BSEC now eyes commodity exchange launchStaff Correspondent
Bangladesh Securities and Exchange Commission has planned to introduce commodity exchange and a clearing corporation after the completion of all the process of demutualisation of Dhaka and Chittagong stock exchanges, BSEC officials said.
Commodity exchange is a process for buying and selling commodities for future delivery, while clearing corporation is an organisation associated with an exchange to handle the confirmation, settlement and delivery of transactions, fulfilling the main obligation of ensuring transactions being made in a prompt and efficient manner.
For introducing commodity exchange clearing corporation is mandatory.
Following an amendment to the Securities and Exchange Ordinance, the BSEC was empowered as the sole authority to allow any entity or exchange to introduce commodity exchange service.
The BSEC, however, is yet to allow any organisation to conduct or run commodity exchange service as the regulator is yet to formulate rules and regulations to run the services.
‘Introducing commodity exchange service will be our immediate next target after we complete the demutualisation process successfully as part of our prime agenda to bring transparency in capital market functioning,’ the BSEC official said.
‘Commodity exchange will increase the depth of our capital market as like the other developed markets of the world,’ he said.
But, introducing commodity exchange will require a huge field and paper work as well, the official said.
The pre-study for introducing commodity exchange will include feasibility study, infrastructure requirements and existing infrastructure, rules and regulations of other stock markets, potential investors and investment requirements for the commodity exchange, he said.
The whole process might require at least a year to allow any organisation for such business, the high official said.
If the existing platforms of the bourses are capable to conduct such transactions, they might establish such exchange in association with other potential investors, he said.
Potential investors of the commodity exchange services said investments in infrastructure and warehouse developments for preserving goods would require huge investments.
The BSEC, as part of precondition of getting ‘A’ category membership of International Organisation of Securities Commissions, an association of organisations that regulate the world’s securities and futures markets, included the authority in its ordinance to allow commodity exchange.
Earlier in December last year the BSEC disallowed Bangladesh Jute and Commodity Exchange and Popular Jute Exchange Limited to scrap ‘commodity exchange’ from their names as the regulator was then not prepared to allow them for conducting such services.
While, the Dhaka and Chittagong stock exchanges in August last year signed a memorandum of understanding for setting up a joint clearing corporation for smooth transaction in the stock market and payment for derivative instruments.
comments powered by Disqus
Garment factory owners has sought five years to shift their production units from shared and rented buildings after a platform of European Union retailers asked them to relocate their units soon due to safety concern. At a meeting with the representatives of EU... Full story
The National Board of Revenue has asked business houses, shops and professional taxpayers to display their taxpayer identification number certificates at a visible place of business premises, officials of the revenue board said. They said that the NBR took the initiative to smoothly... Full story
The Bangladesh Telecommunication Regulatory Commission has backtracked from approving any service or tariff of the telecom operators without prior consent of the telecom ministry. According to BTRC officials, since last week... Full story
Telenor Group, the parent company of Grameenphone, has projected that around 50 million Bangladeshi children will access the internet through mobile phone for the first time in the next one decade. A Telenor press release issued... Full story
Cellular phone operators of the country are going to get access to the Election Commission’s database by March next to verify the subscriber’s information before activating new connections, said officials. They said telecom regulator has... Full story
Bangladesh Securities and Exchange Commission has planned to introduce commodity exchange and a clearing corporation after the completion of all the process of demutualisation of Dhaka and Chittagong stock exchanges, BSEC officials said. Full story
Chairman of the first demutualised board of the Dhaka Stock Exchange, former justice Siddiqur Rahman Miah, on Monday said that implementing the objectives of the demutualisation and ensuring transparency and accountability in the... Full story
Dhaka stocks declined for the third trading session on Monday in volatile trading as investors remained uncertain about the market trend after the formation of the bourse’s first demutualised board that includes seven independent directors. Full story
Commerce minister Tofail Ahmed on Monday said garment factory owners should be sympathetic to their workers and should not terminate them on silly grounds, as they make export quality items of the country. ‘The garment factory owners should be... Full story
India aims to raise 389.54 billion rupees in revenue from the telecoms sector, including proceeds from airwave auctions, during the next fiscal year beginning April 1, the government said in its interim budget on Monday. Full story
Ceramics (Bangladesh) SAK Ekramuzzaman, one of the sponsors/directors of the company, has expressed his intention to sell 20,00,000 shares out of his total holding of 1,65,56,350 shares of the company at prevailing market price through Stock... Full story