BSEC moves to protect investors warns Asset manager

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BSEC moves to protect investors warns Asset manager

The Bangladesh Securities and Exchange Commission (BSEC) has taken strict measures to strengthen oversight in the asset management sector, issuing a final warning to Asian Tiger Capital Partners Asset Management Limited over a shortfall in its net assets.

As part of the directive, the company has been given a six-month deadline to restore its financial position. If it fails to meet the requirement within this period, it risks permanent cancellation of its registration. BSEC stated that the firm must raise its net assets to at least 90 percent of its paid-up capital, failing which formal proceedings will be initiated under existing securities laws.

In addition to the warning, the regulator has also flagged other regulatory violations and decided to issue an official caution to the company.

BSEC has also taken action against trustees দায় to lapses in oversight. Bangladesh General Insurance Company (BGIC) and the Investment Corporation of Bangladesh (ICB), which serve as trustees of funds managed by Asian Tiger Capital, have been warned for failing to properly discharge their responsibilities.

Specifically, BGIC was cautioned over its role as trustee of the Asian Tiger Sandhani Life Growth Fund, while ICB received a warning for regulatory breaches in managing the ATC Shariah Unit Fund.

The matter has been assigned to BSEC’s Enforcement Division, which will oversee compliance and take further legal action if necessary, including possible cancellation of registration.

Market insiders say weak financial footing of asset management companies poses risks to investors’ funds, making strict regulatory enforcement essential for investor protection.

Responding to the development, the company’s Chief Executive Officer Sohel Nadim Rahman said the current economic conditions have made business operations challenging. He acknowledged that meeting the required net asset level within the given timeframe will be difficult, but said the company is making efforts to comply.

Analysts believe the regulator’s tighter supervision of asset managers and fund trustees will help restore confidence in the market, particularly in the mutual fund sector, where weak financial health often undermines investor trust.

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