RegAlertRule · BSEC · 31 May 2010
Notification on amendment to Mutual Fund Rules related to lock-in and placement limit
The Securities and Exchange Commission amended the Securities and Exchange Commission (Mutual Fund) Rules, 2001, by redefining 'promoter' in Rule 2, introducing a two-year lock-in period for promoters' shares under new Rule 28(3), and establishing specific placement limits for private placements under amended Rule 50C. These limits cap allocations at 10 lakh BDT for individuals, 1 crore BDT for unlisted companies or statutory bodies, and 5 crore BDT for listed companies, mutual funds, and recognized trust, pension, provident, or superannuation funds. The final list of such allocations must be included in the prospectus.
Notification
Date, 31 May, 2010
No. SECMRR/2006-157/38/Admin/-------- 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, after prior publication, hereby amends the Securities and Exchange Commission (Mutual Fund) Rules, 2001, as follows:
In the aforementioned Rules,
1. Clause (c) of sub-rule (1) of Rule 2 shall be replaced by the following, namely:
“(c) “Promoter” means any bank, financial institution, issuer company or statutory body, which forms a mutual fund either individually or jointly with any other bank, financial institution, issuer company, statutory body, recognized information registered trust fund, pension fund, provident fund or superannuation fund;”
2. A new sub-rule (3) shall be added after sub-rule (2) of Rule 28, namely:
“(3) Lock-in. – A lock-in shall remain in force for two (2) years from the date of receipt of the share registration certificate by the promoters of the asset manager.”
3. Rule 50C shall be amended as follows, namely:
“The existing rule under 50C shall be deemed to be sub-rule (1), and the following new sub-rule (2) shall be added thereafter:
(2) In the case of private placement of mutual funds, the promoters of the relevant fund shall be subject to the following limits:
(a) Maximum 10 (ten) lakh Taka in favor of a single individual;
(b) Maximum 1 (one) crore Taka in favor of an unlisted company or statutory body (only for their own portfolio);
(c) Maximum 5 (five) crore Taka in favor of listed companies and mutual funds (only for their own portfolio, however, the reserved quota shall not apply in the case of mutual funds); and
(d) No allocation exceeding 5 (five) crore Taka shall be made in favor of recognized information registered trust funds, pension funds, provident funds and superannuation funds (only for their own portfolio).
The final list regarding this shall be included in the prospectus.”
By Order of the Securities and Exchange Commission
Md. Ziauddin Hossain Khodoker
Chairman.
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The links and the sentences they come from (2)
- Amends
- Securities and Exchange Commission (Mutual Fund) Rules, 2001Not in RegAlert
“hereby amends the Securities and Exchange Commission (Mutual Fund) Rules, 2001, as follows:”
- Issued under
- Act No. 15 of 1993Not in RegAlert
“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)”
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