The securities regulator plans to revise the investment ceiling of
mutual fund (MF) once again to boost the returns by reducing their
investment risks, officials said.
Officials of the Bangladesh Securities and Exchange Commission (BSEC) say that the regulator has been thinking about the reduction of the MF's investment ceiling following verbal proposals of some fund managers.
The securities regulator recently eased the investment thresholds of the MFs by lowering the quota of making investments in capital market from the 75 per cent to 60 per cent.
Despite the regulatory move the MF sector is yet to overcome the crisis prevailing for more than two years.
"The securities regulator plans to facilitate the MFs by easing or removing the investment bar so that the fund managers can inject or withdraw funds from a sector considering their returns," said a senior official of the BSEC.
He said presently the fund managers are not able to reduce their investments in capital market due to the regulatory bar.
"The fund managers think that their investment should be increased in money market during the continuous sluggish period of the capital market," the BSEC official said.
The official, however, said that the regulatory move is at the initial stage and the BSEC will take decision considering the pros and cons of the country's capital markets.
When asked, some market insiders said the investment ceiling of the MFs should not be changed in such a way that the capital market can be affected.
Among 41 listed MFs, 75 per cent or 31 MFs were traded below their face value on Wednesday.
Officials of the Bangladesh Securities and Exchange Commission (BSEC) say that the regulator has been thinking about the reduction of the MF's investment ceiling following verbal proposals of some fund managers.
The securities regulator recently eased the investment thresholds of the MFs by lowering the quota of making investments in capital market from the 75 per cent to 60 per cent.
Despite the regulatory move the MF sector is yet to overcome the crisis prevailing for more than two years.
"The securities regulator plans to facilitate the MFs by easing or removing the investment bar so that the fund managers can inject or withdraw funds from a sector considering their returns," said a senior official of the BSEC.
He said presently the fund managers are not able to reduce their investments in capital market due to the regulatory bar.
"The fund managers think that their investment should be increased in money market during the continuous sluggish period of the capital market," the BSEC official said.
The official, however, said that the regulatory move is at the initial stage and the BSEC will take decision considering the pros and cons of the country's capital markets.
When asked, some market insiders said the investment ceiling of the MFs should not be changed in such a way that the capital market can be affected.
Among 41 listed MFs, 75 per cent or 31 MFs were traded below their face value on Wednesday.
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