The Bangladesh Securities and Exchange Commission (BSEC) has undertaken a fresh initiative to modernize and upgrade the mutual fund sector by revising disclosure formats, standards, and guidelines in line with global practices.

As part of the reform drive aligned with the newly introduced Mutual Fund Rules-2025, the regulator has formed a high-level committee comprising five experienced officials to oversee the process. The formation of the committee was confirmed through a recent official order issued by the BSEC.

Additional Director Sheikh Md. Lutfool Kabir has been appointed as the convener of the committee. Other members include Sultana Parveen, Md. Atikullah Khan, and Md. Touhidul Islam Saddam, while Md. Sagar Islam will serve as the member secretary.

According to regulatory sources, the primary objective of this initiative is to ensure that fund valuation and disclosure practices comply with international standards. This is expected to make critical information more accessible to general investors and enhance overall transparency in the sector. The move also aims to strengthen oversight in fund management and reporting systems.

The committee has been instructed to submit its review report within 40 working days. It will conduct a detailed assessment of whether the current disclosure framework and policies are consistent with the new rules and evolving market conditions, and recommend necessary reforms.

The committee’s scope of work includes developing a standard trust deed, designing updated formats for quarterly reporting and portfolio statements, and preparing clear guidelines for fund mergers or conversions. These steps are expected to establish a more uniform and robust documentation framework for the mutual fund sector.

Market analysts believe that modernizing disclosure practices will significantly improve market discipline and restore investor confidence. They view the formation of this committee as a continuation of BSEC’s recent efforts to enhance transparency in the stock market.

BSEC Director and spokesperson Md. Abul Kalam said the new rules include a provision allowing closed-end mutual funds to be converted into open-end funds. If a fund’s market price falls more than 25 percent below its Net Asset Value (NAV), trustees will be required to call an Extraordinary General Meeting (EGM). Based on investors’ opinions, the fund may then be converted or liquidated. He added that a transparent framework is essential for implementing such processes effectively, which the committee will help develop.