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Thursday, April 9, 2009

DSE proposes MF rules restructuring

DSE proposes MF rules restructuring

The Dhaka Stock Exchange on Wednesday sent a set of proposals to the Securities and Exchange Commission, requesting the stock market regulatory body to restructure the mutual fund rules.
Earlier on the day, the bourse at a board meeting approved the proposals, recommended by its listing committee, said DSE senior vice-president Saiful Islam.
‘We have sent the proposals to the SEC for its consideration in restructuring the mutual fund rules,’ he said adding that the bourse took the move with a view to strengthening the sector.
Saiful said, ‘The bourse has proposed that mutual fund of under Tk 100 crore should not be allowed and there should not be scope of pre-IPO placement for mutual funds of under Tk 30 crore paid-up capitals.’
The DSE has proposed that there should be a lock-in period of at least a month on the shares of sponsors of mutual funds and of those who get shares in private placement, he said.
‘Reserved quota on IPO issues for mutual funds should be cancelled,’ he said.
Currently, mutual funds enjoy 10 per cent reserved quota in IPO subscription.
As all the mutual funds are of ‘A’ category, circuit breaker and circuit filter should be on from their debut trading day and the mutual funds should disclose their net asset value (based on market price) on daily basis, he added.
Five mutual funds worth around Tk 320 crore are waiting for the approval of the SEC for raising funds through issuing initial public offerings while three banks and an insurance company recently announced that they would float mutual funds.
In the board meeting, the DSE also approved the listing application of Bay Leasing and Investment Ltd.
‘Trading of the shares of the company will start at DSE on Sunday next,’ said Saiful.
A delegation of the DSE led by its president Md Rakibur Rahman will meet the prime minister, Sheikh Hasina, and the finance minister, AMA Muhith, at their offices separately today (Thursday), he said.
‘We will convey them the bourse’s proposals for the next national budget,’ he said.

The New Age



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