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Dhaka     Wednesday   06 July 2022

Shakib’s gold business sans permission, BSEC seeks clarification

News Desk || risingbd.com

Published: 13:09, 22 May 2022  
Shakib’s gold business sans permission, BSEC seeks clarification

Cricket all-rounder Shakib Al Hasan has launched gold business alongside playing cricket.

He launched gold business through two companies named ‘Reliable Commodity Exchange Company’ and ‘Burak Commodities Exchange Co.’

Meanwhile, an allegation has been raised against Shakib that he started the gold business without prior permission of the Bangladesh Securities and Exchange Commission (BSEC). Therefore, the BSEC has sought clarification from two companies of Shakib for launching gold business flouting law.

Recently, the BSEC sent letters to Managing Directors of two companies seeking clarification as to why they started gold business without permission.

Besides, Governor of the Bangladesh Bank, Senior Secretary of the Financial Institutions Division of Finance Ministry and Secretary of Commerce Ministry of have been informed of the violation.

Quoting section 8 (4) of Securities and Exchange Ordinance 1969, the BSEC said a person or company not member 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.

In the letter, the two companies of Shakib have been requested to send reply within seven working days of issuance of the letter.

“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 this year, Shakib inaugurated gold showroom at Banani in the capital Dhaka. He entered into a deal with Curious Life Style for launching 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.

Gold business is the new addition of Shakib after his restaurant, hotel, share market, cosmetics, shrimp, travel agency, event management and ecommerce businesses. Besides, he has also tried to make an investment in the banking sector although the Bangladesh Bank declined to give an approval to this end.