The Securities and Exchange Commission (SEC) is expected to approve an ICB proposal to raise capital for the Tk 50 billion Bangladesh Fund (BF) on May 30.
Managing Director of Investment Corporation of Bangladesh (ICB), the promoter and major sponsor of BF, confirmed it and said that they will soon invite private sector banks, non-banking financial institutions (NBFI) and insurance companies to be involved in the BF.
ICB and seven other state-owned financial institutions already contributed Tk 15 billion in the largest ever open-ended mutual fund as sponsors.
The remaining Tk 35 billion will be raised from institutional and individual investors.
ICB managing director told FE that they will organise road shows, if necessary, to persuade institutional and individual investors to invest in the BF.
He said ICB has recommended a number proposals to the finance ministry to make the BF attractive to investors.
The proposals included allowing undisclosed money to be invested in the BF, income on dividends to be made tax free and accounting the BF as 'approved securities'.
BF has already started trading in the capital market since last month with the sponsor's equity.
But so far it has had little impact in the capital market as DGEN, the benchmark index of Dhaka Stock Exchange continued to plunge.
Besides ICB the other sponsors of BF are Sonali Bank, Rupali Bank, Agrani Bank, Bangladesh Development Bank, Shadharan Bima Corporation and Jiban Bima Corporation.
Managing Director of Investment Corporation of Bangladesh (ICB), the promoter and major sponsor of BF, confirmed it and said that they will soon invite private sector banks, non-banking financial institutions (NBFI) and insurance companies to be involved in the BF.
ICB and seven other state-owned financial institutions already contributed Tk 15 billion in the largest ever open-ended mutual fund as sponsors.
The remaining Tk 35 billion will be raised from institutional and individual investors.
ICB managing director told FE that they will organise road shows, if necessary, to persuade institutional and individual investors to invest in the BF.
He said ICB has recommended a number proposals to the finance ministry to make the BF attractive to investors.
The proposals included allowing undisclosed money to be invested in the BF, income on dividends to be made tax free and accounting the BF as 'approved securities'.
BF has already started trading in the capital market since last month with the sponsor's equity.
But so far it has had little impact in the capital market as DGEN, the benchmark index of Dhaka Stock Exchange continued to plunge.
Besides ICB the other sponsors of BF are Sonali Bank, Rupali Bank, Agrani Bank, Bangladesh Development Bank, Shadharan Bima Corporation and Jiban Bima Corporation.
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