Asset management companies on Monday proposed simplifying the investment process in the mutual fund sector, promoting mutual funds through investment education and taking several other initiatives.
They submitted the proposals to the Bangladesh Securities and Exchange Commission during a programme 鈥楧eveloping the mutual fund industry in Bangladesh鈥� held at the BSEC head office in the capital Dhaka, according to a press release.
The stock market regulatory body said that the capital market could not progress unless the mutual fund sector was well-structured.
BSEC chairman Khondoker Rashed Maqsood emphasised the importance of the mutual fund sector, saying that the sector should be a key part of the capital market as it provides a good alternative investment opportunity for general investors.
He said, 鈥楳utual fund investments are managed by skilled and experienced fund managers, which increases the chances of profitability for investors and provides better protection for their investments.鈥�
The chairman also mentioned that the BSEC was addressing the problems and challenges on the country鈥檚 capital market and the mutual fund sector, aiming to find sustainable solutions.
He assured that the commission is ready to offer all necessary support for the sector鈥檚 development.
He called on stakeholders in the mutual fund sector to work together through their associations to strengthen mutual fund institutions in the country.
He further stated that a task force was formed and it was working on a broader scale with market stakeholders as part of a 鈥榝ocus group鈥� initiative.
Asset management company officials attending the programme suggested increasing investor confidence in the mutual fund sector by enhancing transparency, accountability and governance.
They also proposed reforms in existing regulations, listing companies with strong fundamentals on the market, introducing measures to make the capital market more investment-friendly, reforming tax policies related to the sector and easing repatriation of profits and capital gains to attract foreign investors.
They also recommended initiatives to enhance the skills and capabilities of sector professionals and called for coordinated policy support from relevant government institutions and organisations.
BSEC commissioners Md Mohsin Chowdhury, Md Ali Akbar and Farzana Lalarukh, among others, were present in the meeting.