BSEC is unaware of the jute ministry let-go: officials
A private company Bangladesh Jute and Commodity Exchange Limited has initiated a pilot project to run commodity exchange. BJCE chief investment officer Rahman Habib told New Age that the exchange would start its business soon. ‘The exchange will conduct the pilot project. We have already got approval from the jute ministry in this regard,’ Habib said.He said farmers from five districts of the country would be able to sell jute through their agents while Bangladesh Jute Mills Corporation would buy the products from Dhaka online.
Initially the exchange will allow trading only jute online not any other products, he said.
‘We have a plan to start a full-fledged commodity exchange after evaluating success of the pilot project and getting approval
from proper authority,’ he said.
Another BJCE official said that they had tried to get approval from the Bangladesh Securities and Exchange Commission several times, but the regulator replied that it was not yet prepared for approving a commodity exchange.
A senior BSEC official, however, said that they did not know about the jute ministry’s approval to the BJCE.
The BSEC is the authority to give permission to an entity for conducting commodity stock exchange business, he said.
‘We have received one application seeking permission to establish commodity exchange, but it [the application] is yet to settled as the commission have no rules and regulations in this regard.’ he said.
In the circumstances, the question that who will regulate Bangladesh Jute and Commodity Exchange remains unsettled as the entity got approval from the jute ministry.
BJCE officials claimed that they did not require approval from the BSEC as the exchange would not go to facilitate any transaction of securities and derivatives.
-With New Age input
