B Mirror Report: The Bangladesh Securities and Exchange Commission (BSEC) has stepped up oversight of asset management companies over alleged breaches of investment limits by mutual funds in the stock market. In line with this, the commission has sought detailed information on investments from VIPB Asset Management Company Limited.

Recently, the BSEC’s Investment Management Division, MF & CIS Department, reportedly sent a letter to the CEO of VIPB Asset Management regarding the matter.

According to information received by the commission, several mutual funds managed by the asset management company have exceeded the maximum permitted investment in certain company shares. Under existing regulations, a mutual fund can invest a maximum of 10 percent of its total assets in a single company. However, in a few cases, this limit has allegedly been breached. The commission has requested a complete list of such investments, including the names of the securities, investment amounts, and explanations for exceeding the limits.

The BSEC letter instructs VIPB to provide detailed investment data for each mutual fund under its management, particularly highlighting securities where the approved maximum limit has been exceeded (as per Table-1). Additionally, the total investments in securities up to December 15, 2025, must also be reported.

The letter further states that, under the Bangladesh Securities and Exchange Commission (Mutual Fund) Regulations, 2025, the requested information and supporting documents must be submitted within three working days from the date of the directive.

VIPB currently manages six funds: VIPB Accelerated Income Unit Fund, VIPB Growth Fund, VIPB Balanced Fund, VIPB SEBL First Unit Fund, VIPB NLI First Unit Fund, and VIPB Fixed Income Fund.

Under the law, no mutual fund can invest more than 10 percent of its total fund in a single share. For example, a fund of Tk 100 crore can invest a maximum of Tk 10 crore in any one company.

Market observers say that the regulator’s increased monitoring of the mutual fund sector will help restore investor confidence. Breaching investment limits concentrates risk, which could result in long-term losses for unit-holders. The regulator’s initiative is therefore considered timely. Sometimes, limits may be inadvertently exceeded due to market conditions or share price increases, but in such cases, adjustments should be made promptly, and the regulator must be informed. BSEC’s move is expected to enhance transparency and accountability, encouraging greater caution in mutual fund management.

A BSEC official, speaking on condition of anonymity, said, “Following BSEC regulations on mutual fund investments is mandatory. Excessive investment in a single company increases risk and can harm investors’ interests. Therefore, detailed information has been requested from the concerned institution, and if necessary, the regulator will take further action.”