The market regulator has refused to provide permission to Bashundhara Group, one of the largest conglomerates in Bangladesh, to launch a private commodity exchange.
ABG Limited, a newly established business within the group, applied to the Bangladesh Securities and Exchange Commission (BSEC) in May of this year to request authorization to establish ABG Commodity Exchange (ABGEX).
The BSEC decided not to permit the conglomerate to proceed with its strategy in the middle of September. The port city bourse received approval from BSEC to set up and run the nation’s first commodity exchange in October of last year.
A further agreement to construct an automated and structured commodity market in Bangladesh was struck by the CSE and Multi Commodity Exchange (MCX). The CSE is working to introduce a variety of products on the platform.
A commodity exchange is a regulated market where buyers and sellers meet to buy and sell legally binding contracts that promise to deliver a specific good, like wheat, gold, or cotton, or a financial asset, like foreign currencies, at a specific future time.
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