ICB mutual funds and small investors

The Bangladesh Security Exchange Commission (BSEC) on June 29, 2015 set a fresh deadline at a commission meeting that Investment Corporation of Bangladesh (ICB) would have to complete abolition or conversion of its expired mutual funds to open-ended mutual ones by December 2016. In 2009 BSEC asked ICB to redeem the mutual funds which were past 10 years of listing within 2011. ICB did not follow the directive of BSEC. Later the deadline was extended to 2014. This time also ICB did not comply with the directive and asked for extension of time for further 10 years. BSEC did not agree. Denying the interest of unit holders and commitment of the mutual funds BSEC issued a decision that the funds need not be redeemed ever as those would be converted to open-end ones. Indeed BSEC bowed to the demand of ICB, which is not rational at all. If the funds are redeemed the unit holders could be financially benefited as the net asset values of the mutual funds are much higher than the market prices. The decision of BSEC denied the financial interest of ICB unit holders. I would, therefore, ask the BSEC authority to play its role rationally and help small investors gain financially.

Md. Ashraf Hossain

120, Central Bashaboo, Dhaka-1214