ICB assured to extend tenures of eight closed-end MFs
The government has assured the Investment Corporation of Bangladesh (ICB) to extend the tenures its eight closed-end mutual funds, which were earlier directed to redeem by December 31 this year, officials said.
The ICB Managing Director (MD) Md. Fayekuzzaman Monday said the assurance of extending the tenures came from the ministry of finance (MoF), considering the present situation of the stock market.
"The MoF said the tenures of our mutual funds will be extended," Mr. Fayekuzzaman told the reporters at a press briefing.
An SEC official also said the tenures ICB's closed-end mutual funds should be extended as the funds cannot be redeemed in the present market situation.
Two years back the Securities and Exchange Commission (SEC) had set December 31, 2011 deadline for the eight closed-end funds to wrap up their operation and go for redemption, meaning their assets must be distributed among the investors.
But the ICB officials begged three times to differ with the SEC's decision, saying the laws governing the mutual funds allows the eight funds -- the 1st, 2nd, 3rd, 4th, 5th, 6th, 7th and 8th ICB - more years of operation.
The regulator rule out the ICB's three proposals and then the ICB sought attention of the MoF to settle the issue, saying that the SEC in 2007 introduced the mutual fund rules where a maturity date of closed-end mutual funds was fixed at ten years. That's why the tenure of eight MFs should start from 2007.
