DSE for investor-friendly mutual funds
Monday, 13 April 2009
FE Report
Dhaka Stock Exchange (DSE) has proposed some amendments in the existing rules to make the mutual funds investor-friendly.
"We are not at all against the cancellation of quota reserved in IPOs for mutual funds, rather we want to fix the minimum size of a mutual fund at Tk 500 million," DSE president Md Rakibur Rahman said Sunday in a press conference in the city.
He said DSE will also propose to the Securities and Exchange Commission (SEC) to allow the sponsors to float a mutual fund only after making a portfolio consisting of 80 per cent of the proposed size.
"We feel the mutual fund industry will be able to play its due role only after making a portfolio by the sponsors and announcing the net asset value of the product ahead of subscription by the general investors," DSE vice president Shakil Rizvi said.
He said all the developed stock market in the world follow this system and Bangladesh market is still lagging behind in this case putting the investors' money at risk.
DSE also wants to reduce the pre-IPO lock-in period so that the market can witness an adequate supply of shares.
The DSE leaders thanked the Prime Minister for her patient hearing to the proposals of the DSE when they met her Thursday last.
"The honourable Prime Minister held a meeting with us for a long two hours and we hope the assurance of the PM will help the stock market grow in a healthy way," Mr Rakibur Rahman said.
He said the top executive of the country assured the DSE to establish a re-financing window and introduce buy back system to support the stock market during its bearish mood.
The bourse proposed the introduction of share buyback system in order to 'save' the investors in the falling market.
"The Prime Minister is positive to implement the proposals and assures to extend her all-out cooperation to make the market vibrant," Mr Rakibur said.
"The government will expedite in share offloading of a number of SoEs," he said adding that the DSE was able to finance in installing satellite.
Dhaka Stock Exchange (DSE) has proposed some amendments in the existing rules to make the mutual funds investor-friendly.
"We are not at all against the cancellation of quota reserved in IPOs for mutual funds, rather we want to fix the minimum size of a mutual fund at Tk 500 million," DSE president Md Rakibur Rahman said Sunday in a press conference in the city.
He said DSE will also propose to the Securities and Exchange Commission (SEC) to allow the sponsors to float a mutual fund only after making a portfolio consisting of 80 per cent of the proposed size.
"We feel the mutual fund industry will be able to play its due role only after making a portfolio by the sponsors and announcing the net asset value of the product ahead of subscription by the general investors," DSE vice president Shakil Rizvi said.
He said all the developed stock market in the world follow this system and Bangladesh market is still lagging behind in this case putting the investors' money at risk.
DSE also wants to reduce the pre-IPO lock-in period so that the market can witness an adequate supply of shares.
The DSE leaders thanked the Prime Minister for her patient hearing to the proposals of the DSE when they met her Thursday last.
"The honourable Prime Minister held a meeting with us for a long two hours and we hope the assurance of the PM will help the stock market grow in a healthy way," Mr Rakibur Rahman said.
He said the top executive of the country assured the DSE to establish a re-financing window and introduce buy back system to support the stock market during its bearish mood.
The bourse proposed the introduction of share buyback system in order to 'save' the investors in the falling market.
"The Prime Minister is positive to implement the proposals and assures to extend her all-out cooperation to make the market vibrant," Mr Rakibur said.
"The government will expedite in share offloading of a number of SoEs," he said adding that the DSE was able to finance in installing satellite.