Bashundhara Group has filed an application with the Bangladesh Securities and Exchange Commission for establishing a private commodity exchange.
The Group submitted the application on May 19 to the securities regulator.
The Group has opened a separate company named ABG Limited to launch ABG Commodity Exchange (ABGEX) as a private commodity exchange in Bangladesh under the supervision of the BSEC, according to the filings.
A commodity exchange is an organised marketplace where buyers and sellers come together to purchase and sell enforceable contracts to deliver a commodity such as wheat, gold, or cotton or a financial instrument such as foreign currencies at some future date.
‘ABGEX will provide all facilities related to commodity exchange which includes but not limited to providing a platform to sellers and buyers to sell, buy and transfer all kinds of commodities and derivatives available in Bangladesh and abroad,’ the letter reads.
The company will also provide services for enlistment of brokers, and also obtaining or connecting foreign feed for local and foreign investors, opening and maintaining beneficiary owners account for local citizens and foreigners, warehousing, storing, clearing and settling house, and quality checking, it said.
It said that without a prior approval from the relevant authority neither investors nor other stakeholders would be interested to devote their time and money in this venture.
Currently there is no commodity exchange in the country.
On October 28, 2021, the BSEC allowed the Chittagong Stock Exchange to establish a commodity exchange in the country subject to ensuring consumer rights and all necessary infrastructure facilities.
The CSE is working to launch the platform with a number of products.