Trustee seeks regulator's view to decide MF's fate

FE Report
The trustee of Grameen One: Scheme Two, a closed-end mutual fund (MF), has sought regulatory opinion to decide their position regarding continuation, or liquidation, or conversion of the fund.
The move came as the tenure of the MF will end this year as per 10-year tenure set for all the closed-end MFs.
Following the regulatory approval, Grameen One: Scheme Two was floated in 2008 with a tenure of 15 years. As per the regulatory approval, the fund's tenure is supposed to end in 2023.
But after flotation of Grameen One: Scheme Two, Bangladesh Securities and Exchange Commission (BSEC) had issued a directive, setting 10-year tenure for all the closed-end MFs.
In last year, the trustee of Grameen One: Scheme Two wanted to know the regulatory decision regarding continuation or liquidation or conversion of the fund.
Then the BSEC said all closed-end MFs will be liquidated or converted into open-ended ones on completion of 10-year tenure subject to approval of the unit holders.
Recently, the trustee has sent another letter to the BSEC, seeking the regulator's decision about the Grameen One: Scheme Two.
A BSEC official told the FE that the trustee will have to comply with the regulatory directive regarding liquidation or conversion of the fund on completion of the 10-year tenure.
"The BSEC will reply to the trustee's letter soon in the light of the directive having a tenure of 10-year for all closed-end MF. The fund will be converted into open-end one or will be liquidated subject to approval of the unit holders," the BSEC official said.
After issuance of the BSEC's directive, another closed-end MF Grameen One: Scheme One was liquidated, following the unit holders' consent.
Besides, eight more closed-end MFs managed by the Investment Corporation of Bangladesh (ICB) were converted into open-ended ones.
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