Central Counterparty Bangladesh Limited (CCBL) has rejected concerns of the Dhaka Stock Exchange (DSE) over the lack of governance and transparency as well as operational inefficiencies at the clearing and settlement company.

Instead, the CCBL alleged that its activities are being delayed due to the activities of other parties like the DSE, the company said in a detailed statement regarding these concerns last week.

Farhad Ahmed, managing director and CEO of CCBL, confirmed that they issued the statement through letters to the concerned authorities, including the DSE and Bangladesh Securities and Exchange Commission (BSEC).

The DSE had written to the BSEC earlier this month, calling for an immediate halt to the procurement activities of CCBL on grounds of its poor governance.

In response, CCBL said the DSE raised concerns that several of its procurement decisions were taken against the country's best interests, exposing critical technology infrastructure to external vulnerability.

"But a little more detailed explanation would help us better understand the issue. All major stakeholders, including the DSE, CSE and CDBL, are using similar infrastructure, and CCBL is no exception," it added.

A "CCP Formation Committee" was created at the initial stage with the DSE chairman acting as its committee chairman while the bourse's managing director and CEO was its member secretary. Additionally, several members were officials of the Chittagong Stock Exchange (CSE) and various banks.

"None of these members have raised the issue of not ensuring the best interest of the country by exposing critical technology infrastructure to external vulnerability," CCBL said.

Regarding the nearly three-year delay in starting operations, CCBL said a total of 535 days elapsed for the appointment of independent directors, which was a delay from the BSEC side.

And after the constitution of the first CCBL board, another 302 days were lost for reasons associated with the DSE. For instance, the bourse delayed the replacement of its nominated directors for the CCBL.

Additionally, it took the Central Procurement Technical Unit (CPTU) 112 days to provide an opinion on the Request for Proposals from DSE nominated directors.

Regarding the DSE's observation that it has no interaction between CCBL and its stakeholders, CCBL said it holds sufficient discussions and takes written feedback from major stakeholders like the DSE, CSE and Central Depository Bangladesh Limited (CDBL).

CCBL informed that till date, it has held a total of 63 board meetings and innumerable committee meetings with the participation of DSE nominated directors.

"No meeting of CCBL was ever held without their participation," it said.

The DSE also gave an observation that there were irregularities in sharing quarterly and annual financial statements of CCBL with the bourse.

CCBL firmly rejected this stance, saying all the reports were sent.

DSE Chairman Mominul Islam said the bourse is not blaming CCBL for anything, but rather is simply urging it to review all these issues.

The DSE is not only the largest shareholder, but also the largest stakeholder of CCBL, which is a nationally critical infrastructure of the country, he added.

Islam informed that due to its importance, the DSE Brokers Association has urged the bourse to monitor whether CCBL is taking good decisions.

Furthermore, Islam said CCBL informed that it maintains the international standard in operations.

"Whether it is possible to make better decisions or buy infrastructure for less, we want to go ahead with the discussion [with CCBL]. So, hopefully we will be together soon," he added.