SEC clarifies directive on close-end mutual funds
Friday, 25 December 2009
FE Report
The Securities and Exchange Commission (SEC) Thursday clarified its recent directive on close-end mutual funds at a press conference in the city.
The two-year time-frame set by the SEC to re-deem listed close-end mutual funds will only be applicable for those having no tenure.
In future the tenure of newly approved funds cannot be extended beyond ten years, SEC member Mansur Alam said.
He also said the investors would not be losers at the time of review in future, as the directive on time frame was a decree.
"The previous close-end mutual funds were approved under the Mutual Fund Act 1997. But as it was replaced by Act 2001, all funds will now be treated under the new Act," Mr Alam told reporters.
SEC member Yeasin Ali said the SEC would approve new funds one after another according to capital market demand.
"About thirty mutual funds, which are awaiting SEC nod to float shares, will be approved one after another," he said.
The SEC in a directive Wednesday said closed-end mutual funds, which have crossed their tenures of ten years, must be re-deemed by 2011.
According to the SEC directive, the funds, which will be re-deemed are: 1st BSRS, 1st ICB, 2nd ICB, 3rd ICB, 4th ICB, 5th ICB, 6th ICB, 7th ICB and 8th ICB.
The Securities and Exchange Commission (SEC) Thursday clarified its recent directive on close-end mutual funds at a press conference in the city.
The two-year time-frame set by the SEC to re-deem listed close-end mutual funds will only be applicable for those having no tenure.
In future the tenure of newly approved funds cannot be extended beyond ten years, SEC member Mansur Alam said.
He also said the investors would not be losers at the time of review in future, as the directive on time frame was a decree.
"The previous close-end mutual funds were approved under the Mutual Fund Act 1997. But as it was replaced by Act 2001, all funds will now be treated under the new Act," Mr Alam told reporters.
SEC member Yeasin Ali said the SEC would approve new funds one after another according to capital market demand.
"About thirty mutual funds, which are awaiting SEC nod to float shares, will be approved one after another," he said.
The SEC in a directive Wednesday said closed-end mutual funds, which have crossed their tenures of ten years, must be re-deemed by 2011.
According to the SEC directive, the funds, which will be re-deemed are: 1st BSRS, 1st ICB, 2nd ICB, 3rd ICB, 4th ICB, 5th ICB, 6th ICB, 7th ICB and 8th ICB.