Regulatory Alerts2016-03-30
Added · Updated
DFIM Circular No. 04: Investment in Non-listed Special Purpose Funds Registered with BSEC
Financial Institutions in Bangladesh are prohibited from investing in non-listed special purpose funds registered with the Bangladesh Securities and Exchange Commission unless they adhere to specific guidelines. Aggregate investment in such funds cannot exceed 50 percent of an institution's paid-up capital, while investment in any single fund is capped at the lower of 10 percent of paid-up capital or 20 percent of that fund. Board of Directors approval and prior authorization from Bangladesh Bank are required before committing to any investment, accompanied by submission of detailed capital, liquidity, and asset-liability data. The trustee must declare that the fund will not purchase instruments from the investing institution or its related parties and holds no financial claims over banks or financial institutions, with such investments excluded from the limits under section 16 of the Financial Institutions Act, 1993.
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