The
Securities and Exchange Commission yesterday decided to let mutual funds invest
in securities freely, in a move that will increase the flow of funds to the
cash-strapped stock market.
“The
SEC has lifted the investment ceiling for mutual funds as they urged the
regulator to do so,” said Saifur Rahman, an executive director of SEC.
The
new decision will remain in force until December 31, he said.As per the
securities law, a mutual fund was allowed to invest 10 percent of its capital
in a single security and 25 percent in one sector.
“From
now, we can invest freely in any sector or stock,” said an asset manager.Asset
managers on Wednesday urged the stock market regulator to relax the ceiling of
investment to increase the credit flow to the market which is now experiencing
high volatility mainly due to a liquidity crunch.
The
SEC approved the rights offer of Premier Leasing and Finance Ltd. The company
will issue 52.09 lakh ordinary shares of Tk 100 each, totalling Tk 52.09 crore.
The company will offer one rights share for each existing share.
The
net asset value (NAV) of the company is Tk 156.07, while the earnings per share
are Tk 151.01, according to the last audited financial report.
Meanwhile,
the SEC has approved the prospectus of a Tk 50 crore closed-end mutual fund of
Sandhani Life Unit Fund. The face value of each unit is Tk 10. Alif Asset
Management Ltd will be the asset manager for it.
The
SEC also approved the trust deed of a Tk 100 crore of MTB Unit Fund. Mutual
Trust Bank will provide Tk 20 crore and Tk 80 crore will be colleted from the
capital market. The asset manager of the fund is Alliance Asset Management.
Source: .The daily star (Friday,
September 16, 2011).
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