FE Report

The Securities and Exchange Commission (SEC) has issued trustee licences of mutual fund to the two private financial institutions.

The two institutions -- Bangladesh General Insurance Company (BGIC) and Standard Chartered Bank -- recently received the licences to act as trustee of mutual funds permanently.

The state-owned Investment Corporation of Bangladesh (ICB) was the only holder of permanent trustee licence of mutual fund.

"The Securities and Exchange Commission (SEC) has given permission to the BGIC and Standard Chartered Bank to act as trustees of mutual funds from now on by issuing licences," said Anwarul Kabir Bhuiyan, executive director of the SEC.

"It is a good move by the commission as it will increase competition in providing services to the mutual funds," said Reaz Islam, chief executive officer of the LR Global Bangladesh, an asset management company(AMC).

"Trustee and custodial functions are very important for mutual funds, he said adding that the decision will provide alternatives for the AMCs.

The BGIC is the trustee of the proposed IDLC and BGIC mutual funds. Standard Charted Bank is the custodian of the proposed Green Delta Insurance, IDLC and BGIC mutual funds, which are now awaiting approval of the SEC.

The SEC also approved IPO (initial public offering) applications of three companies-ICB AMCL 2nd Mutual Fund, Islamic Insurance Company Ltd and Marico Bangladesh Ltd.

The total IPO size of the ICB AMCL 2nd Mutual Fund is Tk 500 million, of which Tk 100 million has been kept for sponsors and Tk 400 million for general investors. Its face value is Tk 100 per share.

Islamic Insurance Company will float shares worth Tk 150 million. Of which, Tk 90 million is allocated for general investors and Tk 60 million for sponsors.

The face value has been fixed at Tk 100 each share.

Marico Bangladesh Ltd (MBL), a 100 per cent-owned foreign company, will float shares to raise funds to the tune of around Tk 134 million from stock markets to repay bank loans.

The company, a subsidiary of Marico Limited, India, began operation in Bangladesh in 2002. Its existing paid up capital is Tk 2800 million. The value of the share was fixed at Tk 90, which includes a premium Tk 80.