Dhaka, Oct. 21 -- The Bangladesh Securities and Exchange Commission (BSEC) has moved to reform the country's struggling mutual fund sector as most closed-end mutual funds (MFs) have long been trading far below their net asset value (NAV), reflecting prolonged poor performance and waning investor confidence.
Many of these funds are currently trading at steep discounts-ranging from 40 percent to 60 percent below their NAV-leaving thousands of investors unable to recover their investments.
To tackle the problem, the BSEC has issued a draft amendment to the Mutual Fund Rules, proposing mandatory liquidation or conversion of non-performing closed-end funds into open-end ones.
Under the proposed rules, if the average market price of a fund rem...