IN RESPONSE TO THE DEMAND OF CSE PRESIDENT TO CONSIDER FINANCIAL DERIVATIVES IN OUR CAPITAL MARKET AND TO PREPARE A LEGAL FRAMEWORK, SEC CHAIRMAN ADDRESSED THE NEED AND ASSURED SEC’S INITIATIVE

Dhaka, June 25, 2007: CSE President Mr. MKM Mohiuddin has urged the regulatory authority to consider introducing financial derivatives products as the present situation warrants such products, in his speech in the closing ceremony of a 4-day long training and certification program on derivatives this evening at BRAC INN, Dhaka. The training program was jointly organized by Chittagong Stock Exchange and the National Stock Exchange of India Ltd. (NSE, India). SEC Chairman Mr Faruq Ahmad Siddiqi was the chief guest in the program.

In his speech, he told we need financial derivative products to manage risks in the capital market; as such products would give different investment opportunities and surely increase the confidence of the investors. In his speech he also hoped that this training had helped a lot to understand the products by the participant, as was the feedback uttered by the participants during their feedback session in the same occasion, and assures that we are getting ready for this product and should make no delay. He also assured that CSE would do follow-up sessions in the coming days in Chittagong, Sylhet and other places so that there is a better understanding about these products by all the market participants, and the market gets ready for it when we would introduce such products.

Mr. 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 that 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 introducing derivatives in India.

Mr. MKM Mohiuddin, President of CSE was speaking in the occassion while from his left SEC Chairman Mr. Faruq Ahmad Siddiqi, Mr. AB Siddique, CEO of CSE and from his right Mr. Arup Mukherjee Asst. VP of NSE India are seen in the picture.

Mr Faruq Ahmad Siddiqi, Chairman, SEC, thanked CSE for conducting this training session. In his speech he told that we need diversified products in the capital market and derivatives can fulfill the need. He also assured that SEC will consider derivatives seriously and hoped that SEC would check the legal provisions and would come up with the required regulations for such products.

Mr. A. B. Siddique, Chief Executive Officer of the Exchange, thanked everyone for making this program a success in his vote of thanks. SEC members, Mr. Saleh Ahmed Chowdhury, Mr. Mohammad Ali Khan, Mr. Mansur Alam, DSE Vice Presidents Mr Ahmad Rashid Lali, Mr. Sharif Ataur Rahman, directors of CSE and many others from the organizations operating in the capital market were also present in the occasion.