Dhaka, Feb. 12 -- Trustees and custodians are often blamed for not securing interest of unit holders of mutual funds whenever embezzlement of any fund by a rogue asset management company (AMC) makes headlines.

Facing a situation like that, several trustees said they had little power to stop fund mismanagement as fund managers were the signatory of transactions and withdrawals of funds.

Considering the limitations, the taskforce of the country's capital market suggested making trustee and custodian signatories of the transactions conducted by AMCs

It made a set of recommendations in a report submitted to the securities regulator, aimed at bringing discipline to the mutual fund industry.

The MF industry in other countries, including nei...