• S. Korea orders probe after 10 students killed by roof collapse
  • Dozens arrested as Thai police raid protest site
  • Old Dhaka flat looted blasting bombs
  • 'Halal holidays' for Muslims in Malaysia
  • Court accepts murder charges against 7 NSU students
  • Retailers launch Bangladesh factory inspection
  • RAB arrested one in Tangail on 'Al-Qaeda link'
  • HC summons IO of Sagar-Runi murder case
  • UZ polls: Chairman candidate’s camp office torched in Satkhira
  • India commutes death sentence for Rajiv Gandhi killers
  • Indian police kill seven Maoist rebels
  • EU, US reps meet ahead of free-trade talks
  • Mobile court awards 2 BNP men jail for distributing leaflets in Khagrachhari
  • Ties with Muslim countries to get utmost importance: PM
  • Father killed by Quasem’s Al-Badr men: Witness
  • Newspaper sector declared an industry
  • BNP writes it allegation to EC
  • SC clears ways for ex-army chief’s trial in defamation case
  • Bangladeshi TV boss jailed over crash-for-cash scam
  • BCL leader murdered in Narsingdi
  • Voting in 97 upazilas Wednesday in first phase
HOME  BUSINESS
  
Print Friendly and PDF

BSEC now eyes commodity exchange launch

Staff Correspondent

A file photo shows Bangladesh Securities and Exchange Commission building in Dhaka. The BSEC 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. — New Age photo A file photo shows Bangladesh Securities and Exchange Commission building in Dhaka. The BSEC 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. — New Age photo

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.




Reader’s Comment

comments powered by Disqus
   

Rescheduling spree cuts defaulted bank loans by Tk 16,137cr in Q4

Defaulted loans in the banking sector decreased by 5.01 per cent in 2013 year-on-year as banks’ rescheduling spree in the last quarter of the year on political consideration brought down the defaulted loans by Tk 16,137.09 crore in only three months. Full story

Owners seek time, fund for RMG factory relocation

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

Traders, professionals asked to display TIN certificates

A file photo shows a jewellery shop in Dhaka. The revenue board has asked business houses, shops and professional taxpayers to display their taxpayer identification number certificates at a visible place of business premises. — New Age photo
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

BTRC shuns unlawful service approval practice

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

50m more Bangladeshi kids to use mobile internet in next 10yrs: Telenor

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

Telcos to get access to EC database by March

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

BSEC now eyes commodity exchange launch

A file photo shows Bangladesh Securities and Exchange Commission building in Dhaka. The BSEC 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. — New Age photo
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

Ensuring demutualisation goals, transparency key challenges

Siddiqur Rahman Miah
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 drop for 3rd day

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

RMG factory owners should be sympathetic to workers: Tofail

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 for $6.27b in telecoms sector fees in 2014/15

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

Market Disclosures

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
  • Online Poll


    Do you think that the government has successfully brought back normalcy in public life after the January 5 elections?

    • Yes
    • No
    • No comment
    Ajax Loader