Staff Reporter :
The Bangladesh Securities and Exchange Commission (BSEC) has accused two private sector companies, Reliable and Burak Commodity Exchange Company Limited, of violating the gold trading law.
On May 16, the BSEC sent letters to Managing Directors of two companies seeking clarification as to how they did start gold business without permission.
Appreciating the decision of BSEC chairman Prof Shibli Rubaiyat, the country’s economists and anti-corruption activists said that the BSEC chairman had taken a timely decision. His decision saved the common people of the country from being harmed. They also demanded legal action against the two companies soon.
Bangladesh cricket team all-rounder Shakib
Al Hasan is involved with the ownership of these two companies accused of fraud and deception.
Khurshid Alam Khan, chief lawyer of the Anti-Corruption Commission, said the misconduct of the two companies should be stopped immediately. Otherwise they will cheat the common people and disappear, he added.
“Anyone who cheats, his trade should be shut down quickly,” he said.
An allegation has been raised against Shakib that he entered the gold business without prior permission of the Bangladesh Securities and Exchange Commission (BSEC) and meeting the requirements.
Besides, Securities and Exchange Commission informed Governor of the Bangladesh Bank, Senior Secretary of the ERD and Secretary of Commerce Ministry of the violation.
Quoting section 8 (4) of Securities and Exchange Ordinance 1969, the BSEC said a person or company having no membership of the stock exchange will be barred from entering commodity future contract and launching business.
“No person other than a member shall act as a broker or a [jobber or dealer] for any security not listed in the Stock Exchange,” the letter reads.
The BSEC reminded the yardstick of the “Commodity Futures Contract” saying it refers to agricultural, livestock, fishery, forestry, mining or energy goods, and product that is manufactured or processed from any such goods.
Shakib’s companies have no capacity to deal with gold as Commodity Future Contract well defined as Security as per Section 2 (1) (iii) of the Securities and Exchange Ordinance, 1969 has drawn a boundary.
The regulator of the country’s capital market on May 16 issued letter requiring reply from the Shakib’s companies within seven working days.
“At this stage, you are requested to explain your position with regard to offering business through commodity future nature contract without approval of the Commission or without being a member of such Stock Exchange (which is yet to start or got approval by the Commission) within 7 (seven) working days of issuance of this letter,” says BSEC letter signed by Md Mosavvir Al Ashick, Assistant Director (SRMIC).
On April 22, Shakib inaugurated gold showroom at Banani in the capital Dhaka. He entered into a deal with Curious Life Style for running the gold business.
Burak Commodities Exchange Co reportedly got approval as a dealer from the Bangladesh Bank on November 28, 2019. The company already started importing gold bars and ornaments marketing those through its Dhaka, Rangpur and Cumilla offices.
Illegal gold business is the new addition of Shakib after his restaurant, hotel, share market, cosmetics, shrimp, travel agency, event management and ecommerce businesses.
