B Mirror Report : The Bangladesh Securities and Exchange Commission (BSEC) has approved the draft prospectuses and abridged versions of three open-end mutual funds to raise a total of Tk 7.5 billion from the capital market. Each fund will independently collect Tk 2.5 billion through public issuance.

The three open-end mutual funds are the Midland Bank Growth Fund, Midland Bank Balanced Fund, and Sondhani AML SLFL Shariah Fund.

The approval was granted at the 992nd commission meeting of the BSEC, held on Tuesday (13 January) and chaired by BSEC Chairman Khondaker Rashed Maqsood. The information was disclosed in a press release signed by BSEC Director and Spokesperson Md. Abul Kalam.

According to the BSEC statement, of the combined Tk 5 billion target for the Midland Bank Growth Fund and the Midland Bank Balanced Fund, the sponsor—Midland Bank PLC—has contributed Tk 500 million at Tk 250 million for each fund. The remaining Tk 4.5 billion will be raised from general investors, with Tk 2.25 billion allocated to each fund. The face value of each unit of the two funds has been set at Tk 10.

Midland Bank Asset Management Company Limited will serve as the asset manager for both funds, while Sondhani Life Insurance Company Limited will act as the trustee and Commercial Bank of Ceylon PLC as the custodian.

Meanwhile, for the Sondhani AML SLFL Shariah Fund, of the total Tk 2.5 billion fund size, the sponsor Sondhani Life Finance Limited has contributed Tk 250 million. The remaining Tk 2.25 billion will be raised from general investors. The face value of each unit of this fund has also been fixed at Tk 10.

Sondhani Asset Management Company Limited will function as the asset manager of the fund, Bangladesh General Insurance Company Limited as the trustee, and Commercial Bank of Ceylon PLC as the custodian.