MOVE TO STRENGTHEN MUTUAL FUND RULES OVERSIGHT
BSEC scraps 2001 MF Rules, clears draft of new regulations
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The stock market regulator has decided to repeal the existing rules governing mutual fund operations in Bangladesh and adopt new regulations designed to enhance accountability, strengthen governance, and provide greater protection for investors.
The Bangladesh Securities and Exchange Commission (BSEC) approved the decision at its meeting held on Tuesday.
In a press release, BSEC said: "Taking into account the recommendations of the Capital Market Reform Task Force and with the aim of ensuring maximum protection of the interests of investors and unit holders, the Commission has decided to repeal the Bangladesh Securities and Exchange Commission (Mutual Fund) Rules, 2001 and approve the draft of the Bangladesh Securities and Exchange Commission (Mutual Fund) Rules, 2025."
The previous set of rules had multiple loopholes that allowed fund managers to misuse public funds, leading to erosion of investor money and leaving many mutual funds with weak asset positions.
Following the change in leadership, the new Commission formed a task force to improve governance in the capital market, with reform of the mutual fund rules being one of its key mandates.
"The draft rules have been prepared to safeguard investors' interests, ensure good governance in the mutual fund sector, and clearly define the responsibilities and duties of trustees, custodians, and asset managers. At this stage, the draft rules will be published on the Commission's website and in national newspapers for public feedback," said the BSEC.
Contacted, BSEC Director and spokesperson Md. Abul Kalam told The FE: "We will soon publish the new rules on our website and in national newspapers for public opinion. Today, we also published the draft BSEC Margin Rules 2025, which had been adopted earlier. Public opinion will be taken before finalising it."
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