Merchant bank MDs’ job can be renewed for more than once

Job contract tenure of managing director (MD) or chief executive officer (CEO) of a merchant bank can now be renewed for more than once.

The Bangladesh Securities and Exchange Commission (BSEC) has revoked a directive to extend the contract tenure to maximum once (three years).

As a result, from now on, the job tenure of the merchant banks can be renewed with the approval of the BSEC.

The decision was announced in a recent directive issued by the stock market regulator.

The directive issued by the BSEC on January 30, 2020 stated that the term of the first appointment of MD or CEO of Merchant Bank will be for three years or 65 years (whichever is earlier). In addition, this term can be extended once.

The BSEC last week cancelled the instruction. Instead, the regulatory body upheld section 37 (3) of the previous law, the Securities and Exchange Commission (Merchant Banker and Portfolio Manager) Rules, 1996.

Section 37 (3) of the Securities and Exchange Commission (Merchant Banker and Portfolio Manager) Rules, 1996 stated that the term of office of the MD or CEO of a merchant bank shall be for three years, which may be renewed with the prior approval of the commission.

However, if a person reaches the age of 65, he will not be eligible to be appointed as MD or CEO of a merchant bank.