Amendment to the Securities and Exchange Commission (Mutual Fund) Rules-2001

Securities and Exchange Commission
Life Insurance Tower (16th, 17th and 21st Floor) 10, Dilkusha B/A, Dhaka-1000.

Notification

Date: 16 June 2008

No./SECMFRRCD/2006-159/Admin/01-30: In exercise of the powers conferred by Section 24 of the Securities and Exchange Commission Act, 1993 (Act No. 15 of 1993), and in accordance with the rules made under sub-section (1) of the said section, the Securities and Exchange Commission (Mutual Fund) Rules, 2001 are hereby further amended as follows:

In the said Rules,-

1. Clause (c) of sub-rule (1) of Rule 2 shall be replaced by the following clause (c), namely:-
   "(c) 'Promoter' means any company, bank, financial institution or insurance company, registered body, registered fund, such as Trust Fund, Registered Provident and Pension Fund, asset management company registered by the Commission or any other institution subject to the approval of the Commission, which forms a Mutual Fund in writing either individually or in association with any other company, bank, financial institution or insurance company, registered body, registered fund, such as Trust Fund, Registered Provident and Pension Fund, asset management company registered by the Commission or any other institution subject to the approval of the Commission;".

2. The proviso to clause (g) of Rule 9 shall be replaced by the following proviso, namely:-
   "Provided that, of the said ten percent, at least one-tenth (1/10) shall be retained by the Promoter in the case of Short-term Funds, for a period of 1 (one) year from the date of listing on the Stock Exchange, and in the case of Long-term Funds, for a period of 1 (one) year from the date of dissolution of the Fund."

3. A new sub-rule (3) shall be added after sub-rule (2) of Rule 10, namely:-
   "(3) A draft prospectus for the purpose of public offer (Public Offer) shall be submitted to the Commission within a period of not more than 3 (three) months from the date of registration of any Mutual Fund:
   Provided that, if the Commission deems it justified, it may extend the said time limit."

4. Sub-rule (1) of Rule 31 shall be replaced by the following sub-rule (1), namely:-
   "(1) Subject to the approval of the Commission, the Promoter of each Mutual Fund, or if empowered by the Trust Deed, the Trustee, shall appoint an Asset Manager for the management of the Mutual Fund's operations and the administration of its schemes, and shall enter into a contract covering the matters specified in the Third Schedule and other matters necessary for the investment of the Mutual Fund's corpus."

5. A new sub-rule (4) shall be added after sub-rule (3) of Rule 43, namely:-
   "(4) The Commission shall publish in a newspaper, within the time fixed by the Commission, any prospectus of a scheme approved by the Commission."

6. A new sub-rule (4) shall be added after sub-rule (3) of Rule 61, namely:-
   "(4) In determining the repurchase price per unit of a scheme by the Asset Manager (Repurchase Price), it may be increased or decreased by not more than 15% of the Net Asset Value (NAV) per unit."

7. Rule 66 shall be replaced by the following Rule 66, namely:-
   "66. Distribution of Dividend and its Limit.- Each Mutual Fund shall distribute dividends among the unit holders of each scheme in accordance with these Rules after the completion of its annual accounts, the amount of which shall not be less than 70 (seventy) percent of the annual profit of the said scheme;" and the existing proviso shall remain in force.

8. Clause 6 of the Second Schedule shall be deleted.

9. The words "appointed by the Promoter or Trustee" in Clause 1 of the Third Schedule shall be deleted.