The tenure of EBL First Mutual Fund, a closed-end mutual fund, has been extended 10 more years until August 18, 2029, said an official disclosure on Monday.
Closed-end mutual funds are investment funds that gather a fixed pool of money for 10 years from a number of investors and re-invest them into stocks, bonds and other assets.
RACE Management PCL, the asset manager of the fund, has informed that By order of the government, the BSEC through the exercise of its power accorded by the Securities and Exchange Ordinance, 1969 (XVII of 1969) Section 20A has given consent to extend the tenure of the existing EBL First Mutual Fund for another 10 years in relaxation of all applicable rules & regulations and procedures.
In continuation, the EBL First Mutual Fund is declared extended up to August 18, 2029, said the disclosure.
Earlier in September 2018, the stock market regulator has given a go-ahead to the extension of the tenure of closed-end mutual funds and handed over the right to the asset managers.
In this regard, the BSEC also issued a directive scrapping its previous directive regarding conversion or liquidation of closed-end MFs on completion of tenure of ten years.
The existing closed-end MFs which are unwilling to extend tenure will be allowed to be converted or liquidated as per the rules, the, the BSEC directive said.
According to BSEC directive, total tenure, including another term of ten years, of the existing closed-end MFs will not be more than 20 years.
Each unit price of EBL First Mutual Fund, which was listed on the Dhaka Stock Exchange (DSE) in 2009, closed at Tk 5.30 on Sunday.