The Bangladesh Securities and Exchange Commission (BSEC) has asked the Dhaka Stock Exchange Limited (DSE) and the Central Depository Bangladesh Limited (CDBL) to distribute 5 per cent of their profits to their employees in accordance with the labour law.
The DSE and CDBL are told to to comply with relevant provisions of the Labour Act 2006 that stipulates profitable companies must share their annual profit with employees.
The stock market regulator in its letter on Thursday asked the managing directors of both the bourses and the depository company to comply with the said provision if it was yet to be followed and report back to the BSEC within three working days.
The regulator issued letters to the entities on Thursday in this connection and directed them to take appropriate actions for complying with the labour law. The stock market regulator asked the managing directors of both the bourses and the depository company to comply with the said provision if it was yet to be followed and report back to the BSEC within three working days.
The Chittagong Stock Exchange (CSE) has already given 5 per cent of its last financial year’s net profit to the workers' profit participation fund (WPPF).
The BSEC made the move based on Commercial Audit Directorate, Dhaka’s findings, the letter said.According to the Labour Act, 2006, a profit-making company must distribute 5 per cent of profits to its employees through the worker’s profit participation fund (WPPF).
The country’s two stock exchanges, the DSE and the Chittagong Stock Exchange, and the CDBL became profit-making organisations in 2013 through the demutualisation act. As per the Commercial Audit Directorate, Dhaka’s findings, the CDBL did not distributed to its employees 5 per cent of its profits worth around Tk 19.76 crore accumulated over the years while the DSE did not allotted Tk 2.65 crore to its employees in the financial year of 2019-20.
The directorate of commercial audit, a wing of the Comptroller and Auditor General of Bangladesh, had sent a letter to the BSEC, mentioning that the DSE had allocated Tk 2.66 crore for its WPPF for fiscal 2019-20, as the bourse was waiting for the government's opinion whether it could be exempted from the profit-sharing provision. The DSE complied with the labour law in six years from FY 2013-2014 to FY 2018-19.
The Commercial Audit Directorate, Dhaka earlier sought explanations regarding the non-compliance and also asked the two entities to submit working plans for the distribution of profits. “We have a board meeting scheduled on March 1 -- a day ahead of the BSEC deadline, where we will raise the topic there and reply to the BSEC letter in time,” said Abdul Matin Patwari, the acting managing director of the DSE.