Former Chittagong Stock Exchange (CSE) chairman Mirza Salman Ispahani has called for transparency, digital surveillance and professional management to restore investor confidence, as the CSE moves towards launching a commodity exchange with gold, silver and crude palm oil futures.
Ispahani, also chairman of Ispahani Group, said stronger action against market manipulation and greater investor awareness were essential for reviving the capital market.
“Those who artificially push up the price of a Tk10 share to Tk40 and then dump it on ordinary investors can be identified through digital surveillance,” he said, stressing the need to bring manipulators to justice.
He advised investors to avoid excessive risks through margin loans and high leverage, and to make decisions based on adequate knowledge and financial capacity.
Ispahani made the remarks as chief guest at a CSE awareness and knowledge-sharing programme for journalists in Chittagong on Tuesday.
Commodity exchange plan
CSE Managing Director M Saifur Rahman Majumder presented a paper outlining the proposed commodity exchange, which would bridge the gap between the physical commodity market and the financial market.
Futures trading would begin with gold, silver and crude palm oil- the commodities with internationally recognised reference prices. Cotton, rice and wheat would be added later, Saifur Rahman said.
The exchange would allow businesses to hedge against adverse price movements, making future costs and revenues more predictable. Importers could use futures to manage rising commodity prices, while producers could hedge against falling prices.
Saifur Rahman said preparations for the commodity exchange had progressed significantly, with the exchange targeting a launch within three to four months after final approval from the Bangladesh Securities and Exchange Commission.
CSE Director Major (retd) Emdadul Islam said the commodity exchange would serve as an important catalyst for Bangladesh’s economy. “The commodity exchange is the right solution” to transform the country’s commodity market into a well-structured and efficient market, he said.
Speakers at the event said developing the capital and commodity markets would reduce excessive dependence on bank-based financing.
