Directive on Foreign Company to be a sponsor of Mutual Fund

BANGLADESH SECURITIES AND EXCHANGE COMMISSION
Securities Commission Bhaban
E-6/C Agargaon, Sher-e-Bangla Nagar
Administrative Area, Dhaka1207, Bangladesh

DIRECTIVE
Dated, 03 May 2021

No. BSEC/CMRRCD/2009-193/18- Whereas, the Bangladesh Securities and Exchange Commission (hereinafter referred to as the “Commission”) deems it to be appropriate that in the interest of investors and development of securities market, certain directions should be issued to create scope for foreign investment in the securities market;

Now, therefore, in exercise of powers conferred by section 20A of the Securities and Exchange Ordinance, 1969 (Ordinance No. XVII of 1969), the Commission hereby directs the foreign company or investor to comply with the following requirements in order to be a sponsor of any mutual fund:-

(i) Any foreign company, either public or private, shall be eligible to be a sponsor of any mutual fund either single or jointly with any local eligible sponsor.

(ii) Each foreign company, being a sponsor of mutual fund, either single or jointly with any local eligible sponsor, shall meet the requirements to create a trust as per the Trust Act, 1882 (Act No. II of 1882):

Provided that in case of joint sponsor, local sponsor may be appointed to create the trust and other necessary activities in this regard.

(iii) No foreign company as a sponsor of mutual fund shall subscribe more than 25% of the fund size.

This directive shall have immediate effect.

By order of the Bangladesh Securities and Exchange Commission

(Signature)

Professor Shibli Rubayat-Ul-Islam
Chairman.

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