CSE gets conditional licence to launch country's first commodity exchange
Stock and Security Linkway Limited, a concern of strategic investor ABG Limited of Bashundhara Group, owns 0.51% of CSE shares. These shares must be transferred to an entity unaffiliated with ABG Ltd.
The Bangladesh Securities and Exchange Commission (BSEC) conditionally awarded the country's first commodity exchange licence to the Chittagong Stock Exchange (CSE) on Wednesday (20 March).
The condition is that strategic investors must divest their ownership of brokerage firms within three months of receiving the licence.
Commodity exchange regulations prohibit strategic investors from owning shares in any brokerage firm that holds ownership in the CSE.
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According to a BSEC official, Stock and Security Linkway Limited, a concern of strategic investor ABG Limited of Bashundhara Group, owns 0.51% of CSE shares. These shares must be transferred to an entity unaffiliated with ABG Ltd.
Addressing a programme in this regard, Asif Ibrahim, chairman of CSE, said, "Within this year, we can formally inaugurate the first commodity exchange in Bangladesh. The procurement of hardware and software is nearing completion, facilitating this endeavour."
He mentioned that Multi Commodity Exchange of India has been appointed as a technical adviser because it possesses knowledge in the field.
"In our country, we do not have a commodity exchange, unlike India, Pakistan, and Nepal, where such exchanges exist. We frequently observe how middlemen manipulate commodity prices through syndicates. With the establishment of a commodity exchange, such syndicates will no longer exist."
The port city of Chattogram will also be enriched by the commodity exchange, he further added.
State Minister for Commerce Ahsanul Islam Titu was chief guest and Central Depository Bangladesh Ltd Chairman Sheikh Kabir Hossain was a special guest at the programme chaired by BSEC Chairman Shibli Rubaiyat Ul Islam.
Ahsanul Islam Titu hoped that once the commodity exchange is established, everyone will have a clear understanding of commodity prices in both international and domestic markets.
"Then, no one will be able to manipulate prices to engage in import-export activities at lower or higher prices. As a result, money laundering and revenue loss will be halted," said the state minister.
