SEC to consider launching of derivatives
Friday, 29 June 2007
FE Report
Chairman of Securities and Exchange Commission (SEC) Faruq Ahmad Siddiqi Monday said diversified products in the capital market is needed urgently and derivatives can fulfil the need.
He said SEC will seriously consider launching derivatives. He expressed the hope that SEC would check the legal provisions and come up with the required legal framework for such products.
The SEC chairman was speaking at the closing ceremony of a 4-day training and certification programme on derivatives in the city.
The training programme was jointly organised by Chittagong Stock Exchange (CSE) and National Stock Exchange of India Ltd (NSE).
CSE President MKM Mohiuddin said the country needs financial derivative products to manage risks in the capital market as such products would give different investment opportunities and help increase the confidence of the investors.
The CSE chief said the bourse will hold follow-up sessions in the coming days in Chittagong, Sylhet and other places so that there is a better understanding of these products by all the market participants.
Arup Mukherjee, assistant vice president of NSE India, in his speech said derivatives are the must products for risk management while investing in the stock market, and when there is any derivative on a stock, it increases the liquidity of that stock in the cash market resulting in the overall liquidity in the market.
He also said without derivatives, no capital market is complete and speculation is mingled in the cash market. He also shared NSE's experiences and the benefits it obtained by introducing derivatives in India.
A. B. Siddique, chief executive officer of CSE, offered vote of thanks.
SEC members Saleh Ahmed Chowdhury, Mohammad Ali Khan and Mansur Alam, DSE Senior Vice President Ahmad Rashid Lali, DSE Vice President Sharif Ataur Rahman, directors of CSE and capital market professionals were also present on the occasion.
Chairman of Securities and Exchange Commission (SEC) Faruq Ahmad Siddiqi Monday said diversified products in the capital market is needed urgently and derivatives can fulfil the need.
He said SEC will seriously consider launching derivatives. He expressed the hope that SEC would check the legal provisions and come up with the required legal framework for such products.
The SEC chairman was speaking at the closing ceremony of a 4-day training and certification programme on derivatives in the city.
The training programme was jointly organised by Chittagong Stock Exchange (CSE) and National Stock Exchange of India Ltd (NSE).
CSE President MKM Mohiuddin said the country needs financial derivative products to manage risks in the capital market as such products would give different investment opportunities and help increase the confidence of the investors.
The CSE chief said the bourse will hold follow-up sessions in the coming days in Chittagong, Sylhet and other places so that there is a better understanding of these products by all the market participants.
Arup Mukherjee, assistant vice president of NSE India, in his speech said derivatives are the must products for risk management while investing in the stock market, and when there is any derivative on a stock, it increases the liquidity of that stock in the cash market resulting in the overall liquidity in the market.
He also said without derivatives, no capital market is complete and speculation is mingled in the cash market. He also shared NSE's experiences and the benefits it obtained by introducing derivatives in India.
A. B. Siddique, chief executive officer of CSE, offered vote of thanks.
SEC members Saleh Ahmed Chowdhury, Mohammad Ali Khan and Mansur Alam, DSE Senior Vice President Ahmad Rashid Lali, DSE Vice President Sharif Ataur Rahman, directors of CSE and capital market professionals were also present on the occasion.