BM Desk : In order to boost institutional investment in mutual funds on the capital market, the government is thinking of loosening the investment regulations and extending the duration of the Tk 200 crore special fund. For this reason, a high-level meeting was held on Monday, June 23, at the Ministry of Finance.
Top executives from both state-owned and private banks attended the meeting, along with Anisuzzaman Chowdhury, Special Assistant to the Chief Advisor; Khondaker Rashed Maksud, Chairman of the Bangladesh Securities and Exchange Commission (BSEC); Nazma Mobarek, Secretary of the Financial Institutions Division; and Nurun Nahar, Deputy Governor of Bangladesh Bank.
Only mutual funds that have paid cash dividends of five percent or more for three years in a row and whose net asset value (NAV) exceeds their face value are now eligible to receive investments from this fund. The discussion focused on easing these restrictions in order to further broaden the range of mutual fund investments.
Participants also discussed restoring investor confidence, promoting the listing of high-quality companies in the capital market, and developing a long-term strategy for the mutual fund industry’s overall growth.
Institutional investment in the stock market will rise and long-term market stability will be guaranteed if the suggested reforms are put into effect, according to many Ministry of Finance sources.
