SEC approves BD Fund operation

FE Report The Securities regulator Tuesday gave operational approval to the much-awaited Tk 50 billion largest ever open-ended mutual fund--Bangladesh Fund (BF), one IPO and one right approval, official said. The decision came at a commission meeting, chaired by Securities and Exchange Commission (SEC) chairman Professor M. Khairul Hossain, held at the SEC office on the day. "Though the Bangladesh Fund is yet to collect its required fund to go operation, the SEC gave operational approval, considering existing market situation," the SEC spokesman Mohammad Saifur Rahman said after the meeting. According to the rule of mutual funds, any mutual fund cannot go operation until 60 per cent of its total fund size is managed. But the SEC gave approval, considering the existing market situation, he said. The Investment Corporation of Bangladesh (ICB) is the leading sponsor of the Fund. The other sponsors are: Sonali Bank, Janata Bank, Agrani Bank, Rupali Bank, Bangladesh Development Bank, Sadharan Bima Corporation and Jibon Bima Corporation. The sponsors have already contributed Tk 15 billion to the fund and the rest Tk 35 billion will be collected by selling units to individuals and institutions. Meanwhile, two private banks -- AB Bank and Dhaka Bank -- bought units of BF valued at Tk 4 million -- Tk 2 million each. The ICB and other sponsors took an initiative on March 6 this year to launch the country's largest ever open-ended mutual fund to support the fund-stricken stock market. They also termed Bangladesh Fund as "contingency fund". Padma Islamic Ins IPO okayed: The SEC approved the initial public offering (IPO) of Padma Islamic Life insurance. As many as 12 million shares will be floated through its IPO to raise Tk 120 million from the capital market with face value at Tk 10. Rupali Insurance rights approved: The SEC also approved the rights offer of Rupali Insurance, said Saifur Rahman. The company will offer one rights share for each existing share issuing more than 17.9 million ordinary shares worth Tk 394.8 million to complete the paid-up capital requirement.