BSEC to Review and Amend Mutual Fund Rules, Chairman Masud Khan Says

The Bangladesh Securities and Exchange Commission (BSEC) will take an initiative to review and, where necessary, amend the mutual fund rules, following international best practice and taking stakeholders' views into account, BSEC Chairman Masud Khan has said.

He made the remarks on Thursday (28 October) at a views-exchange meeting with capital-market stakeholders at the BSEC office in Agargaon, Dhaka, on reviewing the 'Bangladesh Securities and Exchange Commission (Mutual Fund) Rules, 2025'.

Masud Khan said no unreasonable or illogical decision would be taken in reviewing and amending the rules, that stakeholders' opinions are extremely important to the commission, and that the commission is keen to hear them.

Commission members, officials of relevant departments, and representatives of the Dhaka Stock Exchange, Chittagong Stock Exchange, Central Depository Bangladesh Limited, mutual fund trustees, asset managers and custodian institutions took part in the meeting.

The BSEC chairman said increasing institutional investors' participation is essential to make the country's capital market more dynamic, sustainable and investment-friendly, that desired growth cannot be achieved by relying only on small investors, and that the mutual fund sector can play an important role in this.

He said sustainable growth in the stock market is not possible without development of the mutual fund sector, and that alongside effective initiatives for the sector's growth, protecting investors' interests must also be emphasised.

Stressing investment education and financial literacy, Masud Khan said financial literacy is extremely important for the long-term development of the stock market, and that sustainable development is not possible without effective initiatives in this area.

He said the BSEC, capital-market institutions and other stakeholders must work together to increase investors' financial knowledge, awareness and ability to make correct investment decisions.

A press release said the review initiative has been taken to develop the mutual fund sector, increase institutional investment, and make the regulatory framework more effective and market-friendly.

A presentation on various aspects of the rules was given at the meeting by Md Mahmudul Haque, chief executive director of the BSEC's Investment Management Department, covering existing provisions and possible areas of amendment.