The Securities and Exchange Commission (SEC) has advised the newly appointed chairman of the Dhaka Stock Exchange (DSE) to appoint a systems auditor to assess the performance of its controversial surveillance software.

In a separate note, the surveillance department of the SEC asked the bourse not to depend on the faulty software, which gives misleading information. "You are advised to immediately install a genuine, dependable software for surveillance purposes," according to the SEC letter to the DSE.

DSE sources said the proposals are likely to be placed before the newly formed Council of the DSE for a decision. The council may opt for a

joint inquiry committee to dig into the matter, a top DSE source said.

The surveillance software of the country's premier bourse has been found to be faulty, which had been generating misleading of information over the years.

The SEC on Tuesday served a show cause notice on the DSE CEO to respond within three days as to why actions would not be taken against him under Securities and Exchange Ordinance 1969, for not informing SEC despite being aware of the faulty surveillance software.