Amendment to the Mutual Fund Rules dated 14.03.2011

Notification

Date: 14.03.2011

No. SECI/SAMR&R/SSD/2006-157/101/Position/- In exercise of the powers conferred under sub-section (1) of Section 24 of the Securities and Exchange Commission Act, 1993 (Act No. 15 of 1993), the Securities and Exchange Commission hereby amends the Securities and Exchange Commission (Mutual Fund) Rules, 2001, as follows:

In the said Rules,-

1. In Rule 12, clause (ch), the period '.' shall be deleted and replaced with a semicolon ';'.

2. After clause (ch) of Rule 12, new clauses (a) and (b) shall be inserted as follows:

(a) At the meeting of the Trustees of the Mutual Fund, a report on the negative net asset value of the Scheme/Fund or ownership shall be adopted/endorsed: At the same meeting, decisions regarding the declaration of dividends for the Scheme and the entitlement of shareholders (applicable to all Mutual Funds or ownerships) and the related corporate actions shall be taken and announced, except with the prior approval of the Commission;

Provided that,

(1) In cases where the Scheme/Unit Holders are required to pay dividends in cash or in any other form of entitlement (applicable to all Mutual Funds or ownerships) which requires prior approval of the Commission, at the time of announcing the aforementioned decision, the Trustees shall simultaneously issue a notice that the Scheme/decision will be implemented subject to the Commission's approval, and if such approval is not received within the stipulated time, it shall be immediately published or announced;

(2) If the aforementioned approval of the Commission is not received, it shall be immediately published or announced, and in such cases, the Trustees shall inform the Commission within 10 (ten) working days of the decision taken by the Trustees regarding the necessity of obtaining the Commission's decision in accordance with the Scheme/Rules, specifically regarding the payment of cash dividends, and publish or announce it; and

(3) All minutes of decisions taken by the Trustees shall be reported to the Secretary of the Stock Exchange or any other relevant authority on the same day or the next working day, and every such decision shall be published in at least two national newspapers within 30 (thirty) minutes by 3:00 PM after the Stock Exchange announcement.

(b) Declared cash dividends shall be distributed to Unit Holders by the Trustees within 30 (thirty) working days from the date of approval, through the following methods based on written instructions collected from Unit Holders:

Cash dividends shall be deposited into the Unit Holder's bank account through the designated bank for the Scheme;

Provided that, in this case, if the Unit Holder's bank charges any service charge, the Unit Holder shall bear it;

And further provided that, when the Unit Holder's bank account is credited with the cash dividend, a notice (Form No. 1) shall be issued to the Unit Holder simultaneously, stating among other things, the tax deducted (if any), the date of cash dividend payment, the amount, and the name of the Scheme's bank;

Or

In the case of Open-End Mutual Funds, dividends shall be credited to the Unit Holder's CDS (Central Depository System) account through the issuance of cash dividends and warrants (Payment Form).

3. Sub-rule (2) of Rule 50C shall be substituted as follows:

(2) In the case of a Private Placement of Mutual Funds, other than the Sponsor of the Scheme, allocations shall be made as follows:-

(a) For a single individual, a limit of BDT 25 (Twenty-five) Lakh;

(b) For a listed company or partnership firm (excluding its own portfolio and in that case), there shall be no limit on allocation;

(c) For a private company and Mutual Funds (excluding its own portfolio and for the purpose of, but not including reserved quotas in the case of Mutual Funds), there shall be no limit on allocation; and

(d) For Closed-End Funds, Pension Funds, Provident Funds, and Insurance Funds (including their own portfolio and for the purpose of), there shall be no limit on allocation.

This shall be subject to the condition that the total allocation shall not exceed 25%.

By Order of the Securities and Exchange Commission

Md. Jiyauddin Haque Khan

Chairman