SEC won't allow any mutual fund below Tk 500m
Monday, 10 August 2009
FE Report
The country's securities regulator has fixed the minimum size of mutual funds (MFs) at Tk 500 million by amending mutual fund rules.
"No mutual funds having size below Tk 500 million will be allowed to float in the stock market from now on," said a spokesman of the Securities and Exchange Commission (SEC) after the commission meeting Sunday.
The commission has approved the amendment of the mutual fund rules to make the funds financially viable, he added. Under the previous rules, there was no restriction about the size of the funds.
Earlier, the country's prime bourse Dhaka Stock Exchange (DSE) made the same proposal regarding size of mutual funds.
Welcoming the latest move, AIMS Bangladesh managing director Yawer Syeed said, "This is a good move, as it will be cost-effective."
"Issue and management cost of a small size mutual fund is disproportionably higher. So, the SEC move will help make the mutual funds financially viable," he said.
Currently, 17 mutual funds, having a total issued paid-up capital of $48 million or Tk 3,316 million, are listed with the bourses.
The country's securities regulator has fixed the minimum size of mutual funds (MFs) at Tk 500 million by amending mutual fund rules.
"No mutual funds having size below Tk 500 million will be allowed to float in the stock market from now on," said a spokesman of the Securities and Exchange Commission (SEC) after the commission meeting Sunday.
The commission has approved the amendment of the mutual fund rules to make the funds financially viable, he added. Under the previous rules, there was no restriction about the size of the funds.
Earlier, the country's prime bourse Dhaka Stock Exchange (DSE) made the same proposal regarding size of mutual funds.
Welcoming the latest move, AIMS Bangladesh managing director Yawer Syeed said, "This is a good move, as it will be cost-effective."
"Issue and management cost of a small size mutual fund is disproportionably higher. So, the SEC move will help make the mutual funds financially viable," he said.
Currently, 17 mutual funds, having a total issued paid-up capital of $48 million or Tk 3,316 million, are listed with the bourses.