The two companies have started trading in gold without registering in the name of ‘Commodities Exchange’. The business was started by two companies, Reliable Commodity Exchange Company and Burak Commodity Exchange Company. The company has sought an explanation for starting trading in such products without the permission of the Bangladesh Securities and Exchange Commission (BSEC), the regulator of commodity exchanges, including the two stock exchanges. The two companies have recently received a letter seeking clarification on starting a commodity exchange-related business.

It is learned that Rashek Rahman is one of the partners of this company, against whom there are various allegations. The two institutions were inaugurated last month. Apart from Dhaka, offices were set up in Rangpur and Comilla. The office of Burak Commodity Exchange Company has been taken at Munsipara in Rangpur. The area has made announcements of various profits through the sale of commodities or products. Cricket star Shakib Al Hasan is also involved with the company. The BSEC regulates commodity exchanges in accordance with Bangladeshi law. Such an institution can be set up only with the permission of BSEC. However, many questions have arisen as they did not start their activities. Recently, a letter has been sent to the managing directors of Reliable Commodity Exchange Company and Burak Commodity Exchange Company. The matter has also been brought to the notice of the Governor of Bangladesh Bank, Senior Secretary, Department of Financial Institutions, Ministry of Finance and Secretary, Ministry of Commerce.

The letter from BSEC said, “Under Section 7 (4) of the Securities and Exchange Ordinance, 1989, no one other than a member shall act as a broker or dealer for any securities not listed on the stock exchange.” As a result, in this situation, the Commission would like to know your position on proposing to trade through Commodity Future Contract without the approval of the Commission or without being a member of the Stock Exchange. An explanation was requested within seven working days of the issuance of the letter.

The letter further states that in accordance with Section 2 (CCC) of the Securities and Exchange Ordinance, 1989, relating to Commodity Future Contracts, the Commodity Exchange is duly registered with the Cash or Offset Commission. Commodity products include agriculture, livestock, fisheries, forestry, minerals or energy, and products made or processed from such products. Apart from this, any product / commodity may be informed by the Commission through official gazette. And under Section 2 (1) (3) of the Securities and Exchange Ordinance, 1989, commodity futures contracts are defined as securities.

Shakib Al Hasan inaugurated his gold business showroom in Banani on April 22. He has joined the gold business jointly with Curious Lifestyle. It was informed in the press conference organized on this occasion that Shakib’s organization has taken the initiative so that everyone can buy gold if they want. For that, there is an opportunity to buy 1 to 100 grams of gold in ‘Swiss Made 24K Minted Gold Bars’. Shakib’s Burak Commodity Exchange Company was approved as a dealer by Bangladesh Bank on 26 November 2019. The company has already started commercial activities by importing gold bars and jewelery from abroad with three offices in Dhaka, Rangpur and Comilla.

When asked, BSEC Commissioner Sheikh Shamsuddin Ahmed said, “We want to know what they are doing as there are commodity exchanges with the names of Reliable Commodity Exchange Company registered in Dhaka and Burak Commodity Exchange Company registered in Rangpur. If a company is involved in ‘futures contracts’, they must get permission from BSEC. The BSEC has the sole power to approve Reliable and Burak futures contracts. No one else has the power to issue this license. ”

Basically, BSEC is the regulator of commodity exchanges. But the two companies started business without permission from BSEC. The BSEC has recently sent a letter to the managing directors (MDs) of two companies, Reliable Commodity Exchange Company and Burak Commodity Exchange Company. BSEC Assistant Director. The letter, signed by Mosabbir Al Ashiq, states that under the Securities and Exchange Ordinance, 1989, two companies owned by Shakib cannot be involved in the gold business.

According to sources, Shakib’s Burak Commodity Exchange Company has received approval from Bangladesh Bank to legally import and sell gold bars and jewelery. However, the two companies did not seek permission from the BSEC to trade in gold, the source said.

Former chairman of Bangladesh Securities and Exchange Commission (BSEC) Faruk Ahmed Siddiqui said, “It would be illegal for anyone to start a commodity exchange without the permission of BSEC. If anyone has done that then BSEC has done it right. ‘

When asked, Rashek Rahman, a partner of Reliable Commodities Exchange Company Limited, said, “BSEC’s allegations are not understandable. I am trading gold in accordance with the laws of Bangladesh. If the complaint is understandable, I can reply to the letter of BSEC or not. ‘ He claimed that although the word “commodity exchange” was associated with the names of the two companies, they were not involved in any such business.

After restaurants, hotels, capital markets, cosmetics, shrimp farms, travel agencies, event management and e-commerce, Shakib has now started a gold business. Apart from this, Bangladesh Bank did not approve the application of an entrepreneurial director of a private bank.

Source: Bangladesh Daily