ICB seeks to make BF more attractive

Syful Islam The Investment Corporation of Bangladesh (ICB) has initiated a move to make the Tk 50-billion open-ended 'Bangladesh Fund' more attractive to investors. Last week the corporation placed before the finance ministry a set of proposals and sought the latter's approval for the same. "The proposals have been made to ensure fair management of the resources of the Fund, generate greater interest among the investors and help the Fund earn profit on a sustained basis," Managing Director of ICB Md Fayekuzzaman wrote to the secretary of the Banking Division while placing the proposals. The ICB's proposals include: setting aside 10 per cent shares at face value of the state-owned entities, which are now taking preparations to go public, for the Fund, making the profit of the Fund tax-free and allowing investment of undisclosed money in the Fund. The ICB also wanted the banks to invest in the Fund relaxing the rules and regulations concerned since a major portion of the Fund would be invested in the money market instruments. The ICB requested that the central bank consider taking the unit certificate of Bangladesh Fund as an approved-collateral. The ICB, state-run four commercial banks -- Sonali, Janata, Agrani and Rupali, Sadharan Bima Corporation and Jiban Bima Corporation have sponsored the Tk 50-billion Bangladesh Fund to help stabilise the country's flagging share market. In the letter Mr Fayekuzzaman said so far some Tk 13.88 billion out of sponsors' committed fund of Tk 15 billion has been invested. The Economic Affairs Adviser to the Prime Minister, Mashiur Rahman, on October 10 last launched the sale of the unit certificates of the Fund meant for various institutional investors, resident and non-resident Bangladeshis. Until the end of last month unit certificates worth some Tk 452 million were sold to them. The ICB is trying through road show and various media campaigns to attract the local and foreign investors to invest in the fund. Mr Fayekuzzaman said: "The Bangladesh Fund was considered an effective tool to stop the fall of share prices in the stock market and help regain the confidence of the investors. To ensure its meaningful role in the stock market in the future the base of the Fund needs to be made stronger."