The tenure of two more closed-end mutual funds, managed by ICB Asset Management Company, have been extended for another 10 years, said an official disclosure on Tuesday.
The two mutual funds are Phoenix Finance 1st Mutual Fund and ICB AMCL Third NRB Mutual Fund.
The Phoenix Finance 1st Mutual Fund's tenure has been extended up to May 3, 2030 while ICB AMCL Third NRB Mutual Fund's up to May 19, 2030, according to the disclosure.
The Phoenix Finance 1st Mutual Fund has reported its net asset value (NAV) of Tk 5.85 per unit on the basis of the current market price and Tk 11.93 per unit on the basis of the cost price against the face value of Tk 10 as of the close of operation on March 23.
Each unit price of Phoenix Finance 1st Mutual Fund closed at Tk 8.10 on Tuesday, remaining unchanged over the previous day on the Dhaka Stock Exchange.
ICB Third NRB Mutual Fund has reported its net asset value (NAV) of Tk 5.52 per unit on the basis of the current market price and Tk 11.74 per unit on the basis of the cost price against the face value of Tk 10 as of the close of operation on March 23.
Each unit price of ICB Third NRB Mutual Fund closed at Tk 5.30 on Tuesday, remaining unchanged over the previous day on the DSE.
ICB Asset Management has informed that by order of the government, the BSEC through the exercise of its power accorded by the Securities and Exchange Ordinance, 1969 (XVII of 1969) Section 20A, has given consent to extend the tenure of these existing mutual funds for another 10 years each in relaxation of all applicable rules & regulations and procedures.
Earlier in September 2018, the stock market regulator had given a go-ahead to the extension of the tenure of closed-end mutual funds and handed over the right to the asset managers.
In this regard, the Bangladesh Securities and Exchange Commission also issued a directive scrapping its previous directive regarding conversion or liquidation of closed-end MFs on completion of the tenure of ten years.
The existing closed-end MFs that are unwilling to extend tenure will be allowed to be converted or liquidated as per the rules, the BSEC directive said.
According to the BSEC directive, the total tenure, including another term of ten years, of the existing closed-end mutual funds will not be more than 20 years.
Currently, 37 closed-end mutual funds are listed on the Dhaka Stock Exchange.
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