BSEC okays Shanta Fixed Income Fund’s draft prospectus
Stocks
The Bangladesh Securities and Exchange Commission (BSEC) has approved the draft prospectus of Shanta Fixed Income Fund, an open-end mutual fund.
The securities regulator has given the approval on Wednesday at the 779th commission meeting, said a press release.
The Bangladesh General Insurance Company Ltd is the trustee and the Brac Bank is the custodian of the fund while Shanta Asset Management Ltd is the sponsor and asset manager.
According to the BSEC, the primary target size of the fund is Tk10 crore. Of this, the sponsor will provide Tk1 crore and the remaining Tk9 crore will be collected by selling units of the mutual fund to the investors at a face value of Tk10 each.
Typically, the asset management firm will focus on mid-cap and large-cap stocks, while capital protection will get high priority.
Open-end mutual funds have no mandatory endpoint, and according to the current regulations, their units are not listed with the stock exchanges.
Therefore, investors buy and sell open-end fund units based on current asset value from the asset manager's office or through the authorised agents.
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