SEC approves Tk 500cr special purpose fund

The stockmarket regulator yesterday approved a trust deed and registration of a Tk 500 crore special purpose fund.
The Securities and Exchange Commission (SEC) gave the nod at a meeting, chaired by the commission's chief Ziaul Haque Khondker.
Sonali Bank, Janata Bank, Eastern Bank Ltd and Investment Corporation of Bangladesh are sponsoring the First Bangladesh Fixed Income Fund, said an SEC spokesman.
The sponsors will finance Tk 200 crore, while the rest will be raised through an initial public offering.
While approving the fund, the SEC however attached a condition that the sponsors' portion of the fund will have to be utilised immediately in the stockmarket, which is now on the waning curve and suffering from a liquidity crisis.