Dhaka, Bangladesh (BBN) - The securities regulator on Tuesday formed a 3-member body to submit its primary observations on as to how Exchange Traded Fund (ETF) can be issued in the capital market, officials said.
The ETF is similar to an open-end mutual fund (MF) which is normally issued under the Collective Investment Scheme (CIS).
The regulatory move came following the proposal of Dhaka Stock Exchange (DSE) which will launch new products such ETF to increase market diversification.
“The body led by executive director M Hasan Mahmud will submit its report within next 30 working days,” said Mohammad Saifur Rahman, an executive director of the Bangladesh Securities and Exchange Commission (BSEC).
Rahman said Commissioner Prof. Helal Uddin Nizami will monitor the job of the BSEC body formed to prepare the report for formulating rules of ETF.
The BSEC body would prepare its report by reviewing existing rules and regulations, Rahman said. “After the submission of the report, same body will formulate rules as per instruction of the commission to introduce the ETF.”
BBN/SSR/AD-24Dec14-11:03 am (BST)