Bangladesh Securities and Exchange Commission (BSEC) has tightened the investment disclosures of mutual funds to increase transparency and ensure good governance.
It issued a notification in this regard on Sunday.
The asset management companies will send a complete statement of portfolios of a scheme before the expiry of 30 days from the end of the quarter to all unitholders. Besides, the statements will have to be published on their websites.
A fund manager will also publish a copy of its unaudited quarterly financial statements within one month from the end of the quarter on its website.
As a result of these decisions, mutual funds unitholders will be able to know the financial position of their invested funds. They also will know the information about the investment of funds.
It will be easier to make the decision on investment for the investors, said sources.
Moreover, a fund manager will publish a copy of its unaudited half-yearly financial statements within 45 days from the end of the half-year on its website.
Besides, a copy of the duly un-audited financial statements, including the statement of financial position, statement of comprehensive income, statement of cash flow, statement of changes in equity and accompanying accounting policies, and notes to the financial statements of the fund and for each the scheme will be submitted to the commission, once a year, within three months of the end of a financial year.
A copy of half-yearly unaudited financial statements has to be furnished to the commission within 45 days from the end of the first half of the financial year.
A quarterly statement of changes in the net asset of each of the schemes of the fund has to be submitted to the commission within 30 days of the end of each quarter.
And the quarterly statement of portfolios has to be submitted, including changes therein from the previous period, for each of the schemes.
A mutual fund, asset management company, trustee, custodian, and sponsor of the mutual fund will comply with the commission's directives.
Thirty-seven mutual funds are listed on the stock exchanges, but most of them are trading below the offer price (Tk10). So, the investors cannot know the financial position and investment information properly.