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Dhaka, July 28, 2025 — The Dhaka Stock Exchange (DSE), Bangladesh’s premier bourse, continues to face a leadership vacuum as the appointment of a new Managing Director (MD) remains unresolved for over a year, stalled by internal politics and governance challenges.

The position has been vacant since May 2024, when Dr. ATM Tariquzzaman left the role to join the Bangladesh Securities and Exchange Commission (BSEC) as a commissioner. Despite two public recruitment drives, the DSE board has failed to identify a suitable candidate, citing a lack of qualified applicants.

However, insiders and former MDs suggest the issue runs deeper. Many point to persistent interference by shareholder directors and a culture of political influence and internal lobbying that have made the MD role increasingly unattractive for qualified professionals.

A Pattern of Premature Departures

Since 1998, 11 management heads of the DSE have resigned before completing their tenures. Only two managing directors and one CEO have served full terms. The latest departure of Kazi Sanaul Hoq in 2021—just 11 months into his tenure—underscores the growing instability at the top.

Mr. Hoq said he resigned after facing undue pressure to support a flawed IPO proposal by Best Holdings Ltd, the operator of Le Meridien Dhaka. Despite red flags identified by the DSE management, shareholder directors allegedly pushed for a positive opinion to ease regulatory approval from the BSEC.

“I was caught between board pressure and corporate lobbying,” said Mr. Hoq. “My professional judgment and independence were being undermined. I had no choice but to leave for the sake of my career.”

The IPO proposal was eventually suspended for two years before the BSEC approved it in 2023, allowing the company to raise Tk 3.5 billion despite violations of public issue rules.

Undermined Authority and Poor Governance

The DSE’s demutualisation was designed to separate ownership from management and improve governance. However, several former MDs told The Financial Express that the reality remains starkly different.

“Management has little freedom to operate independently,” said former MD KAM Mazedur Rahman. “The MD works under pressure from both the regulator and shareholder directors, many of whom pursue self-interest.”

Independent directors, often politically appointed, have been accused of using insider information for personal gain. A widely cited case involves former independent director Dr. Abdullah Al Mahmud, who allegedly executed large transactions while on the board, violating market regulations.

Moreover, the Chief Regulatory Officer (CRO)—who is supposed to oversee compliance—reports directly to the BSEC, bypassing the MD. This structure further limits the MD’s ability to supervise internal operations or intervene in regulatory matters.

Acting Leadership: A Temporary Fix or Strategy?

With no permanent MD in place, the DSE has been operating under acting leadership drawn from within its own ranks. Critics argue that this arrangement benefits the board, as acting MDs are not bound by contracts, performance targets, or accountability measures.

“Acting MDs are more pliable and loyal to the board,” said a former DSE executive. “And it’s also cheaper—not hiring a permanent MD reduces overhead costs.”

At present, two other key positions—Chief Financial Officer (CFO) and Chief Regulatory Officer (CRO)—are also vacant, further eroding the governance structure.

Recruitment Dilemma

DSE Director Md Shakil Rizvi said that around 20 candidates had been interviewed over the past year, but none met the required standards.

To resolve the impasse, the DSE now plans to engage professional recruitment agencies to scout for eligible candidates.

However, some candidates question the transparency of the selection process. One applicant, Nizam U Ahmed—a former deputy general manager at DSE who later worked with global fintech firm FLEX TRADE and the World Bank—expressed his frustration.

“I proposed floating DSE’s shares within a year of appointment—something that should have been done by 2018,” said Mr. Ahmed. “I’m still not sure what more the board is looking for.”

What’s at Stake?

With the DSE operating without permanent leadership, concerns are growing over the bourse’s ability to function effectively, attract investment, and safeguard market integrity.

“The leadership void, if prolonged, will have long-term consequences for investor confidence and market stability,” said a capital market analyst. “The board must prioritize governance over internal politics.”

Unless the governance challenges are addressed and the role of MD is empowered in line with the demutualisation objectives, experts warn that the DSE may continue to suffer from strategic drift—hampering its role as the cornerstone of Bangladesh’s capital markets.