Changes in mutual fund rules

The Securities and Exchange Commission (SEC) yesterday decided to make some changes in the mutual fund rules, barring new mutual funds from offering placement shares to existing mutual funds.
The decision was taken at a meeting of the stock market regulator in Dhaka presided over by its Chairman Faruq Ahmad Siddiqi.
Placement of shares is the sale of a security to one buyer or a few buyers, as opposed to offering the security to the public through a group of dealers.
After the meeting, SEC Executive Director Farhad Ahmed said the commission also decided that the mutual funds cannot increase their capital base through offering bonus shares or rights issues.
“We will publish the new changes in mutual fund rules in newspapers for public opinion and suggestions,” he said adding that after scrutiny of the feedbacks new rules will be implemented.