Home ›› 10 Oct 2021 ›› Stock
The Bangladesh Securities and Exchange Commission (BSEC) has emphasized increasing the market capitalisation of mutual funds to bring depth to the capital market.
BSEC Chairman Professor Shibli Rubayat-Ul-Islam came up with the call while addressing a webinar on sustainable financing on Saturday, marking the World Investor Week.
“The market caps of mutual funds should be increased to Tk 1.5 lakh crore from the existing Tk 15,000 crore,” he said.
He urged the fund managers to work together burying the brawl among them for the interest of the market. “The fund managers should settle their internal conflicts through consultation and work in a coordinated manner to popularise the funds.”
The BSEC chairman, however, appreciated the mutual funds’ crucial role in making the stock market sustainable and vibrant.
He suggested the fund managers bring more foreign portfolio investments to the market by highlighting the country’s economic prospects.
About fixing charges of asset management companies, he said those who are performing well may charge the clients high, but there is no option for the substandard entities to take high fees.
He warned that tough action will be taken against any wrongdoers to bring discipline to the market.
The commission, as a regulator, is fully focused on upholding order in the capital market and providing quality services to the share traders, he said.
The BSEC has been carrying out a series of a promotional roadshow in different countries. The upcoming event is set to be held in the United Kingdom in the coming week.
About the roadshows, the BSEC chairman said, “We are not going to seek loans or help from the foreigners. Rather, we are going abroad to find investment partners.”
Noting that Bangladesh needs a fund of $860 billion to implement the sustainable development goals (SDG) by 2030, he said it is tough to raise the entire fund from the money market.
“That is why the capital market must be taken forward. We also need to attract more foreign investments,” he added.
Speaking at the function, BSEC Commissioner Dr Mizanur Rahman said the mutual funds need to grow by protecting the investors’ interests.
Asset managers must abide by the rules and regulations. The commission will provide all kinds of assistance to those who carry out activities in compliance with the law, he added.
The Association of Asset Management Companies and Mutual Funds (AAMCMF) organised the webinar presided over by its President Hasan Imam.
The AAMCMF president said now is the high time to invest in mutual funds as the funds’ net asset values are now higher than their unit prices.
Noting that the gap between the unit price and the NAV is now around 30 per cent, he said the gap will narrow in the way the capital market is going up.
The mutual funds paid a cash dividend of Tk 600 crore in total to their unit holders this year, according to him.
