A dispute over the termination of 17 officials and employees at the Dhaka Stock Exchange PLC has escalated, with former staff members seeking reinstatement and an independent review of the process, while the exchange maintains that the decisions were part of a long-term organisational restructuring.
Regulatory attention was drawn to the matter after the Financial Institutions Division of the Finance Ministry forwarded a complaint by dismissed DSE Deputy General Manager Md Abdul Latif to the Bangladesh Securities and Exchange Commission (BSEC) for necessary action under existing rules.
The ministry, in a letter dated 23 July, did not make any assessment of Latif’s allegations or express a view on the merits of his complaint. It only instructed BSEC to examine the matter and take steps according to applicable regulations.
The former employees raised their concerns at a human chain programme outside DSE’s Motijheel building on Sunday, demanding withdrawal of the termination orders and a neutral review of the process.
Allegations from the affected officials centred on the lack of prior notice, explanation and opportunity to respond before termination. They argued that the issue involved procedural fairness rather than only financial compensation.
Former DSE Deputy General Manager Hosne Ara Parveen, one of the terminated officials, questioned the basis of the decision, saying she had served the exchange for a long period and was involved in appointing many of its employees. She sought clarification on why she was removed while still serving the organisation.
Another former Deputy General Manager, Md Abdur Razzak, alleged that employees were terminated without prior notice or explanation and were disconnected from official systems following the decisions. He said their requests for reinstatement were not accepted with a detailed explanation.
Latif separately appealed to BSEC, alleging that his termination was unlawful and lacked due process.
Having served DSE for more than 20 years, Latif said he held several senior responsibilities, including acting CFO, acting chief regulatory officer, head of surveillance and head of listing affairs. He said a show-cause notice was issued to him on 16 April 2026, followed by his written response.
According to Latif’s complaint, DSE management informed him on 18 June that its review had been completed and that no disciplinary action would be taken. He said he was nevertheless terminated on 25 June, with the reason cited as his “position will no longer be required”.
The former officials also alleged that 17 employees had already been terminated and claimed that a larger group could face similar action. They questioned whether the move was solely related to cost reduction, citing recruitment activities after the terminations.
DSE rejected the allegations, saying the decisions were not disciplinary actions but part of an organisational transformation programme that has been under development since 2022.
The exchange said 17 employees were terminated from its total workforce of 350, representing less than 5 per cent of employees. The decisions were taken based on organisational requirements, efficiency and long-term institutional needs, according to its statement issued on Sunday.
Legal compliance was also highlighted by the exchange, which said the process was completed under Section 26 of the Bangladesh Labour Act 2006 and DSE’s service rules. The provision allows termination by providing notice or compensation in lieu of notice, without requiring a misconduct proceeding, according to DSE.
Financial settlements were provided beyond the statutory requirement, the exchange said. While the law requires compensation equivalent to four months’ salary in such cases, DSE said it provided six months’ salary along with final settlement benefits, including provident fund, gratuity and unused leave encashment.
The dispute now centres on the process behind the terminations. Former employees are seeking regulatory review of the decisions, while DSE maintains that the move was a lawful restructuring measure aimed at improving organisational efficiency.
