The Bangladesh Securities and Exchange Commission (BSEC), in its 956th commission meeting held on Tuesday (May 27), approved the Chittagong Stock Exchange’s (CSE) proposal to launch commodity market operations. With this approval, the country’s capital market is set to enter the era of derivative product trading—marking a new milestone in market development.
As per a press release signed by BSEC Director and Spokesperson Abul Kalam Azad, the commission has approved the “Chittagong Stock Exchange (Commodity Derivatives) Regulations 2025,” paving the way for CSE to introduce commodity trading in Bangladesh’s stock market. BSEC believes this initiative will significantly enhance market diversification and open up new investment avenues.
Additional key decisions from the commission meeting include:
- Interest Earnings from CCA: 25% of the interest earned from Consolidated Customer Accounts (CCA) must be deposited into the Investor Protection Fund of the stock exchange, while the remaining portion can be used by brokers.
- BO Account Fee Reduction: A policy decision was made to reduce the annual maintenance fee for Beneficiary Owners (BO) accounts from BDT 450 to BDT 150, with legal procedures to follow.
- Berger Paints Rights Issue: The commission approved Berger Paints Bangladesh Ltd to raise over BDT 3.02 billion by issuing 2,728,111 right shares at BDT 1,110 per share (1:1 ratio). The proceeds will be used to establish a third factory in the National Special Economic Zone and cover issuance expenses.
- GPH Ispat Rights Issue Rejected: Due to unsatisfactory documentation, GPH Ispat’s proposal to raise approximately BDT 2.42 billion by issuing right shares was rejected.
- Corporate Governance Enforcement: Z-category companies and those with less than 30% sponsor-director shareholding must appoint independent directors in compliance with the Corporate Governance Code 2018.
- Regulatory Reforms: Legal proceedings will begin to implement the final recommendations of the Capital Market Reform Taskforce regarding amendments to the Mutual Fund Regulations and Public Issue Rules. These reforms aim to improve transparency, accountability, and investor confidence.
BSEC expects that these measures will strengthen the integrity, sustainability, and appeal of Bangladesh’s capital market, encouraging sound companies to get listed and helping the mutual fund sector thrive.
