ICB MFs get extension

The securities regulator has censured the Investment Corporation of Bangladesh (ICB) for its failure to initiate the necessary process for winding up or conversion of its eight closed-end mutual funds (MFs) within the stipulated timeframe.
At the same time the Bangladesh Securities and Exchange Commission (BSEC) has set a new schedule to complete the process in two phases by December, 2016.  
The BSEC had earlier asked the ICB to initiate the process for winding up or conversion of its eight mutual funds by December 2014. However, the in August last the ICB in a letter had requested the securities regulator to allow the continuation of the closed-end mutual funds as usual.
ICB Managing Director Md. Fayekuzzaman acknowledged that they had received the letter sent by the securities regulator rescheduling the liquidation or conversion of the ICB mutual funds.

Asked about the next course of action, he said they are analysing the regulatory instruction.
"Earlier, we requested the regulator to review its decision so that our MFs can continue for the interest of industry and market," he said.    
As per regulatory decision, the ICB will have to wind up or convert its eight closed-end MFs according to the following schedule:
The securities regulator brought amendment to the rules of MFs on January 8, 2013 facilitating the conversion of the closed-end MFs into open-end ones.
As per the amendment, a closed-end MF can be converted into an open-end one on the basis of the consent given by three-fourth of the unit holders present at a special meeting arranged to take decision regarding winding up or conversion of the MF. In that case, the closed-end MF will be de-listed from the stock exchange.

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