Call to extend tenure of 8 closed-end mutual funds
Wednesday, 5 May 2010
FE Report
The state-owned Investment Corporation of Bangladesh (ICB) has requested the securities regulator to extend the tenure of its eight closed-end mutual funds that are scheduled for redemption by 2011.
Closed-end mutual funds had no specific tenure or maturity period when introduced in 1980 under the Controller of Capital Issues and eight funds managed by ICB Asset Management Company Ltd. were floated between 1980 and 1996.
In 2007, SEC introduced the mutual funds rules and in December 2009 issued a directive for redeeming the funds, which were floated in the 80's and early 90's and had crossed 10 years, by 2011.
The ICB disputed the time-frame and insisted that the 10-year period should be counted from 2007 when the rules were introduced.
The state-owned Investment Corporation of Bangladesh (ICB) has requested the securities regulator to extend the tenure of its eight closed-end mutual funds that are scheduled for redemption by 2011.
Closed-end mutual funds had no specific tenure or maturity period when introduced in 1980 under the Controller of Capital Issues and eight funds managed by ICB Asset Management Company Ltd. were floated between 1980 and 1996.
In 2007, SEC introduced the mutual funds rules and in December 2009 issued a directive for redeeming the funds, which were floated in the 80's and early 90's and had crossed 10 years, by 2011.
The ICB disputed the time-frame and insisted that the 10-year period should be counted from 2007 when the rules were introduced.