BSEC okays Tk 50cr Prime Fin 2nd MF

Staff Correspondent | Published: 00:10, Nov 09,2016

 
 

Fines two brokerage houses Tk 7 lakh

The Bangladesh Securities and Exchange Commission on Tuesday approved an open-end mutual fund, Prime Finance Second Mutual Fund, with an initial target size of Tk 50 crore.
The capital market regulator gave the approval at a commission meeting presided over by its chairman M Khairul Hossain.
Of the Tk 50-crore initial target size, Prime Finance and Investment Limited will provide Tk 20 crore as sponsor of the fund, while the rest Tk 30 crore will be collected from investors by selling units at Tk 10 each.
The Investment Corporation of Bangladesh will act as trustee and custodian of the fund, while Prime Finance Asset Management Company will act as asset manager of the fund.
The BSEC at the meeting also fined two brokerage houses — Salta Capital and CMSL Securities Limited — total Tk 7 lakh and warned two other brokerage houses — Arena Securities Limited and Haji Ahmed Brothers Securities.
Salta Capital was filed Tk 5 lakh based on a BSEC inspection that found the brokerage house conducted a number of irregularities including fund shortage in consolidated customer account and short selling of shares.
The BSEC fined CMSL Securities Tk 2 lakh for providing margin loan in purchasing ‘Z’ category shares and for providing misleading information to the regulator regarding net capital balance of the entity violating rules. 

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