Experts stress for introducing of commodity exch
Under, over invoicing
06 December 2022
Staff Reporter :
Commodity exchange once introduced in the country would eliminate the scope for under invoicing and over invoicing, experts said.
"Work is going on to introduce commodity exchange in the country. If commodity exchange is introduced, then it will be possible to see both the international market and the scenario in the local market while staying inside the country," said Bangladesh Securities and Exchange Commission
(BSEC) Chairman Prof Shibli Rubayat Ul Islam.
He was speaking at a seminar on "The problems and potentials of capital market in Bangladesh" organized by the Economic Reporters Forum (ERF) at the ERF auditorium in the capital on Monday.
Terming generating employments as one of the major problems of the country, he said, "We are working hard to accommodate suitable workforce in the better jobs with higher salaries. But, all of a sudden, the war started and thus put an impact on the global economy."
"The supply of the world's 2nd largest gas and fuel oil producing country has halted due to the war. The country which supplies the basic foods to other countries was also engaged in war. Subsequently, the impact started to put on other European countries," the BSEC chairman said.
"As a result of the shock following the start of the Russia-Ukraine war, an unusual situation was created in the country as Bangladesh had to suffer from load shedding although there was surplus electricity. Although the country had been self reliant on food, but its people have been asked to remain prepared for facing future situation," he added.
Turning to the capital market situation, Shibli said that Bangladesh did not receive such shock which it was supposed to experience owing to the global condition.
Although the institutional investors occupy around 80 to 90 percent of the capital market across the globe, the situation is totally reversed in the country as around 80 percent investors in the capital market here are small investors, he said.
"We need to take necessary measures to give protection to the small investors. That's why we've taken a temporary measure through floor price. But, it's not a permanent measure," he added.
"With commodity exchange, we'll be able to see the international market and the local market while saying at home for which there will be no scope for under invoicing and over invoicing," he noted.
Highlighting the various challenges of the capital market, DSE Chairman Eunusur Rahman said that the number of knowledgeable investors in the country is very small.
"We often make investment after taking advice from others. This is a big challenge for us. Besides, the number of institutional investors and skilled workforce is also less here in Bangladesh," he added.
CSE Chairman Asif Ibrahim said that there is no commodity exchange in Bangladesh considering the overall size of the economy.
"We will ink an agreement very soon with the Indian multi commodity exchange. We've already sent the draft rules to BSEC in this regard. If we get approval, then hopefully we'll be able to launch here commodity exchange," he added.
ERF President Sharmeen Rinvy presided over the seminar while its General Secretary SM Rashedul Islam, former president Sultan Mahmud and general secretary Ziaur Rahman, among others, spoke, on the occasion.
