The Bangladesh Securities and Exchange Commission on Monday allowed foreign investors to be sponsors of mutual funds.
The decision came at a commission meeting presided over by its chairman Shibli Rubayat-Ul-Islam, a BSEC press release said.
It also issued a directive regarding the matter.
According to the directive, any foreign company, either public or private, must be eligible to be a sponsor of any mutual fund either single or jointly with any local eligible sponsor.
Each foreign company, being a sponsor of mutual fund, either single or jointly with any local eligible sponsor, must meet the requirements to create a trust as per the Trust Act, 1882.
However, in the case of joint sponsor, local sponsor may be appointed to create the trust and other necessary activities in this regard.
No foreign company as a sponsor of mutual fund can subscribe more than 25 per cent of the fund size, it said.
The regulator at the meeting also decided to appoint a special auditor to assess financial statements and activities of Fareast Finance and Investment Limited.
The commission on the day also approved BSEC (Capital Market Stabilisation Fund), 2021.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Stocks