Staff Correspondent : The Bangladesh Securities and Exchange Commission (BSEC) has lifted the ban imposed on the mutual funds operated by Bangladesh RACE Management PLC. As a result, the company can now fully resume the management of its 13 mutual funds without any restrictions.
On 13 February BSEC Chairman Rashed Maqsood signed an order that reviewed and withdrew the false and politically motivated restrictions imposed on Race Management. This decision is expected to contribute positively to the growth of the capital market. Consequently, Race and its mutual funds can now return to their normal operations.
Market stakeholders view BSEC's decision as a positive development for the capital market. Over the past few months, the suspension of Race Management's mutual funds had caused uncertainty among investors. Investors had been demanding the withdrawal of these restrictions for a long time, as the smooth operation of mutual funds is crucial for market stability and investor protection.
According to leading market analysts, mutual funds should be allowed to operate independently in the interest of the capital market. This move will help restore investor confidence and contribute positively to the long-term growth of the capital market.
Previously, allegations were raised against former BSEC Chairman Prof Shibli Rubaiyat-ul-Islam, accusing him of extortion and attempting to take control of Bangladesh RACE Management PCL's funds. Failing to do so, he allegedly tried to tarnish the 15-year reputation and good image of RACE and its owners. However, through BSEC's order BSEC/IEID/BRMPCL/Enquiry/2024/637, this attempt has been completely thwarted.
A spokesperson for the Association of Asset Management Companies stated, "We welcome this regulatory decision. Nearly 70% of the mutual fund sector's assets in the capital market had been blocked for a long time due to various investigations.
The previous corrupt commission initiated these investigations, and the current commission continued them, preventing relief in the capital market. However, if the newly led BSEC resolves these issues in a market-friendly manner, the funds can play a vital role in revitalizing the capital market.
We congratulate the current commission led by Chairman Rashed Maqsood on this decision."