• Monday, Jan 17, 2022
  • Last Update : 03:32 am

BSEC extends mutual funds by 10 years

  • Published at 10:30 pm September 16th, 2018
web-BSEC
Bangladesh Securities and Exchange Commission (BSEC) building in Agargaon Dhaka Syed Zakir Hossain/Dhaka Tribune

The commission said, 10 mutual funds were converted to open-end mutual funds and four winded up under a notification, issued in January 24, 2010

The Bangladesh Securities and Exchange Commission (BSEC) has extended the closed-end mutual funds by 10 years.

The commission extended the tenure of 30 mutual funds which are scheduled to be wound up or be made open-end funds by 2023  on the advice from the ministry.

The decision was taken at a BSEC meeting presided over by its Chairman M Khairul Hossain on Sunday.

On June 18, a letter signed by Finance Minister AMA Muhith was sent to BSEC asking the commission to take necessary measures to extend the time limit of mutual funds, which played a vital role in stabilizing the capital market after the 2011 market crash.  

In reply BSEC stated a number of issues with regard to executing the proposal.

The note also said that the winding up of closed-end mutual funds could affect the small-scale investors as they might not get fair value after closing of the mutual funds.

The commission said, 10 mutual funds were converted to open-end mutual funds and four winded up under a notification, issued in January 24, 2010, that limits the tenure of closed-end mutual funds to 10 years and Grameen One: Scheme Two was abolished by order of the appellate division of the Supreme Court.

On August 6, former senior secretary of finance ministry, Md Eunusur Rahman said: A secret report has come in hand from a special organization on May 31, on how to overcome the latest situation going on in the Capital markets.”

In such case, the finance, law ministries, and responsible parties, should play a positive role. If necessary, the policy must be changed by issuing a statement.

According to the note from the BSEC chairman, from 2018-2028, 36 existing closed-end mutual funds valued at TK5302.38 crores, should be dissolved. The note also mentioned that increasing the duration is against the terms of the trust document.

59
Facebook 59
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail