CDBL yet to appoint CTO, COO

The Central Depository of Bangladesh Limited in last seven months took no initiative to appoint chief technology officer and chief operating officer despite having been suggested by the Bangladesh Securities and Exchange Commission to appoint the key personnel for its (CDBL) smooth functioning.
Based on the findings of a BSEC investigation conducted in November last year, the commission made the recommendation to the CDBL with which stock market investors maintain their shares in electronic form for safekeeping.
Since the completion of the investigation the stock market regulator has been repeatedly asking the organisation to appoint the officials.
Following repeated technical glitches at the CDBL, the BSEC launched the investigation.
The BSEC issued a letter to the CDBL in this regard in January this year.
The CDBL, which was incorporated in 2000 in collaboration with the Asian Development Bank, is designated for efficient delivery, settlement and transfer of securities through computerised book entry system, changing the ownership without any physical movement or endorsement of certificates and execution of transfer instruments.
The entity which presently deals with more than 29.13 lakh beneficiary owners’ accounts and share-related data of 352 companies is reluctant to appoint CTO and COO.
A senior CDBL official said that there was no reason for increasing the company’s expenses by appointing two new officials as the existing manpower was well enough to tackle its operation.
‘As we are managing everything without CTO and COO, so what the necessity of appointing such officials is,’ he said.
The CDBL, however, on a number of occasions in last couple of years failed to provide uninterrupted service.
Dhaka Stock Exchange director Md Shakil Rizvi, however, told New Age, ‘CDBL should concentrate on its primary objective — that is to ensure security for investors’ shares and smooth functioning of the organisation — rather than enhancing profit.’
For the latest instance, the CDBL, on March 12, 2015, failed to settle share transaction held at the DSE and the Chittagong Stock Exchange in time due to technical glitches.
Earlier on July 31, 2012, the bourses were forced to suspend trading because of a CDBL glitch.
Based on the investigation in November last year, the BSEC asked the CDBL to take a number of initiatives including appointment of CTO and COO within a short time to ensure smooth settlement of share transactions.
The commission also recommended opening a separate department under the direct supervision of CTO for designing, building and monitoring security systems and security controls, to ensure the confidentiality, integrity, availability and reliability of information systems at the CDBL.
The BSEC investigation report also included another eight recommendations including enhancement of physical security, data security and maintaining confidentiality of information.
A BSEC official told New Age that despite being a company of national interest the CDBL, which is engaged in safekeeping of securities worth thousands of crores, was reluctant to appoint CTO and COO just to avoid additional expenses.
The organisation is refraining from appointing the officials due to temptation to make higher profit, he said.
Asked, CDBL managing director and chief executive officer MH Samad said, ‘The issue is not a public matter.’ He denied making any further comment.
The BSEC in March this year asked the CDBL to ensure cyber security of the entity against the backdrop of cyber theft of $101 million from Bangladesh Bank reserve with New York Federal Reserve Bank.
In May, the commission formed a body to monitor the function of CDBL.

News Courtesy: www.newagebd.net