The securities regulator has asked the trustee of DBH 1st Mutual Fund to convene a meeting of the unit holders in line with the rules.
The Bangladesh Securities and Exchange Commission (BSEC) gave the order after the Bangladesh General Insurance Company sought guidance from the regulator.
On September 24, the trustee sought the advice from the Commission to hold the meeting to take decision on the conversion of the fund.
The unit holders have 78.42 per cent stake in the fund.
"The procedure for taking any decision by the trustee is clearly mentioned in the rules of the mutual funds. We've asked the trustee to act as per the existing rules," Mohammad Saifur Rahman, a BSEC executive director, told the FE.
Asked, Ahmed Saifuddin Chowdhury, managing director of the BGIC, said they have yet to receive the order from the securities regulator.
"We will take the decision in the light of instruction from the BSEC. We will call the meeting in line with the existing rules for converting a closed-end mutual fund into open-ended in accordance with the decision of the three-fourths unit holders," Mr. Chowdhury said.
LR Global Bangladesh Asset Management Company, the asset manager of the fund, had earlier extended the fund's tenure for another 10 years.
The unit holders baulked at the decision of LR Global and wrote to the trustee for the conversion.
Against this backdrop, the BGIC pushed for the unit holders' meeting.