The securities regulator has approved the revised guidelines of mutual funds (MFs), by increasing the maximum limit for individuals from Tk 100 million to Tk 250 million in the placement shares of MFs, officials said.
At the same time, the Securities and Exchange Commission (SEC) has lifted the limitations for institutional investors in the placement shares of MFs.
The approval came at a commission meeting held Tuesday at the SEC office, following the fund managers' proposal submitted to the SEC in November, 2010.
An SEC official said, the regulator will publish a gazette notification on the approved guideline of MFs.
Under the revised guideline of MFs, an individual is allowed to buy the units worth maximum Tk 250 million, earlier the limit was fixed at Tk 100 million.
On the other hand, institutional investors will be allowed to buy the placement units of MFs as much as they can.
The move comes after the recent situation of MFs and some MFs' units were sold below their face values due to investors' poor interest.
On the other hand, the fund managers recently were not able to come forward with fresh MFs as the sponsors were reluctant to buy the placement units. And some fund managers did not go for subscription of newly approved MFs due to a fear of under-subscription.
In such a situation, the fund managers proposed the SEC to ease the restrictions on placement units and the SEC finally gave its consent.
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