Mutual funds with no maturity period to go by 2011: SEC

The mutual funds having no maturity period will have to pull out of the market by December 2011, the market regulator said.
However the mutual funds that passed 10 years after listing will come within the purview.
The Securities and Exchange Commission (SEC) took the decision at a meeting yesterday.
An SEC official said there are some funds that have no maturity period. These funds entered the market when there were no specific rules about fund management, the official said.
The mutual funds, which have no maturity period, are ICB's eight mutual funds.
The SEC at the meeting also approved floatation of IFIC Bank First Mutual Fund and issuance of rights shares by Karnaphuli Insurance Company and Delta Spinners Ltd.
The size of IFIC Bank First Mutual Fund is Tk 120 crore, of which IFIC Bank has subscribed Tk 25 crore as sponsor. Besides, Tk 55 crore has already been raised through pre-IPO placement, while the rest Tk 40 crore has been kept for IPO (initial public offering).
Karnaphuli Insurance will raise Tk 26.75 crore by issuing one right share against each existing share with an offer price of Tk 200 each, including Tk 100 as premium.
Delta Spinners will raise Tk 15.28 crore through offering one right share against each existing share with face value of Tk 100 per share.