Draft prospectus of new open-end mutual fund gets regulatory nod

The securities regulator has approved the draft prospectus of a new open-end mutual fund namely ‘Green Delta Dragon Enhanced Blue Chip Growth Fund’.

The approval came at a meeting held at the office of Bangladesh Securities and Exchange Commission (BSEC) on Tuesday. At the meeting, the regulator also granted consent for the appointment of two independent directors to the Dhaka Stock Exchange (DSE).

In accordance with the regulatory approval, the initial size of the new mutual fund will be Tk 500 million. Green Delta Insurance Company and Dragon Capital Markets, the sponsors of the fund, have jointly contributed Tk 50 million.

The remaining Tk 450 million will be collected from investors through the sales of mutual fund units at Tk 10 each. Green Delta Dragon Asset Management is the asset manager of the fund.

Bangladesh General Insurance Company and BRAC Bank have been working as the trustee and the custodian of the fund respectively.

As per another regulatory approval, the DSE will appoint Md Shaheedul Islam and Kawser Ahmed as independent directors.

Once their appointment is completed, it will fill the vacancies of two independent director positions on the board of the demutualised premier bourse. The board comprises seven independent directors, five shareholder directors and a managing director.