BSEC chairman stresses restoring investor confidence in mutual funds

Bangladesh Securities and Exchange Commission (BSEC) Chairman Professor Shibli Rubaiyat-ul Islam has stressed rebuilding investor confidence to boost mutual fund investments as they have a major role to play in stabilising the capital market.

"The commission is attaching importance to mutual funds to restore stability in the market. Some funds are doing well, and are yielding good returns for investors. Work is underway to bring some Shariah-based funds to the market in the future," he said while speaking as chief guest at the Ring the Bell ceremony of ICB AMCL CMSE Golden Jubilee Mutual Fund and Investors' Claim Settlement Programme at Hotel InterContinental in the capital on Tuesday.

Mentioning that investors lost interest in investing in the capital market for not getting expected returns on investments, he said, "Companies in the country do businesses taking various facilities and make profits, but they do not want to give returns to shareholders."

The Capital Market Stabilisation Fund (CMSF) has been set up to bring back unclaimed dividends of investors in listed companies, he said and expressed his hope that this fund will contribute to market stability and give good dividends to the investors.

On the occasion, the CMSF settled the claim of Saif Imam, son of Shaheed Janani Jahanara Imam.

He received the due amount for his shares along with the shares of his late mother Shaheed Janani Jahanara Imam, and his elder brother Shafi Imam Rumi.

Nojibur Rahman, chairman of the CMSF and former principal secretary to the prime minister chaired the event, where BSEC commissioners Dr Shaikh Shamsuddin Ahmed and Dr Mizanur Rahman, and Dhaka Stock Exchange Chairman Md Eunusur Rahman were present as special guests.

Through the event, the CMSF along with other stakeholders completed the Ring the Bell ceremony of ICB AMCL CMSF Golden Jubilee Mutual Fund and started its official trading. 

The CMSF and ICB Asset Management Company Limited (ICB AMCL) launched the fund to celebrate the golden jubilee of the independence of Bangladesh.

The total size of the fund is Tk100 crore with a face value of Tk10 per unit.

The CMSF provided Tk50 crore, while ICB Asset Management contributed Tk20 crore, ICB Tk5 crore as pre-IPO placement.

The remaining Tk25 crore was collected from the general investors through an initial public offering (IPO).