Dhaka, Bangladesh (BBN)-The stock market regulator has warned the Investment Corporation of Bangladesh (ICB) for its failure to wind-up or convert its eight closed-end mutual funds (MFS) within the stipulated timeframe.
The Bangladesh Securities and Exchange Commission (BSEC) has also set December 2016 as fresh dead line for winding-up or converting all of its eight closed-end MFs in phases.  
The warning and instruction were issued on October 30 through a letter sent to the chief executive officer of the state-run ICB.
“Being directed by the commission, you have been warned due to delay in implementing the direction to wind-up or convert the MFs by December 31, 2014 as per rules,” the BSEC letter reads.
“Besides, you have been directed to wind-up or convert the MFs as per the decision of unit holders,” the letter adds.
ICB Managing Director Md Fayekuzzaman acknowledged that they have received the letter sent by the securities regulator.
Asked about the next course of action, Fayekuzzaman said they are analysing the regulatory instruction.
“Earlier, we requested the regulator to review its decision so that our MFs can continue for the interest of industry and market,” said Fayekuzzaman.     
As per regulatory decision, the ICB will have to wind-up or convert its eight closed-end MFs with the dead-lines as follows:

Name of closed-end MFs

Deadline of conversion or winding-up

1stICB MF

March 31, 2015

2ndICB MF

June 30, 2015

3rdICB MF

September 30, 2015

4thICB MF

December 31, 2015

5thICB MF

March 31, 2016

6thICB MF

June 30, 2016

7thICB

September 30, 2016

8thICB

December 31, 2016

The securities regulator brought amendment to the rules of MFs on January 8, 2013 setting a facility of conversion of the closed-end MF to open-end one.
As per amendment, a closed-end MF can be converted to open-end one based the consent given by three-fourth unit holders who attended the special meeting arranged to take decision regarding winding-up or conversion of a MF.
In that case the closed-end MF will be de-listed from the stock exchange.
BBN/BB/ASI-02Nov14-8:00pm (BST)