The Bangladesh Securities and Exchange Commission (BSEC) has
withdrawn their enquiry orders on the mutual funds managed by Bangladesh RACE
Management PCL. As a result, the company can now operate its 13 mutual funds
normally without any restrictions.
On February 13, 2025, an order signed by BSEC Chairman
Khondoker Rashed Maqsood revised and withdrew the false and ill-motivated bans
imposed on RACE. This decision is expected to contribute positively to the
development of the Bangladesh capital market, allowing RACE and its mutual
funds to resume normal operations.
Market stakeholders view BSEC’s decision as a positive step
for the stock market. Over the past several months, RACE Management’s mutual
fund activities had been suspended, creating uncertainty among investors.
Investors had long been demanding the removal of these restrictions, as the
normal operation of mutual funds is crucial for market stability and investor
protection. According to a leading market analyst, mutual funds should be
allowed to operate independently in the interest of the capital market. This will
help restore investor confidence and play a significant role in the long-term
growth of the stock market.
Previously, allegations were raised against former BSEC
Chairman Professor Shibli Rubaiyat-ul-Islam for allegedly demanding bribes from
RACE Management PCL and attempting to seize control of its funds. After failing
in his attempt, he allegedly tried to tarnish the 15-year reputation of RACE
and its owners.
BSEC, Lifts Ban, RACE, Paving the Way, Market Stability, Dr.
Hasan Taher Imam, RACE, asset manager, ensures, BSEC, approximately, Tk, 700
crore, investment, BO accounts.
However, BSEC’s order BSEC/IEID/BRMPCL/Enquiry/2024/637 has
completely nullified that attempt. A spokesperson from the Association of Asset
Management Companies welcomed the regulatory decision, stating that nearly 70%
of the mutual fund sector’s assets had been stuck under various investigations
for an extended period.
The previous corrupt commission had initiated these
investigations, which were continued by the current commission, preventing the
market from regaining stability. However, if the newly led BSEC takes a
market-friendly approach to resolving these issues, mutual funds can play a
crucial role in revitalizing the capital market. We congratulate the current
commission under the leadership of Chairman Khondoker Rashed Maqsood.
