SEC okays Reliance mutual fund
The stockmarket regulator yesterday approved a prospectus of a Tk 55 crore closed-end mutual fund, Reliance One, the first scheme of Reliance Insurance Mutual Fund.
The Securities and Exchange Commission (SEC) gave the nod at a meeting with the commission's chairman Ziaul Haque Khondker in the chair.
The 10-year multi-scheme fund is sponsored by Reliance Insurance Company Limited, a listed insurance firm in Bangladesh.
Of the total fund, Tk 16.50 crore will be raised through pre-IPO private placement and Tk 27.50 crore from the public through initial public offering (IPO). The remaining amount is being sponsored by Reliance Insurance. The face value of each unit of the fund is Tk 10.
AIMS Bangladesh Limited is the asset manager and investment advisor of the fund, while Bangladesh General Insurance Company is trustee and Standard Chartered Bank is its custodian.
Presently, 33 mutual funds are listed on the stockmarket that accounts for around 2 percent of the total market capitalisation.
In another development, the SEC neither approved nor rejected a proposal of issuing bonds by Northern Power Solution.
Instead, the SEC sought further information from the company, as the regulator found deficiency in the power company's proposal of bond issuance.
“A letter seeking further documents on the bond issuance will be sent to the company,” said an SEC official after the meeting.
Earlier, Northern Power sought permission from the SEC to raise Tk 175 crore through issuing bonds at 18 percent interest rate through private placement.
The company in the proposal said 50 percent of the bonds are convertible to ordinary shares after a certain period of time.
Moreover, the existing paid-up capital of Tk 91 crore suggests the company should go for IPO as per regulatory requirements. But, the company is planning to issue convertible bonds instead.
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