Shanta Asset Management Limited (SAML) will bring a new Shariah fund named "Shanta Amanah Shariah Fund" to its existing portfolio.
In this regard, a signing ceremony was held at the head office of Investment Corporation of Bangladesh (ICB) in the capital on Monday, according to a statement.
SAML is the sponsor and asset manager of the Shariah fund while ICB will act as the trustee and custodian of the fund.
Mohammad Emran Hasan, chief executive officer (CEO) of SAML and Kazi Sanaul Hoq, managing director of the ICB, signed the deal on behalf of their respective organisations.
According to the statement, the initial target of this fund will be Tk 300 million and the sponsor will provide Tk 30 million.
As an open-end mutual fund, the fund size can be increased over time.
Mr. Hassan said that although Shariah-based banking is popular in the country, Shariah compliant quality capital market products are rare in kind.
As a Muslim country, a large part of investors doesn't participate in the capital market due to lack of quality Shariah-based capital market products, he said.
"We desire to follow the proper and international Shariah-based investment policy for this fund," Mr Hassan said.
Md. Mosaddake-Ul-Alam, DMD, Dipika Bhattacharjee, GM, Trustee Division, Md. Kamal Hossain Gazi, GM, Accounts and Finance, Md. Taleb Hossain, DGM, Trustee Division; MD. Mahbub Alam, AGM, Trustee Division; Quazi Asaduzzaman, Head of Fund Operations, SAML and Sazzad Mahmud, Manager (Accounts & Admin), SAML were also present in the ceremony.
Under the law, the company will submit the trust deed to the Bangladesh Securities and Exchange Commission (BSEC) shortly.
After the approval of the regulatory body, the remaining activities will continue in phases, said the statement.