The port city bourse CSE has yet to launch operation of the country's maiden commodity exchange (CX), as regulatory approval for licences of commodity brokers and products has been remaining pending for around one year due to shareholding complications involving its strategic partner.
On installation of basic infrastructure needed for operations of the CX, the Chittagong Stock Exchange (CSE) sought approval for commodity items from the Bangladesh Securities and Exchange Commission (BSEC) in July last year.
The commodities selected by the port city bourse are gold, silver and crude oil.
The CSE also submitted seven applications to the securities regulator in October, 2025 seeking licences for commodity brokers.
But the port city bourse has not yet received any regulatory approvals for brokers as well as commodities.
When asked, CSE Managing Director M. Shaifur Rahman Mazumdar said the previous commission had refrained from issuing any licence and approving the commodities until the complications over the strategic partner's stake were resolved.
As per rules set for the CX, the exchange's strategic partner is not allowed to hold more than 25 per cent shares of the exchange.
ABG Ltd., a company of Bashundhara Group, became the CSE's strategic partner by purchasing the 25 per cent stake of the exchange.
The company also owns a brokerage firm, Stock & Brokerage Linkway, with a 0.51 per cent stake in the port city bourse.
As a result, the shareholding of the CSE's strategic partner -- ABG Ltd. -- has exceeded the stipulated ownership ceiling.
After resignation of immediate past BSEC chairman and commissioners, the new commission led by its Chairman Masud Khan took the charge in early June last.
The CSE managing director said they talked about the pending issue of broker licence and commodity items with the BSEC officials.
Asked, a BSEC official said on anonymity that the regulator realised the importance of the CX.
He said the regulator would analyse the complications to find out a solution required to commence operation of the CX.
To break the deadlock, Bashundhara Group will have to surrender the ownership of the brokerage firm to another party.
Mr Rahman said the conglomerate was ready to transfer the additional shares, but the National Board of Revenue (NBR) stopped the transfer of its assets.
"That's why the whole matter of the commodity exchange is hanging in the balance."
After the fall of the Awami League-led regime, the NBR in October 2024 requested the Department of Joint Stock Companies and Firms to suspend share transfer by seven groups, including Bashundhara, to prevent tax evasion. Since then, Bashundhara's share transfer has remained suspended.
The CSE managing director said the regulator had ways to resolve the complications involving the strategic partner's shareholding.
The regulator could either offer a waiver on mandatory shareholding by the strategic partner or could issue licences for the brokers alongside approving the commodities with a condition of resolving the shareholding complexity before commencing operation at the CX.
"Then the commodity brokers could complete necessary preparations before resolving the shareholding complications," Shaifur said.
The companies that applied for broker licences are LankaBangla Securities, BR Rich, Sohel Securities, Island Securities, Royal Capital, UCB Stock Brokerage, and NLI Securities.
They are operating on both Dhaka and Chittagong stock exchanges.
Similar to TREC (Trading Right Entitlement Certificate) holders of the bourses, a company will require a broker licence from the securities regulator to conduct trading at the CX.
As per rules, the minimum paid-up capital of a commodity broker will be Tk 100 million.
Apart from brokerage firms, other companies can also become commodity brokers by fulfilling the requirements.
A CX is a legal entity that determines and enforces rules and procedures for trading in standardised commodity contracts and related investment products.
