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BSEC to meet mutual fund managers over reforms

Staff Correspondent
27 Nov 2020 14:36:32 | Update: 27 Nov 2020 14:36:32
BSEC to meet mutual fund managers over reforms

Bangladesh Securities and Exchange Commission (BSEC), the regulator of the capital market, will hold a meeting with the chief executives (CEOs) of mutual fund asset management organizations on November 29, sources said.

It is learned that the meeting will be held at 11:00am on the Sunday at the commission's own office. The meeting will be attended by BSEC Chairman Prof Shibli Rubaiyat-ul-Islam, Commissioners and officials of the departments concerned.

This will be the first high-level formal meeting of the BSEC with the CEOs of mutual fund asset management organizations. It is learned that various structural and legal reforms of the mutual fund will be discussed at the meeting.

Earlier, margin loans were introduced in all the mutual fund units listed in the market, according to the regulatory body Bangladesh Securities and Exchange Commission (BSEC). This was stated in a press release issued on Monday (November 23) to clarify the margin loan in the unit transaction.

BSEC Executive Director and Spokesperson Mohammad Rezaul Karim said that before October 26, 2009, margin loans were introduced in mutual funds. However, on October 26, the BSEC stopped it through a directive. On December 30, 2010, another directive introduced to margin loan facility in mutual funds. As a result, margin loans of all mutual funds are introduced and maintained since then.

By the way, mutual funds play a progressive role in the stability and development of capital markets in different countries of the world. But in the capital market of Bangladesh, mutual funds are regressive. Due to which investors are not interested in investing in mutual funds.

But the current commission wants to restore good governance to the sector for wooing investment in mutual funds. The commission is working to strengthen mutual funds, the BSEC chairman said. The meeting is going to be held in continuation of this.

 

 

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