Bangladesh Fund gets SEC nod
Tuesday, 19 April 2011
FE Report
The securities regulator has given green signal to much-waited Tk 50 billion open-end mutual fund -- Bangladesh Fund -- as per the existing rules of mutual fund, officials said. The regulatory consent came at a commission meeting held Monday at the office of the Securities and Exchange Commission (SEC). The SEC spokesman and Executive Director Mohammad Saifur Rahman said this at a press briefing after the meeting. As per regulator's nod, the initial size of the fund will be Tk 15 billion and the remaining fund amounting to Tk 35 billion will have to be collected from the capital market. The face value of the fund's unit has been fixed at Tk 100. "At today's meeting the commission has approved the trust deed and the investment management agreement of the fund," Mr. Rahman told the reporters. He said the commission has allowed the ICB (Investment Corporation of Bangladesh) Capital Management Limited to work as custodian and trustee of Bangladesh Fund. The ICB is the sponsor of the fund. Mr. Rahman said after submitting the certified copy to the SEC, Bangladesh Fund will be eligible to run its operation. Bangladesh Fund wanted exemption in some cases terming it 'contingency fund' from the securities regulator. The exemption was sought to relax the mutual fund act to invest fifty per cent of the fund in money market and the remaining fund in the capital market. But the act says a mutual fund must invest seventy five per cent in the capital market and the remaining in other places. "The commission has no way to bypass the existing rules in giving consent to Bangladesh Fund. That's this fund will have to comply with the existing rules," an SEC official said. Bangladesh Fund also sought waiver in paying full registration fee but the regulator refused the proposal, as auditors can make the SEC responsible for considering the registration fees. The fund also demanded to buy ten per cent shares of state-own enterprises at face value. "We have no comments about this demand as it is a matter of government," the official said. The SEC has not allowed Bangladesh Fund to ensure a quota of five per cent shares in forthcoming IPOs (initial public offerings). "In this case, the regulator has also followed the existing rules," the official added. ICB Asset Management Company Limited has been appointed as fund manager of Bangladesh Fund. The joint sponsors of the fund include Sonali Bank, Janata Bank, Agrani Bank, Rupali Bank, Bangladesh Development Bank, Sadharan Bima Corporation and Jibon Bima Corporation.
The securities regulator has given green signal to much-waited Tk 50 billion open-end mutual fund -- Bangladesh Fund -- as per the existing rules of mutual fund, officials said. The regulatory consent came at a commission meeting held Monday at the office of the Securities and Exchange Commission (SEC). The SEC spokesman and Executive Director Mohammad Saifur Rahman said this at a press briefing after the meeting. As per regulator's nod, the initial size of the fund will be Tk 15 billion and the remaining fund amounting to Tk 35 billion will have to be collected from the capital market. The face value of the fund's unit has been fixed at Tk 100. "At today's meeting the commission has approved the trust deed and the investment management agreement of the fund," Mr. Rahman told the reporters. He said the commission has allowed the ICB (Investment Corporation of Bangladesh) Capital Management Limited to work as custodian and trustee of Bangladesh Fund. The ICB is the sponsor of the fund. Mr. Rahman said after submitting the certified copy to the SEC, Bangladesh Fund will be eligible to run its operation. Bangladesh Fund wanted exemption in some cases terming it 'contingency fund' from the securities regulator. The exemption was sought to relax the mutual fund act to invest fifty per cent of the fund in money market and the remaining fund in the capital market. But the act says a mutual fund must invest seventy five per cent in the capital market and the remaining in other places. "The commission has no way to bypass the existing rules in giving consent to Bangladesh Fund. That's this fund will have to comply with the existing rules," an SEC official said. Bangladesh Fund also sought waiver in paying full registration fee but the regulator refused the proposal, as auditors can make the SEC responsible for considering the registration fees. The fund also demanded to buy ten per cent shares of state-own enterprises at face value. "We have no comments about this demand as it is a matter of government," the official said. The SEC has not allowed Bangladesh Fund to ensure a quota of five per cent shares in forthcoming IPOs (initial public offerings). "In this case, the regulator has also followed the existing rules," the official added. ICB Asset Management Company Limited has been appointed as fund manager of Bangladesh Fund. The joint sponsors of the fund include Sonali Bank, Janata Bank, Agrani Bank, Rupali Bank, Bangladesh Development Bank, Sadharan Bima Corporation and Jibon Bima Corporation.