Development of mutual funds is need of the hour: BSEC chairman

Development of mutual funds in the national interest by attracting domestic and foreign investment is the need of the hour, said Professor Shibli Rubayat-ul-Islam, chairman of Bangladesh Securities and Exchange Commission (BSEC).

"The commission is working with all concerned for the development of the sector. I believe that the mutual fund sector is doing well and will do better in the future," he said at a conference titled "Investment management in Bangladesh" in Cox's Bazar jointly organised by BSEC and Dhaka Stock Exchange (DSE) on Saturday.

Representatives of BSEC, DSE, CSE, and mutual fund-related institutions participated in the conference.

Shibli Rubayat-ul-Islam said that the commission is working to ensure that investors do not face any loss even if they cannot make much profit in the current challenging times.

Referring to the shortage of foreign currency in the country, he said, "Foreign currency is being used for the industrialisation and infrastructural development of the country, which will benefit us in the near future. Considering the economic context, the next five years will be a golden period for Bangladesh."

BSEC Commissioner Sheikh Shamsuddin Ahmed said that in order to popularise the mutual fund, the institutions of this sector should gain a reputation through ensuring transparency.

He also said that the possibility of giving more returns to the investors should be explored by reducing the cost of investment management and using modern technology with more campaigns.

He requested everyone to be more diligent in listing fundamental companies and developing the equity market.

BSEC Commissioner Abdul Halim said that trust and confidence can encourage people to invest in the mutual fund sector. He called on all stakeholders to work together to overcome the challenges of the sector.

In his keynote address, BSEC Commissioner Mizanur Rahman highlighted the current status of Bangladesh's mutual fund sector and made a comparative picture of Bangladesh and other neighbouring countries.

He said that expansion of the mutual fund sector requires capacity building and restructuring of regulations and policies.

Hasan Imam, president of the Association of Asset Management Companies and Mutual Funds (AAMCMF), said that mutual funds have a glorious history of 300 years in the development of capital markets across the world.

DSE Acting Managing Director Saifur Rahman Majumdar said that there is an opportunity to develop the capital market by expanding mutual funds. 

A panel discussion titled "Technology for Transparency and Liquidity of Mutual Funds and Other Collective Investment Schemes" was held in the conference programme moderated by Mohammad Rezaul Karim, executive director of BSEC. The discussion addressed various aspects of ensuring liquidity and transparency of mutual funds and other collective investment schemes.

In the second part of the programme, BSEC Director Md Mahmudul Haque gave a presentation titled "Regulatory Oversight of Asset Managers, Trustees and Custodians".