Dhaka, Bangladesh (BBN)– The Securities and Exchange Commission (SEC) has extended timeframe for mutual funds further to make investments without limit up to June 30 this year, officials said.
Under the decision, the Asset Management Companies (AMCs) will now be able to continue investing beyond limit up to that time.
Earlier, a mutual fund could invest 10 percent of its total fund size in a single company and 25 per cent in a single sector.
As a result, despite having funds, the AMCs had a bar to make sufficient investments in the market.
In October, 2011 the securities regulator relaxed the investment limit of mutual funds in a particular sector or a company up to December 31, 2011 in a move to bring idle fund onto the stock market.
Currently, there are 38 mutual funds listed with the stock market with their combined capital of around BDT 35 billion.
BBN/SSR/AD-24Feb12-7:09 am (BST)