Post Box No. 742
RSEBL along with FCBL initiated a Commodity Market by introducing the commodity trading platform from June 2016. This is an automated system where farmers have provision to grade, package and store their produce in the FCBL warehouse and obtain a Receipt that is traded online in the commodity trading platform. In the automated system the traders and farmers both have option to bid for the commodity, farmers taking the sale side and traders on the buy side. Price is determined on the highest price offered by the traders.
Commodity Market is an initiative to provide three basic functions: price transparency (everyone has access to a neutral reference price); price discovery (demand and supply developments are readily reflected in price levels); and reduced transaction costs (it is easier to find buyers or supply through a centralized market place). In future the commodity market shall providers forward or futures contracts that shall help the risk transfer function. In addition, commodity market will help to define better quality standards, speed up the process of product standardization, and improve the discipline in the market place. Commodity market will create incentives for market participants to produce commodities that meet the specific specifications, and to behave according to commodity market standards.
As currently formulated, the goals of the commodity market initiative
to commercialize the Bhutanese agricultural sector;
to increase commodity margins for Bhutanese farmers due to direct market access, more buyers, and less collusion, and transparent prices;
to integrate smallholders into the market; and
to reduce transaction cost and ultimately to improve rural life standards.
e-Auction Application is an initiative of Royal Securities Exchange of Bhutan. It is a robust Application with end-to-end management of the auction lifecycle, including creation of auctions complete with details of auction expiry date and minimum bid amounts, auction notices, bidding process and settlement components.
It emulates and automates real life auction complexities on an online platform. It is implemented for the benefit of Financial Institutions, Corporate entities, Government Organization to auction the foreclosed properties online. For buyers all over Bhutan, it shall provide accessibility, preference and a discovered price for properties all over Bhutan.
Capital Market Solution
The objectives of the company are to encourage wider spread of share ownership in the enterprises, mobilize savings, provide platform to raise equity capital for new ventures and to provide liquidity to the existing shareholders.
Developed under the Technical Assistance of the Asian Development Bank, RSEB was incorporated under the Companies Act of the Kingdom of Bhutan, 2000 and is regulated by the Financial Services Act, 2011.
In July 1996, RSEB was delinked from the RMA as an autonomous body.
At present, RSEB operates as a membership organization comprising of four brokerage firms including BNB Securities Ltd, BOB Securities Ltd, RICB Securities Ltd and BDB Securities Ltd. The brokerage firms are the subsidiary companies of four financial institutions.
Over the years, the total number of shareholders increased significantly. As of 31st December 2014, there were over 62,000 shareholders compared to 1,828 shareholders in 1993. The number of listed companies has also grown simultaneously. In 1993, there were four companies listed to trade shares with market capitalization of Nu 493.40 million and as of 31st December 2014, there are 21 companies listed with market capitalization of Nu 22,498.20 million.
On April 23rd 2012, RSEB moved its securities market to a new and enhanced trading system. The RSEB Integrated System replaced the traditional system that was used for 19 years ever since it was launched in 1993.
The new system was established with grants from the World Bank and developed by the InfoTech Pvt Ltd as per the requirement of the exchange.