Stock brokerage firms have urged the Bangladesh Securities and Exchange Commission (BSEC) to reconsider the appointment of seven independent directors to the Dhaka Stock Exchange.

In a letter, the DSE Brokers Association (DBA) yesterday said the stock market regulator can apply clause 24 of the Demutualization Act 2013 to form the nomination and remuneration committee (NRC) comprising four elected directors holding office.

"Let the NRC follow the procedure to provide their recommendations to the BSEC," it said.

This will help create an investor-friendly market and allow the DSE to act independently to nominate a diverse set of potential candidates, the DBA added.

According to the scheme, the BSEC gives final consent to the candidates they think are appropriate for ensuring the interests of the DSE and capital market.

Recently, the BSEC applied clause 24 to appoint seven independent directors.

When the DBA sought legal advice, it appeared that clause 24 could have been more effectively and appropriately applied to form/reconstitute the NRC of the DSE to follow through with the process and comply with the demutualization scheme.

Bangladesh's capital market has been in a precarious situation due to shady and selfish decisions taken by the last two commissions over the past 15 years which went against the interests of investors, the DBA said.

"Investors, both local and international, expect and believe that we will have a transparent, investor-friendly market during the interim government and that the BSEC would act as a democratic regulator and help restore their confidence," it added.

In the wake of the current situation, the DBA requested to reconsider the selection process of the appointment of the seven directors.