The capital market regulator has recently asked two firms to scrap ‘exchange’ from the respective company’s name as the securities rules did not allow any organisation to use the word without getting permission from the Bangladesh Securities and Exchange Commission.
The Bangladesh Jute and Commodity Exchange Limited and Popular Jute Exchange Limited, two private companies, which has recently announced that they would start project without getting permission from the BSEC.
The BSEC took the move as the BJCE on November 3 and PJEL on November 25 announced that their business using the names.
The BSEC on November 17 asked the BJCE to scrap ‘commodity exchange’ from its name. But, the firm on November 18 proposed Bangladesh Jute Exchange Limited as its name.
While, Popular Jute Exchange Limited on November 25 announced that it would start its business under the name.
The BSEC in two separate letters issued to the companies, said that there was no scope of using ‘exchange’ with any company’s name without getting permission from the BSEC.
So the names have to be changed, the BSEC letter said.
‘The organisations are trying to start commodity exchange service. But, still we [BSEC] and any other firm have no preparation in this regard,’ a senior BSEC official told New Age.
As per the amended Securities and Exchange Act, the commission preserves the right to allow any organisation to conduct commodity exchange service. But, the commission has to formulate rules in this respect to allow any company for this purpose, he said.
The commission will start formulating rules in this regard by the next year, he added.
BJCE chief investment officer Rahman Habib earlier told New Age that his company would start its business soon.
‘The BJCE will conduct a pilot project. We have already got the approval from the jute ministry in this regard,’ Habib said.
Following a BSEC show-cause notice the BJCE earlier said that the jute ministry allowed the BJCE to conduct the pilot project at five purchase centres under the Bangladesh Jute Mills Corporation — one each in Madaripur, Pabna and Kurigram and two in Rajbari.
‘We did not start our function as per the Securities and Exchange Commission Act-1993 or Exchange Demutualisation Act-2013 and if its name conflicts with the BSEC’s rules, then the organisation is willing to change its name as per the regulator’s desire,’ , the BJCE said in its reply.
-With New Age input
