FE Today Logo
Search date: 02-04-2018 Return to current date: Click here

Premature conversion proposal of fund under BSEC determination

April 02, 2018 00:00:00

Grameen One: Scheme Two: Grameen Fund, the trustees of the mutual fund at its meeting held on March 29, 2018 noted that Grameen One: Scheme Two (the second Scheme of Grameen Mutual Fund One) was listed with the Stock Exchanges in September 2008 with a primary life of 15 years, up to September 2023, from listing as per the prospectus of the Scheme (Chapter 3, Page 12) approved by the Bangladesh Securities & Exchange Commission (BSEC) vide letter no. SEC/Reg/Grameen/Gen-159/2008/282 of June 03, 2008. However, the BSEC communicated to the Trustee that applying, apparently retrospectively, condition of BSEC Order no. SEC/CMRRCD/2006-157/10/pro/20 of January 24, 2010, the tenure of the Scheme should be curtailed with pre-emptive and premature conversion/ redemption after completion of ten years in September 2018. As per Directive No. SEC/CMRRCD/2009-193/175/Admin/62 of July 08, 2015, under which closed-end mutual funds may be converted as open-end funds on maturity, where any such proposal and modalities thereof requires approval from the Board of the Asset Management Company (AMC) as well as the Trustee, prior to placing at any unit-holders' meeting, that is also required to be called to vote and decide on the matter (condition no.2). Therefore, the Trustees, under compulsion and obligation to the unit-holders, resolved to offer a conversion proposal to the unit-holders in due course, on receiving regulatory consent from the BSEC and following all legal procedures on the matter. ln view of the above, the trade suspension date will be 03 September 2018 and the effective date 04 September 2018, subject to consent of the Commission.

— CSE Online

Share if you like