BSEC orders to fix names of firms owned by Shakib

Bangladesh Securities and Exchange Commission (BSEC) has instructed two companies owned by cricketer Shakib Al Hasan to exclude the word ‘commodity exchange’ from his two companies as the word created confusion.

The companies are Reliable Commodities Exchange Company and Buraq Commodities Exchange Company.

“Exclude the word ‘commodities exchange’ from the company names as it created confusion and went against the nature of business of the companies,” the BSEC wrote to the two companies on Wednesday.

Only commodities exchange businesses can conduct such operations, but no company in Bangladesh is allowed to run commodities exchange business.

Gold futures are agreements to buy and sell quantities of gold on a particular date in the future at a fixed price.

“The BSEC is the lone regulator to approve the futures contracts,” said a BSEC official.

On May 16, BSEC wrote to the two companies asking for clarification about the names. “…at this stage, you are requested to explain your position about offering business through commodity futures contracts without approval of the commission or without being a member of such a stock exchange (which is yet to start or get approval by the commission) within 7 working days,” said the letter.

A person or a company not a member of the stock exchange will be barred from entering commodity futures contracts and launching a business as per securities rules, it said.

“No person other than a member will act as a broker or a [jobber or dealer] for any security not listed on the Stock Exchange,” the letter reads.

In response on May 22, the companies said, “We are operating a jewelry business after receiving permission from the Bangladesh Bank.”

On April 22, Shakib inaugurated a gold showroom at Banani in Dhaka. He entered into a deal with QRiUS Lifestyle to launch the venture.