Order regarding re-investment of mutual fund — BSEC — BD

Bangladesh Securities and Exchange Commission
Securities Commission Building
E-6/C Agargaon
Sher-e-Bangla Nagar Administrative Area
Dhaka-1207, Bangladesh.

No.-BSEC/CMARRCID/2009-193/228 July 16, 2019

Order

Whereas, the Bangladesh Securities and Exchange Commission has decided that it is necessary to issue certain directives regarding mutual funds for the continuous development of the capital market and the interest of investors;

Therefore, in exercise of the powers conferred under Section 20A of the Securities and Exchange Ordinance, 1969 (Ordinance No. XVII of 1969), the Bangladesh Securities and Exchange Commission hereby issues the following order in respect of mutual funds, namely:

(a) The re-investment method in respect of dividend payment is hereby abolished. As a result, only cash dividend payment shall be made in respect of both open-ended and closed-ended funds;

and

(b) In respect of open-ended funds, the promoter's shares shall be retained for one (1) year from the date of formation of the fund, similar to closed-ended funds, and subsequently, at least 10 (ten) percent of the said retained shares shall be continuously retained by the promoter until the termination of the fund.

This order shall come into force immediately.

By Order of the Bangladesh Securities and Exchange Commission

(Signature)

Khandakar Kamal Uddin
Commissioner.

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Issued under

Ordinance No. XVII of 1969Not in RegAlert
“in exercise of the powers conferred under Section 20A of the Securities and Exchange Ordinance, 1969 (Ordinance No. XVII of 1969)”