder director during the appointment process of existing managing director Kazi Sanaul Hoq, the sources said.
However, the NRC could not discard the second candidate, Dr Mohammad Anamul Haque Sarker, as he has been the executive director at the London Stock Exchange since 2013 and deserves preference for his academic and professional background, the sources added.
Following the NRC's recommendation to interview two candidates, the DSE board of directors finalised Asheq as the new managing director, despite the majority not liking Anamul's elimination from the race, the sources continued.
Meanwhile, DSE Director Xie Wenhai, who represents the Chinese strategic investor Shenzhen-Shanghai stock exchange consortium, opined that the two candidates seem unfit for the MD post. Instead, they are suitable for the exchange's chief regulatory officer post.
Xie suggested the DSE board consider internal candidates and give some encouraging policies to them.