FE Report (March 10, 2011)
Investment Corporation of Bangladesh (ICB) has approved Tk 5.0 billion to sponsor the Bangladesh Fund (BF), the largest ever mutual fund (MF), which is going to be floated for supporting the stock market, officials said.
The approval came Wednesday at a board meeting of ICB, the state-owned asset management company.
After the board meeting, ICB Managing Director Md Fayekuzzaman told the reporters that the approval marked the beginning of the key role of the institutions to salvage the stock market with a strong back-up support from the ICB.
"This MF will help the market stable in future," Mr Fayekuzzaman said.
He said the ICB Wednesday sent letters to other seven joint sponsors so that their boards approve their sponsor portions on an urgent basis.
"After getting approval from other boards, the BF will be floated in playing a key role for sustainable development of the stock market," Mr Fayekuzzaman said.
On March 6, the ICB, five state-owned commercial banks (SCBs) and two insurers declared to launch BF, an open-end MF, worth Tk 50 billion.
As a sponsor, ICB will contribute Tk 5 billion.
Five SCBs - Sonali Bank, Rupali Bank, Janata Bank, Agrani Bank and Bangladesh Development Bank Limited (BDBL), Sadharan Bima Corporation and Jibon Bima Corporation will contribute as joint sponsors.
As per joint decision, out of Tk 50 billion, Tk 25 billion will be invested in the shares of listed companies and the remaining Tk 25 billion will be invested in money market as per regulatory permission.
BF will also demand tax exemption and five per cent quota in the IPOs (initial public offerings) of upcoming companies.
Investment Corporation of Bangladesh (ICB) has approved Tk 5.0 billion to sponsor the Bangladesh Fund (BF), the largest ever mutual fund (MF), which is going to be floated for supporting the stock market, officials said.
The approval came Wednesday at a board meeting of ICB, the state-owned asset management company.
After the board meeting, ICB Managing Director Md Fayekuzzaman told the reporters that the approval marked the beginning of the key role of the institutions to salvage the stock market with a strong back-up support from the ICB.
"This MF will help the market stable in future," Mr Fayekuzzaman said.
He said the ICB Wednesday sent letters to other seven joint sponsors so that their boards approve their sponsor portions on an urgent basis.
"After getting approval from other boards, the BF will be floated in playing a key role for sustainable development of the stock market," Mr Fayekuzzaman said.
On March 6, the ICB, five state-owned commercial banks (SCBs) and two insurers declared to launch BF, an open-end MF, worth Tk 50 billion.
As a sponsor, ICB will contribute Tk 5 billion.
Five SCBs - Sonali Bank, Rupali Bank, Janata Bank, Agrani Bank and Bangladesh Development Bank Limited (BDBL), Sadharan Bima Corporation and Jibon Bima Corporation will contribute as joint sponsors.
As per joint decision, out of Tk 50 billion, Tk 25 billion will be invested in the shares of listed companies and the remaining Tk 25 billion will be invested in money market as per regulatory permission.
BF will also demand tax exemption and five per cent quota in the IPOs (initial public offerings) of upcoming companies.
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