The Bangladesh Securities and Exchange Commission (BSEC) has conditionally granted the country’s first commodity exchange license to the Chittagong Stock Exchange (CSE) on Wednesday, March 20th. The condition stipulates that strategic investors must divest their ownership of brokerage firms within three months of receiving the license.
Commodity exchange regulations prohibit strategic investors from holding shares in any brokerage firm that has ownership in the CSE. 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, which must be transferred to an entity unaffiliated with ABG Ltd.
Speaking at a program regarding this development, Asif Ibrahim, chairman of CSE, stated, “We anticipate formally inaugurating Bangladesh’s first commodity exchange within this year. The procurement of hardware and software is nearing completion, facilitating this endeavor.” He noted that Multi Commodity Exchange of India has been appointed as a technical adviser due to its expertise in the field.
Ibrahim highlighted the significance of establishing a commodity exchange in Bangladesh, noting the absence of such exchanges unlike in neighboring countries like India, Pakistan, and Nepal. He emphasized that the exchange would eliminate syndicates manipulating commodity prices, particularly benefiting the port city of Chattogram.
State Minister for Commerce Ahsanul Islam Titu, serving as the chief guest, expressed optimism about the establishment of the commodity exchange. He envisioned enhanced transparency in commodity prices in both international and domestic markets, preventing price manipulation and mitigating issues like money laundering and revenue loss. The program was chaired by BSEC Chairman Shibli Rubaiyat Ul Islam, with Sheikh Kabir Hossain, Chairman of Central Depository Bangladesh Ltd, as a special guest.
