Investment cap for mutual funds goes
The Securities and Exchange Commission yesterday decided to let mutual funds invest in securities freely, in a move that will increase the flow of funds to the cash-strapped stockmarket.“The SEC has lifted the investment ceiling for mutual funds as they urged the regulator to do so,” said Saifur Rahman, an executive director of SEC.
The new decision will remain in force until December 31, he said.
As per the securities law, a mutual fund was allowed to invest 10 percent of its capital in a single security and 25 percent in one sector.
“From now, we can invest freely in any sector or stock,” said an asset manager.
Asset managers on Wednesday urged the stockmarket regulator to relax the ceiling of investment to increase the credit flow to the market which is now experiencing high volatility mainly due to a liquidity crunch.
The SEC approved the rights offer of Premier Leasing and Finance Ltd. The company will issue 52.09 lakh ordinary shares of Tk 100 each, totalling Tk 52.09 crore. The company will offer one rights share for each existing share.
The net asset value (NAV) of the company is Tk 156.07, while the earnings per share are Tk 151.01, according to the last audited financial report.
Meanwhile, the SEC has approved the prospectus of a Tk 50 crore closed-end mutual fund of Sandhani Life Unit Fund. The face value of each unit is Tk 10. Alif Asset Management Ltd will be the asset manager for it.
The SEC also approved the trust deed of a Tk 100 crore of MTB Unit Fund. Mutual Trust Bank will provide Tk 20 crore and Tk 80 crore will be colleted from the capital market. The asset manager of the fund is Alliance Asset Management.